October 11, 2018 7:35am
Nobody likes this market… follow or not pre and aftermarket indications post a steep decline
Pre-open indications: 6 BUYs and 0 SELLs
In compiling my indication signals, I draw on logic, historical precedents, specific knowledge of the sector and its practices as to lessons learned. It’s important for investors to identify and determine which indication is actually performance based. SUBSCRIBE!
U.S. stock index futures point again to a dive
Dow futures are DOWN -0.78% (-198 points) and NASDAQ futures are DOWN -0.60% (-43 points)
U.S. stock index futures tanked ahead of Thursday's open, as the global market rout continued to thrash stocks.
Europe stocks slump to their lowest level in 20 months as U.S. markets sell-off transfixing global markets
Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4%. Major banking names also fell in Australia.
Data docket: the consumer price index figures are due out at 8:30 a.m. ET today, which will be of key importance to investors – as depending on the outcome, this could alleviate or deteriorate market sentiment. Elsewhere, jobless claims are due out at 8:30 a.m. ET, while the treasury budget is scheduled to be released at 2 p.m. ET.
The iShares Nasdaq Biotechnology (IBB) is indicating a -0.96% DOWNSIDE in Thursday’s pre-market;
The SPDR S&P Biotech ETF (XBI) is indicating in a -1.69% DOWNSIDE Thursday’s pre-market;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
The iShares Russell 2000 (IWM) is indicating a -1.23% DOWNSIDE in Thursday’s pre-open
The title speaks for itself …
Equity markets around the globe are seeing red Thursday, after sinking more than 800 points in the previous session as concerns around rising rates continued to batter markets.
On Thursday, Asia-Pacific stocks saw sharp declines by the region's market close, while European shares tumbled as the equity sell-off spilled into markets worldwide.
From Wednesday’s night’s newsletter: “That’s 7 negative closes and 1 positive session since October 1st - a new record! Algorithmic processes were the greater influence disrupting 42 sector companies who missed the elevator, 2 walked the stairs and 1 cowered out of 45 covered equities; although, “I’m still waiting for the next elevator for some sector equities to go up. Even I am perplexed, is it always algorithmic rules, or is it clinical risks, interest rates, political issues, trade disagreements, sentiment? No it’s … CONFIDENCE!”
- Of the 45 companies covered on Wednesday; 42 downside equities finished in a range of -0.16% (AGTC) to -18.73% (BOLD – an offering in process) while 2 upside equities oscillated from +1.84% (XON) to +7.57% (CLBS) with 1 flat close (BSTG);
- Volume is still LOW … look at the depth – 1 out of 2 of the upside had higher (than the 3 month average) volume while the downside shrunk with 21 had greater volume (than the 3month average) out of 42.
The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of -8.47% - at the least consider an upside move after 5 negative sessions out of 5!
- In 8 sessions in October – there were 7 negative closes and 1 positive close
- In 19 sessions in September – there were 10 negative closes and 9 positive close;
- In 21 August sessions – 6 had negative and 15 had positive closes
Companies in my headlights – It’s your decision; I provide an idea and context:
bluebird bio (BLUE) closed down -$8.54 to $127.73 after Tuesday’s +$2.91, Monday’s $133.36, Friday’s $143.31 and last Thursday’s $140.68. The aftermarket indication is a negative +$0.07 or +0.05% - SELL to BUY;
Cellectis SA (CLLS) closed down -$0.75 to $26.68 and has a positive aftermarket indication of +$0.08 or +0.08%. October started at $27.96 with a high of $26.41 and a low of $26.88 while September started at $28.97 and ended a $28.22 with a low of $25.99 and a high of $29.25 – BUY;
CRISPR Therapeutics (CRSP) closed down -$0.21 after Tuesday’s +$0.25 to $36.85, Monday’s -$2.00, Friday’s +$1.00 to $28.57 and last Thursday’s $37.56. CRISPR Therapeutics (CRSP) and Vertex Pharmaceuticals Incorporated (VRTX) announced that the U.S. FDA has lifted the clinical hold and accepted the Investigational New Drug application (IND) for CTX001 for the treatment of sickle cell disease (SCD). CTX001 is an investigational, autologous, gene-edited hematopoietic stem cell therapy for patients suffering from severe hemoglobinopathies. CRSP has an aftermarket indication is a positive +$5.18 or +14.14% - Maintaining BUY;
Editas Medicine (EDIT) closed down again -$1.77 to $25.99 after Tuesday’s -$27.76, Monday’s -$0.71 to $27.86, Friday’s $28.57 and last Thursday’s $28.61. A rebound should be in-store with a positive aftermarket indication of +$2.11 or +8.12% – Maintaining BUY;
Intellia Therapeutics (NTLA) closed down again -$1.24 after Tuesday’s -$0.66 to $23.54 after Monday’s -$0.14 to $24.20, Friday’s $24.34 and last Thursday’s $24.40. A rebound should be in-store – with an a positive aftermarket indication of +$2.49 or +11.17% - Maintaining BUY;
SAGE Therapeutics (SAGE) closed down again -$7.35 to $120.26 after Tuesday’s -$7.12 and Monday’s +$0.49. Even I got “whacked” on this one; yet the positive aftermarket indication is a positive +$2.62 or +2.18% - Maintaining BUY
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.