October 22, 2018 8:19am

The IBB is indicating a +0.01%, XBI is indicating +0.61% and XLV is indicating a +0.05% UPSIDES in Monday’s pre-open;

 

We’ve danced the limo - can we next dance our portfolio with a Texas two-step and double shuffle to the upside

Pre-open indications: the OVERSOLD are ready for a game of pick-up-stocks

 

I post about “indication intelligence” devoting my time to collection and analysis of information in the perception of sector vulnerabilities and strengths – it’s more than opinion, some facts in evidence need to be recognized!

U.S. stock index futures are looking higher

Dow futures are UP +0.52% (+132 points) and NASDAQ futures are UP +0.92% (+66 points)

 

U.S. stocks were set to open higher on Monday morning

European shares traded higher as sentiment bounced back after last week's losses.

Asia Pacific markets mostly rose as major Chinese indexes leaped more than 4 percent.

 

Data docket: Chicago Federal Reserve will release national activity index figures at 8:30 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.01% UPSIDE in Monday’s pre-market;

  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.61% UPSIDE in Monday’s pre-market;

  • The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.05% UPSIDE in Monday’s pre-open;

  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.38% UPSIDE in Monday’s pre-open

 

Henry’omics:

Markets rebounded on Friday with a continuing sell-off in the sector as  the sector took it's fourth (4th) hammering in five (5) sesssions ang eigth (8th) in ten (10) sessions.

RegMed shares have been pounded since early September. The SPDR Biotech ETF (XBI) had been up 18% for 2018 at the start of September.  Since then the Biotech ETF has given up nearly all of its gains and is now up less than 1% on the year –it’s time for some movement!

  • In 15 sessions in October – there were 12 negative closes and 3 positive closes
  • 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

 

Traders need to switch their attention and play some upside “hands”.

 

From Friday’s night’s newsletter: “Another session of reversals reminds us that Friday is the anniversary of the 1987 stock-market crash. When you wish upon a session, makes no difference which … stock you held.”

  • The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of +1.56% after 3 negative sessions out of 5!
  • Review the range of the 8 upside from +$0.01 (BTX) to +$0.37 (FATE) while the 34 downside ranges from -$0.015 (KOOL) to -$4.03 (RGNX) with a 3 flat close (AST, BSTG and RENE.L).
  • Interesting stat: Volume has been DECREASING … look at the depth – 13 out of 34 of the upside had higher (than the 3 month average) volume while the downside experienced 1 having greater volume (than the 3 month average) out of 8.

 

 

Companies in my headlights – It’s your decision; I provide an idea and context:

.......... It’s time for the OVERSOLD to begin their trek upward to being OVERBOUGHT as Q3 quarterly results are due soon!

 

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.