October 23, 2018 8:41am

Will a dead cat bounce; yesterday’s (10) upside showed some signs of life and will the “few and the lean” of the aftermarket indications actually spur some drive other than downside movement?

Too many questions and few answers; if there’s a life in these dead stocks – check the pulse (SARCASM)!

 

Pre-open indications: pick an indication, is the aftermarket indication a viable measurement - anything in this market might have significance! Many of the OVERSOLD have needed a game of pick-up-stocks – 4 BUYS and 3 SELLs

 

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 ridin’ low and lower

Dow futures are DOWN -1.43% (-362 points) and NASDAQ futures are DOWN -1.62% (-116 points)

 

U.S. stock futures pointed to a deeply negative open as investors continued to sell major technology and financial shares during this turbulent October markets.

European stocks were lower, as diplomatic tensions in Saudi Arabia, concerns over Italy's Budget and ongoing Brexit talks all depressed market sentiment.

Asian markets fell in afternoon trade as investors remained cautious amid rising global tensions.

 

Data docket: the Richmond Fed is expected to release manufacturing index data at 10 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -1.39% DOWNSIDE in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.95% DOWNSIDE in Tuesday’s pre-open

 

Henry’omics:

Is “our’ universe burning in market hell for the lack of support, confidence in their newest bottoms?

Investor focus is largely attuned to developments in Saudi Arabia, after the country confirmed Jamal Khashoggi, a journalist and critic of the Saudi regime, was killed in the country's consulate in Istanbul, Turkey.

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

 

From Monday’s night’s newsletter: “another ugly sector session, even I was blindsided. The sector needs to stabilize before investors hurdle the lack of support and confidence. Low volume exaggerates the downward slide as any expectation has been shattered. Big issue, many investors have been ignoring the vulnerability of the sector.”

  • The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of +1.29% after 4 negative sessions out of 5!
  • In 16 sessions in October – there were 13 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

 

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

Equities that were up yesterday and showing signs of life:

  • IONS (+$1.51), SLDB (+$0.70), GBT (+$0.67), AXGN (+$0.64), BMRN (+$0.31),
  • RGNX (+$0.29), BLFS (+$0.27), STML (+$0.07), BOLD (+$0.03) and AGTC (+$0.01)

Alnylam Pharmaceuticals (ALNY) closed down -1.70 to $74.95 with 697.1 K shares traded (3 month average = 942.6 K shares) and has a negative -$0.72 or -0.96% indication – SELL;

Athersys (ATHX) closed down -$0.01 to $2.02 with 400.9 K shares traded (3 month average = 568.7 K shares) and a negative -$0.02 or -0.99% aftermarket indication – SELL;

CRISPR Therapeutics (CRSP) closed down -$0.57 to $35.47 with 724 K shares traded (3 month average = 1 M shares> and had a negative -$0.34 or -95% aftermarket indication – SELL;

Spark Therapeutics (ONCE) closed down -$1.97 to $45.79 and has a positive +$0.12 or +0.27% aftermarket indication – BUY;

Sangamo Therapeutics (SAGE) closed down -$0.83 to $13.06 and has a positive +$0.13 or a 1% aftermarket indication – BUY;

Sage Therapeutics (SAGE) closed down -$4.44 to $117.88. SAGE has a 52 week change of +98.35% with a 10.91% short % of September’s float versus a previous month’s 3.53M shares <August>. The last time I saw an even lower SAGE pricing was on 12/6/20117 <$91.90). October began at $138.90, September at $164.19, August at $147.98 and July at $157.59 - BUY

Verastem Oncology (VSTM) closed down -$0.05 to $5.64 with 2.77 M shares traded (3 month average = 3 M shares) and has a positive +$0.02 or a +0.35% aftermarket indication – BUY;

Intrexon (XON) closed down -$0.34 to $13.61 with 1.35 M shares traded (3 month average = 1.34 M shares) and has a positive +$0.08 or a +0.59% aftermarket indication – 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.