Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open: getting a handle on the sector’s fallout

October 24, 2018 7:32am

We will be still facing the shifting sands of share pricing

The disregard of fundamentals in these past weeks does not improve our view of the short-term

While damage to shareholder value is retrievable over time; suspicion lingers on risk, volatility and liquidity

Pre-open indications: 1 BUY and 6 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 lower

Dow futures are DOWN -0.35% (-88oints) and NASDAQ futures are DOWN -0.52(-37oints)

U.S. stock index futures indicated a weak start to the trading day …

European stocks were higher, as investors monitored a fresh batch of economic data and a flurry of corporate earnings results.

Asian markets ended mixed, following a turbulent trading session where stocks seesawed between gains and losses.

Data docket: data points expected on Wednesday morning. At 7 a.m. ET, MBA mortgage applications are expected, followed by the FHFA House Price Index at 9 a.m. ET, a PMI composite flash at 9:45 a.m. ET, new home sales numbers at 10 a.m. ET and the Beige Book at 2 p.m. ET.

Today’s indications:

The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.59% DOWNSIDE in Wednesday’s pre-market;
The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -0.34% DOWNSIDE in Wednesday’s pre-market;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.49% DOWNSIDE in Wednesday’s pre-open

Henry’omics:

Sector equities have been on a wild ride, yet expressed SOME (if not little) empathy for investors by yesterday’s increase in the Advance/Decline Line (A/DL) of

Yesterday’s advance/decline line scenario of 45 covered companies:

The open was negative with an A/DL of 6/38 and 1 flat;
The mid-day was negative with an A/DL of 25/19 and 1 flat;
The close was negative with an A/DL of 21/23 and 1 flat;

Investors … WAIT before re-entering buying into sector equities; GRAVITY is STILL a force in this market!

Algorithms, algorithms make me a rule as you already made many a fool!

There will be some equity bursts out of the gate but, I would NOT trust any of them until after the mid-day!

From Tuesday’s night’s newsletter: “

The iShares NASDAQ Biotechnology (IBB): a week’s history lesson; for a five session aggregate of -5.02% after 5 negative sessions out of 5!
In 17 sessions in October – there were 14 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:

Alnylam Pharmaceuticals (ALNY) closed up +$1.65 to $76.60 with 1 M shares traded after Monday’s -1.70 to $74.95 with 697.1 K shares traded (3 month average = 942.6 K shares) and has a negative -$0.32 or -0.42% indication – Maintaining SELL;

Athersys (ATHX) closed down -$0.05 to $1.97 with 502.9 K shares traded -$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 – Maintaining SELL;

BioLife Solutions (BLFS) closed down -$0.20 to $12.48 with 196.7 K shares traded <3 month average = 316 K shares traded> after Monday’s $12.68, Friday’s $12.41 and last Thursday’s $12.73 and the previous Wednesday’s $13.26. BLFS has a 52 week upside of $83.77% and a negative -$0.34 or -2.73% aftermarket indications – SELL;

Bluebird bio (BLUE) closed up +$0.89 to $118.24 with 1.098 M shares traded <3 month average = 685 K shares traded> and a negative -$0.74 or -0.63% aftermarket indication after Monday’s $117.35, Friday’s $120.70, Thursday’s $122.14 and last Wednesday’s $126.77 – SELL;

CRISPR Therapeutics (CRSP) closed down -$0.45 to $35.02 with 1.17 M shares traded after Monday’s -$0.57 to $35.47 with 724 K shares traded (3 month average = 1 M shares> and had a negative -$0.02 or –0.06% aftermarket indication – Maintaining SELL;

Sangamo Therapeutics (SAGE) closed up +$0.34 to $13.40 with 1.5 M shares traded after Monday’s -$0.83 to $13.06 with 2.16 M shares traded <3 month average = 2.271 M shares> and has a positive +$0.38 or a +2.84% aftermarket indication – Maintaining BUY;

Sage Therapeutics (SAGE) closed up +$4.80 to $122.68 with 362.6 K shares traded after Monday’s -$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. The aftermarket indication is a negative -$1.31 or -1.06% – BUY to SELL;

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.