November 15, 2018 8:05am
The more the oversold become, the quicker the trading response
However, it’s trashing future investment – i.e. trust of investors, funds and even traders
Equities are reduced to “short” trading vehicles not, near or long-termed investment candidates
Quarterly results: Mesoblast (MESO and ASK: MSB)
I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths – it’s more than opinion, the facts and truth need to be recognized!
A trusted source of factual reporting!
U.S. stock index futures are up yet, shifting downward
Dow futures are UP +0.20% (+54 points) and NASDAQ futures are UP +0.55% (+38 points)
U.S. stock index futures pointed to a slightly higher open Thursday morning.
European stock indexes turned negative after U.K. Brexit minister Dominic Raab resigned from his post, piling yet more pressure on U.K. Prime Minister May.
Asian stocks were mostly higher on the back of an apparent improvement in market risk sentiment after British Prime Minister May managed to persuade her cabinet to back her draft Brexit agreement.
Data docket: At 8:30 a.m. ET, weekly jobless claims numbers are expected, followed by retail sales and a Philly Fed manufacturing survey at the same time.
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating;
- The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE -0.43% UPSIDE;
- The Health Care Select Sector SPDR ETF (XLV) is a NEGATIVE -0.35% DOWNSIDE indicating
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.14% UPSIDE
I believe – and I have been wrong that – today is a buying opportunity for more than some (notice I did NOT say MANY) of MY covered equities.
Screen sector equities for multiple development compounds, solid cash positions, longer “runways”, lower quarterly or decreasing operational costs, clean balance sheets and a management team that communicates TO investors NOT AT them!
3 out of 6 might be right as I haven’t noticed the investor communication vehicle at its best – yet!
Reverse the lesson of Icarus and focus on another mythology beast – the Phoenix!
CAUTION is more than a buzz word!
From Wednesday’s night’s newsletter: “selling pressure that began in September continues as the IBB (-2.03%) dived, the Advance/Decline Line (A/DL – 7/36 and 2 flats) degenerated with truncated volume as conviction and confidence sought new bottoms.”
I also stated, “Investors should be tired of a sector that can’t keep its “pants” up; when was the last time, investors saw a substantial BUY by a CEO of its company stock while down. Share pricing deteriorates as CEO pay jumps to tech level pay-outs (at least they have revenues). What management services are we paying for – as share values continue to decline?”
Last night’s percentage (%) indicators:
- Review the range of the 7 upside from +0.16% (BCLI) to +9.08% (KOOL) while the 36 downside ranged from -0.2% (FIXX) to -11.94% (SGMO) with 2 flat closes (BSTG and RENE.L).
- 4 out of 7 of the upside had higher (than the 3 month average) volume
- 23 out of the 36 downside experienced greater volume (than the 3 month average).
The iShares NASDAQ Biotechnology (IBB) in a week’s history lesson; a five session aggregate of a negative -8.41% after yesterday’s -1.38% after 5 downside sessions out of 5!
- In 10 session in November – there were 3 positive closes, 1 neutral and 6 negative closes
- In 23 sessions in October – there were 17 negative closes and 6 positive sessions;
- In 19 sessions in September – there were 10 negative closes and 9 positive sessions;
- 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:
*** After a precipitous drops in value since the previous Thursday – set a stage for an UPSIDE bounce:
- Wednesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;
- Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flats;
- Monday closed NEGATIVE with 40 decliners, 4 advancers and 1 flat;
- Friday closed NEGATIVE with 39 decliners, 6 advancers and 0 flat;
- Thursday closed NEGATIVE with 26 decliners, 19 advancers and 1 flat;
The gene editing company posted revenue of $954,100 in the period. Its adjusted revenue was $954,000.
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.