November 16, 2018 8:12am
There is confusion as the focus is short-term with some or none near or long-term expectation
Risk is not always diminished as time rolls forward
There is just too much fluctuation and investors get tired and more skeptical of risk adjusted prognoses
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 motivating a low and lower open
Dow futures are DOWN -0.57% (-143 points) and NASDAQ futures are DOWN -1.18% (-82 points)
U.S. stock index futures indicated a slightly lower open as investors look ahead to fresh economic data and monitor political developments overseas.
European stocks were higher, as investors closely monitored the ongoing political turmoil in the U.K.
Asian markets were mixed on the back of fresh uncertainties emerging from the U.K. overnight after multiple important ministers resigned from Prime Minister Theresa May's government.
Data docket: Industrial production numbers are expected to be released at 9:15 a.m. ET, followed by a Quarterly Services Report at 10 a.m. ET, a Kansas City Fed Manufacturing Index at 11 a.m. ET and the Baker-Hughes Rig Count at 1:00 p.m. ET.
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.14% UPSIDE;
- The SPDR S&P Biotech ETF (XBI) is NOT indicating;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating
- The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.28% DOWNSIDE
I am still CAUTIOUS as to sector share pricing ‘streaks”.
We are almost through my set of quarterly results – 37 have reported of 45 covered; for many “runways” are stretched but, there are few that are on the edge of extinction!
The biggest threat to the current … share pricing … is that sentiment is dependent on trading as many institutional funds are not increasing their “participation” in these lowered prices.
They are just doing NOTHING … and are NOT to be blamed … what’s to make them increase their holding s … anticipated events that seem to go against the grain!
And I am usually an OPTIMIST but, do have a contrarian muscle structure – it responds faster in this market.
From Thursday’s night’s newsletter: “rolling thunder of pricing after the session’s spits and spurts as IBB rallied +2.19% and Mesoblast (MESO +$0.17 b reported Q1/19 quarterly results.”
As I had also stated, “after a precipitous drops in value since the previous Thursday – set a stage for an UPSIDE bounce.”
Last night’s percentage (%) indicators:
- Review the range of the 33 upside from +0.50% (FIXX) to +35.66% (QURE) while the 12 downside ranged from -0.41% (MDXG) to -7.75% (CLLS) with 0 flat closes.
- 15 out of 35 of the upside had higher (than the 3 month average) volume
- 6 out of the 12 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 -3.52% after yesterday’s -8.41% after 4 downside sessions out of 5!
- In 11 session in November – there were 4 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:
*******I have an upside hang-over, the positive aspect felt great but … after October and November so far – I’m distrusting everything! ********
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.