December 18, 2018 7:58am
Like these past days in the market and sector; the phoenix dies in a show of flames and combustion, although there are other sources that claim that the legendary bird dies and simply decomposes before being born again
I’d be poking among the debris of the oversold and BUYING strong cash positions and solid runways!
Pre-open indication: 4 BUYs and 3 TRADEs
I answer one question, in which company should investors put, keep and commit their money!
In compiling my indication signals, specific knowledge of the sector and its practices as to lessons learned. It’s important for investors to identify and determine which indication is actually performance based.
U.S. stock index futures are looking up
Dow futures are UP +0.50% (+118 points) and NASDAQ futures are UP +0.64% (+42 points)
US futures point to a slight rebound when markets open on Tuesday
European markets open lower amid intensifying concerns over global growth
Asian equities were lower following the overnight sell-off sparked by concerns of a slowdown in the global economy. A key speech by Chinese President Xi Jinping did not help lift market sentiments in Asia.
Data docket: The Fed is widely expected to hike its benchmark overnight lending rate for a fourth and final time of 2018 when it concludes a two-day policy meeting on Wednesday. While fears of rising interest rates have spooked markets throughout the year, such concerns have heightened over the past month as inflation and growth expectations recede.
- The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.7% UPSIDE
- The SPDR S&P Biotech ETF (XBI) is NOT indicating
- The Health Care Select Sector SPDR ETF (XLV) is indicating a POSITIVE +0.53% UPSIDE
- The iShares Russell 2000 (IWM) is indicating a POSITIVE +1.08% UPSIDE
U.S. futures pointed to a recovery for the three major stock indexes at Tuesday's open after the market rout a day earlier.
Sector equities are still not showing the ‘panic’ selling that’s associated with market bottoms!
Downside volatility must be overcome as the oversold have stimulated a lack of confidence and as a result sentiment resides in the “crapper”
From Monday night’s post, “escaping the downside in this market is pure luck even for those equities with news! Few equities escaped unscathed with just ten (10) trading sessions left for stocks in 2018
Last night’s percentage (%) indicators:
- Review the range of the 9 upside from +0.20% (RGNX) to +3.81% (BLCM) while the 34 downside ranged from -0.50% (ONVO) to -14.63% (BTX) with 2 flat close (RENE.L and VCEL).
- 6 out of the 9 upside had higher (than the 3 month average) volume
- 14 out of the 34 downside experienced greater volume (than the 3 month average).
Quarterly history lesson:
- In 10 sessions in December – there were 4 positive close; 1 market close and 5 negative close;
- In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
- In 23 sessions in October – there were 17 negative closes and 6 positive sessions;
Companies in my headlights – It’s your decision; I provide an idea and context:
Applied Genetic Technologies Corporation (AGTC) closed down again -$0.14 to $3.11 after Friday’s -$0.22 to $3.25,Thursday’s -$3.09 to $3.47 and Wednesday’s +$0.45 to $6.56; reporting Biogen’s (BIIB) collaboration. AGTC still has $105 M in cash and there is $6.81 in total cash per share. BIIB has already paid out around $146 million during the collaboration and will contribute funding through to March 8 of next year, when the contract comes to an end. For the record, AGTC has competition looking for the XLRP program, as U.K. biotech Nightstar (NITE) recently posted positive results in a P1/2 trial of its NSR-RPGR gene therapy candidate. Maintaining BUY;
BioLife Solutions (BLFS) closed down -$0.49 to $10.60 after Friday’s $11.09 and Thursday’s $11.07 and Wednesday’s $12.01 – OVERSOLD - BUY;
They’re a tracking stock for down sessions; they’re juice for the upside:
CRISPER Therapeutics (CRSP) closed down again -$1.11 to $31.58 after Friday’s -$0.75 to $32.69 and has a negative -$0.18 or -0.57% aftermarket indication – TRADE;
Editas medicine (EDIT) closed down again -$0.81 to $27.64 after Friday’s -$0.49 to $28.45 - TRADE;
Intellia (NTLA) closed down again -$0.46 to $15.27 after Friday’s -$0.09 to $15.73.– TRADE;
Regenxbio (RGNX) closed up +$0.09 to $45.81 after yesterday’s “tempest”. I’d be looking to re-gain most recent heights of $ 53.43 to $56.14 – BUY;
Vericel (VCEL) closed FLAT at $17.10 on an ugly day (with ½ <590.1 K shares traded versus the 3 month average of 1.02 M shares> and for three sessions after last Wednesday’s $17.78; Expecting a rebound after indecision versus a steep decline like its peers – 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.