January 17, 2019 8:08am

Where is new money, sitting on the sidelines watching the fall of sector stocks?

Pre-open indication: 1 BUY, 2 SELL and 2 TRADEs

One of my focuses is indication analysis. An indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation. The sole provision is that it provides insight to provide some vision into a likely course of action.

 

I answer one question, in which company should investors put, keep and commit their money!

 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

U.S. stock index futures fell to lows

Dow futures are DOWN -0.40% (-96 points) and NASDAQ futures are DOWN -0.35% (-44 points)

 

U.S. stock futures traded lower on Thursday amid a flurry of corporate results, worries over China's economy and Brexit uncertainty.

European markets edge lower after May survives no-confidence vote;

Asia markets struggle for gains despite strong US earnings; China concerns linger

 

Data docket: weekly jobless claims and Philadelphia Fed manufacturing figures are due at 8:30 a.m. ET.

 

Thursday’s indications:

The iShares Nasdaq Biotechnology (IBB) is NOT indicating

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 -0.06% DOWNSIDE

 

 

Henry’omics:

Investor sentiment continued uncertainty is weighted down by Brexit after British Prime Minister Theresa May's divorce deal was voted down by Parliament earlier this week, signs of weakness in China's economy and the continuing shut-down of the U.S. government.

My warning analysis is ringing; the bloodletting at the end of 2018 is that expectation had been diminished. JPM was quiet with little news flow, leading me to expect lower revenue and increasing LPS (loss-per-share) earnings.

Sector companies will be judged by guiding communication – which has been non-existent for most of ‘our” universe.

It’s time … if the sector wants to surge … after they report!

Closing post, “where is the buzz? Advancers of the Advance/Decline Line (A/DL) are slipping. I also stated,” Some of the issue is the LACK of news!”

 

Percentage (%) indicators:  thin

  • Review the range of the 23 upside from +0.08% (BLFS) to +8.07% (OSIR) while the 20 downside ranged from -0.02% (GBT) to -11.98% (AXGN) with 2 flat closes (AST and RENE.L).

Volume stat:  very low

  • 11 out of the 23 upside had higher (than the 3 month average) volume
  • 3 out of the 20 downside experienced greater volume (than the 3 month average) volume

Tracking the closes: 2 negative closes followed 5 positive sessions - troubling

In 11 sessions in January – there was 8 positive closes and 3 negative closes – so far!

 

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

AxoGen (AXGN) closed down -$1.99 to $14.62 and has a positive +$0.28 or +1.92% aftermarket indication. It’s oversold – BUY;

Osiris (OSIR) closed up +$1.09 to $14.59 on the basis of a settlement being reached on past ‘legal” issues related to its management. It’s lean but, a 10% or +1.44 premium in three 930 sessions – I’d SELL;

Stemline Therapeutics (STML) closed up +$0.11 to $10.05 after Tuesday down +$0.86 to $9.94 and comes out with an upsized 8.88 M share offering priced at $9.00. Post offering, I’d flip it – Maintaining SELL;

Editas Medicine (EDIT) closed down -$0.14 to $26.26 after Tuesday’s up +$1.41 to $26.40 after Monday’s -$1.21 to $24.99. There is a negative -$0.40 or -1.52% aftermarket indication – TRADE;

Intellia Therapeutics (NTLA) closed up again +$0.77 to $15.02 after Tuesday’s +$0.73 to $14.25 after Monday’s -$0.56 to $13.53. Frothy in this market says – TRADE;

 

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.