February 12, 2019 7:53am

That is only one part of finding the “grail”, some of the realities are …

Money – capital and market access, incorporated with regulatory policy and NEVER forget, enlightened management who tactically approach a strategy to achieve the drug store counter

Pre-open indications:  I am keeping my hands folded; what materializes in today’s market … happens and will be sold-off by week’s end

 

Ask yourself, do you know why you own it? What are the catalysts? What's the pipeline look like? Do you understand the CEO's vision and how many different “fallbacks” it has; so if one goes wrong it's not the end of the world?

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

U.S. stock index futures point to serious gains

Dow futures are UP +0.87% (+217 points) and NASDAQ futures are UP +0.94% (+65 points)

 

Futures point to a triple-digit gain after tentative deal to avoid government shutdown;

European markets higher as US-China trade talks continue; U.K. Prime Minister May will update lawmakers on the latest Brexit developments;

Asian markets are mostly higher;

 

Data docket: the NFIB Small Business Optimism Index for January is expected to be released at around 6:00 a.m. ET. Job Openings and Labor Turnover Survey (JOLTS) figures for December will be published later in the session.

 

Tuesday’s indications in the pre-market:

  • 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 POSITIVE +0.7% UPSIDE

 

Henry’omics:

Market sentiment got a boost amid news U.S. lawmakers had secured a tentative deal on border security funding on Monday. The drafted agreement — which congressional aides said did not contain funds for President Trump's border wall — could help to prevent another partial government shutdown due to begin from Saturday <CNBC>.

Monday’s evening post, “investing in the sector is an opportunity and a risk; it’s hard to think of being invested for years to realize any gain while share pricing is measured in days, weeks, quarters and ultimately - news’ flow. Sustainable is not an oft-used term.”

Volume stays low:

•             7 out of the 30 upside had higher (than the 3 month average) volume

•             1 out of the 14 downside experienced greater volume (than the 3 month average)

 

 

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

Today’s relevancy … Ben Graham used to talk about the stock market being a cross between a voting machine and a weighing machine.

  • During “earning’s” season, traders vote by buying and selling shares, and in the short run, the trades happen at the levels dictated by whether the buyers or sellers are motivated by meeting “street” expectation  versus LPS (loss-per-share) as compared to net income.

That is the voting machine of this sector. In the short run, values can be pretty senseless if one side or the other decides to be aggressive in their buying or selling.

 

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.