March 19, 2019 7:50am
Momentum is getting edgy, resistance is wobbly and sector breadth is weakening
Thus strength is a commodity to be profited from …
Monday (3/18) and last Friday closed up, Thursday was down while Wednesday, last Tuesday, the previous Monday (3/11), Friday and Thursday closed up
Pre-open indication: 1 BUY, 4 SELLs and 3 TRADEs
I focus on 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.
Skim if you can trim, buy if it will fly and sell if compelled!
Dow futures are UP +0.40% (+105 points), S&P futures are UP +0.39% (+11 points) and NASDAQ futures are UP +0.37% (+28 points)
U.S. stock index futures traded higher yet are slipping buttressed by expectations that the Fed meeting will yield a dovish tone;
European markets slightly higher ahead of Fed meeting as the third Brexit vote is blocked;
Asia markets are mixed, higher and slightly lower ahead of Fed meeting
Data docket: January factory orders numbers are due at 10 a.m. ET.
Tuesday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is NOT indicating;
The SPDR S&P Biotech ETF (XBI) is indicating is indicating a POSITIVE +0.15% UPSIDE;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.5% UPSIDE;
Market focus is largely attuned to central bank expectations, with the Fed due to kick-off its two-day policy meeting on Tuesday.
From Monday’s closing bell post, “through the forest primeval; the murmuring pines and the hemlocks, Bearded with moss, and in garments green, indistinct in the twilight. Where is the thatched-roofed” portfolio and HOW far away is it and WHY can’t we see it - forget the view; survival is tied to autonomy and control.”
- Range of the 27 upside was +0.12% (NTLA) to +18.49% (MESO) while the 17 downside ranged from -0.10% (OSIR) to -5.78% (BTX);
- 13 out of the 27 upside had higher (than the 3 month average) volume
- 5 out of the 17 downside experienced greater volume (than the 3 month average)
- In March’s 12 sessions, there were 3 negative and 9 positive closes;
- Monday’s IBB was down (-0.31%), Friday’s was up (+1.07%), Thursday’s was down (-0.22%) while last Monday through the previous Wednesday were up (+2.14, +0.82% and +1.31%)
Sector focus has a FOG (in MY eyes) surrounding it … as I know it wants to go up, but, resistance is STRUGGLING!
Companies in my headlights – It’s your decision; I provide an idea and context:
BioLife Solutions (BLFS) closed up +$1.81 to $20.51 and has a negative -$0.01 aftermarket indication. Traders are selling as the share price has sky rocked from $16.34 since 3/8 – that’s seven (7) sessions – SELL;
Verastem Oncology (VSTM) closed up +$0.27 to $3.38; finally we are seeing upside after a bumpy ride since 3/1’s $3.10 after 3/8’s low of $2.79, 2/1’s $3.22 and 1/2’s $3.61 – the problem is the Icarus effect – into the “sun” of strength as well as a negative -$0.02 or -0.59% aftermarket indication – SELL;
CRISPRS Therapeutics (CRSP) closed down -$0.76 to $37.88 with no aftermarket indication but, a trading vehicle moniker – TRADE;
Editas Medicine (EDIT) closing down -$0.32 to $23.97 with no aftermarket indication but, another trading vehicle – TRADE;
Intellia Therapeutics (NTLA) closing up +$0.02 to $16.71 also with no aftermarket indication yet, they are STILL stuck as a trading vehicle – TRADE;
Mesoblast (MESO) closed up +$0.79 to $5.17 with solid volume of 339.9 K shares (3 month average =45.6 K shares> and with a premium of a seesawing six (6) sessions since 3/11‘s $4.22. Also MESO started March at $4.33, February at $4.44 and January at $4.49 with a BIG debt package – SELL;
Intrexon (XON) close up +$0.14 to $5.62. AquaBounty Technologies, a majority owned sub is going public with H.C. Wainright, more cash for the till - BUY
ReNeuron (RENE.L) closed up +$6.00 to $76.00 on news of its P1/2 trial – and is seeing a -$0.12 or -0.16% decline in our markets –SELL;
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.