April 18, 2019 8:12am
Given the lack of news, today could be a good opportunity for investors to pick up shares at these discounted pricings and I had said that yesterday and was wrong – is it good to be early, depending on the price!
Pre-open indications: 2 BUYs, 1 SELL and 3 TRADEs
Yesterday’s investor’s tin could be today’s gold!
Investors are held captive by management’s annual meeting proxies and avoidance of shareholder approvals!
Dow futures are DOWN -0.08% (-20 points), S&P futures are DOWN -0.03% (-1 point) and NASDAQ futures are DOWN -0.07% (-5 points)
U.S. stock index futures fell on Thursday, the last trading day of the week, after the release of weak economic data out of Europe;
European markets were lower after PMI data signaled a stagnating economy;
Asia-Pacific markets closed lower with Indonesia’s benchmark index bucking the overall trend as stocks jumped on election hopes while investors looked to signs of progress in U.S.-China trade talks.
Data docket: retail sales at 8.30 a.m. ET, as well as weekly jobless claims.
- Investors will also be keeping an eye on any further developments from the U.S. Federal Reserve. Atlanta Fed President Raphael Bostic will be speaking at noon.
Thursday’s ETF indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.07% UPSIDE;
The SPDR S&P Biotech ETF (XBI) is NOT indicating;
The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.16% DOWNSIDE;
The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.19% DOWNSIDE;
It’s time … for the downside to be recognized as oversold and rotated to the upside!
Wednesday night, the IBB was down -3.89% after Tuesday’s -1%, Monday’s -0.50% following Friday’s -0.76% and last Thursday’s -1.70% - that’s -7.85% for the week - time for an upswing but, I did say that yesterday!
Thursday’s moves follow a weak session in the previous day, as the major indexes failed to gain traction amid weakness in health-care stocks.
The health-care sector fell 2.9% on Wednesday and is down more than 4% this week as investors worry over proposals pushed by Democratic lawmakers <CNBC>.
With more volume and momentum ... the sector COULD move to the upside!
From Wednesday’s closing bell post, “a sentiment lighting strike herded the sector to a newer bottom with “our” universe remaining more oversold than it has been. Equities were stampeded by sentiment, the lack of trust and algorithms but, at least I allocute when I miss the forecast! The problem of political and regulatory uncertainty worsened conviction as the IBB fell -3.89%.”
I also stated, “Short-term investors looking to pick up oversold shares should consider this a buying opportunity … even if it is EARLY!!”
- Range of the 7 upside was +0.04% (FIXX) to +4.22% (HSGX) while the 36 downside ranged from -0.13% (ONCE) to -12.74% (IONS).
- 2 out of the 7 upside had higher (than the 3 month average) volume
- 26 out of the 36 downside experienced greater volume (than the 3 month average)
- In April, there has been 6 positive and 7 negative closes – so far;
- In March’s 21 sessions, there were 7 negative and 14 positive closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
Alnylam Pharmaceuticals (ALNY) closed down -$3.67 to $84.89 after Tuesday’s +$0.03 to $88.56 after Monday’s -$1.28 to $88.53 following news of positive complete results from the ENVISION phase III study of givosiran, an investigational RNAi therapeutic targeting aminolevulinic acid synthase 1 (ALAS1) for the treatment of acute hepatic porphyria (AHP) – Maintaining BUY;
CRISPR Therapeutics (CRSP) closed down -$2.65 to $36.43 after Tuesday’s +$1.93 to $39.08, Monday’s -$0.76 to $37.15, Friday’s +$0.40 to $37.91 and last Thursday’s $37.51 with NO indication in the aftermarket. Oversold – TRADE;
Editas Medicine (EDIT) closed down -$1.50 to $25.72 after Tuesday’s +$0.68 to $27.22, Monday’s +$0.45 to $26.54, Friday’s +$0.60 to $26.09 and last Thursday’s -$2.18 to $25.49 with No aftermarket indication. Oversold – TRADE;
Intellia Therapeutics (NTLA) closed down -$1.18 to $16.21 after Tuesday’s +$0.54 to $17.39, Monday’s -$0.16 to $16.86, Friday’s-$0.16 to $17.03 and last Thursday’s -$0.59 to $17.19 with NO aftermarket indication. Oversold – TRADE;
ReNeuron Group (AIM: RENE) closed up +$3.50 to $230.00 after Tuesday’s -$9.00 to $228.00, Monday’s flat at $237.00, Friday’s -$4.00 to $237.00 and last Thursday’s +$25.00 to $241.00 and is “pegged” to the downside (-$1.25) following news of a partnership with Forsun Pharmaceuticals – SELL;
Verastem Oncology (VSTM) closed down -$0.23 to $2.23 after Tuesday’s flat at $2.37,Monday’s -$0.26 to $2.37, Friday’s -$0.09 to $2.63 following last Thursday’s-$0.14 to $2.72 and has a positive +$0.07 or +3.14% upside – Maintaining 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.