June 18, 2019 7:56am

Riding the upside trend, how safe is trading the highs higher?

Pre-open indications: 2 BUYs and 2 SELL

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes!

 

The take-away, don’t dwell on what’s happened and follow RMi’s lesson of investing in those who guide and then meet short-term expectation

 

Dow futures are UP +0.54% (+142 points), S&P futures are UP +0.58% (+17 points) and NASDAQ futures are also UP +0.91% (+69 points)

 

U.S. stock index futures were slightly higher, as market participants braced for the first day of the Fed’s interest rate meeting;

European stocks rebounded following a speech from EU Central Bank President Mario Draghi, which suggested that the ECB will provide more stimulus, either through new rate cuts or asset purchases, if inflation does not pick up;

Asian markets were mostly higher; Hong Kong’s Hang Seng index added 0.7% while only Japanese indexes slipped into the red.

 

Data docket: Market focus is largely attuned to the Fed; with policymakers set to begin a two-day meeting later on Tuesday; housing starts and building permits for May are scheduled for 8:30 a.m. ET.

 

Henry’omics:  

Futures on the S&P and NASDAQ were also seen higher. The Fed is expected to leave borrowing costs unchanged, despite fresh demands from President Trump to cut interest rates.

Begin the session with caution, think balloons rising higher but, as some point burst or deflate by pressure!

 

From Monday night’s post, “the sector rocks; however, this week is all about the Fed.”

  • Monday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);
  • The range of the 33 upside was +0.04% (PSTI) to +25% (VSTM +$0.35) while the 10 downside ranged from -0.11% (BLFS) to -20% (HSGX -0.059);
  • 10 out of the 33 upside had higher than the 3 month average volume;
  • 3 out of the 10 downside had higher than the 3 month average volume;
  • The iShares NASDAQ Biotechnology (IBB) indicator:  Monday closed up +2.96% after Friday closed down -0.93%,Thursday’s +0.75%, Wednesday’s +0.61% and last Tuesday’s -0.49%;

 

Q2/19 so far:

  • In June, there were 6 positive, 1 neutral and 5 negative close, so far;
  • In May, there were 14 negative, 1 holiday and 8 positive closes;
  • In April, there has been 10 positive and 11 negative closes;

 

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

BioLife Solutions (BLFS) closed down -$0.02 to $17.67 after Friday’s -$0.07 to $17.69, Thursday’s +$0.38 to $17.76,  Wednesday’s -$0.19 to $17.38 and last Tuesday’s-$0.58 to $17.57 even though BLFS has a 52 week change of +31.13%, and was added to the Russell 3000® Index –Maintaining BUY;

ReNeuron (RENE.L) closed down -$7.50 to $242.50 after Friday’s +$20.00 to $250.00, Thursday’s $230.00, Wednesday’s $232.00 and last Tuesday’s $245.00. RENE.L has been floating on the market’s downfalls with uplifts of being oversold; a time differential trading of a positive +$9.50 upside with a positive +$9.50 pre-market’s indication – SELL to BUY;

uniQure N.V. (QURE) closed up +$8.59 to $81.14 after Friday’s +$1.34 to $72.55 after a “run” of putting itself up for sale, take the money. QURE has a negative -$0.14 or -0.17% aftermarket indication – BUY to SELL;

Sage Therapeutics (SAGE) closed up +$5.52 to $179.78 after Friday’s $174.26, Thursday’s $175.84, Wednesday’s $168.73 and last Tuesday’s $169.60 – chart looks “toppy” – 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.