July 10, 2019 8:10am

Pricing sustainability is downbeat as volatility trumps risk

Pre-open Indications:  1 BUY and 2 SELLs

The RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell.  These same buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

 

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 DOWN -0.19% (-51 points), S&P futures are DOWN -0.19% (-5 points) and NASDAQ futures are also DOWN -0.17% (-13 points)

 

Futures on the Dow, S&P and NASDAQ are all lower on Wednesday;

European stocks trade lower as investors await U.S. Fed Chairman Powell testimony as the pan-European Stoxx 600 slipped 0.3% midway through the morning session;

Asia Pacific stocks mostly edged up (Shanghai composite fell) as investors awaited Powell comments for possible clues on the central bank’s next move on interest rates.

 

Data docket: weekly jobless claims were expected at 7 a.m. ET.

 

Henry’omics:

Index futures were lower Wednesday morning, falling for a fourth straight session, as market participants eagerly anticipated the testimony of Fed Chairman Jerome Powell, whether he will confirm or confound expectations for U.S. policy easing this month.

  • However, Powell is also likely to keep the markets — and the White House — guessing about how soon and how deep the Fed intends to trim rates, when it meets at the end of July. The prevailing view, priced into the futures market, is for a 100% chance of a quarter point rate cut July 31.

NO “real” news from our universe of 45 companies.

Trader’s trade, investors are complacent and institutions are holding as Q2 LPS (loss-per-share) earnings releases approach!

 

From Tuesday’s post “: the sector flips, flops and drops; while the NASDAQ rose +0.54% (+43.35 points) and the IBB rebounded +1.02% from a negative -1.36% on Monday. Like I stated, “fundamentals remain challenged”; points of concern, expectations for this earnings (Q2) season are downbeat”

  • The NASDAQ was up +43.35 points or +0.54% to 8,141.73
  • The close was negative with an A/DL of 13/29 and 1 flat and 2 acquired;
  • The range of the 13 upside was +0.28% (BLCM) to +11.10% (ADVM) while the 29 downside ranged from -0.17% (BLUE) to -5.71% (VSTM);
  • 7 out of the 13 upside had higher than the 3 month average volume;
  • 0 out of the 29 downside had higher than the 3 month average volume;
  • The iShares NASDAQ Biotechnology (IBB) indicator: Tuesday closed up +1.02% after Monday closed down -1.36%;

 

Q3/19 so far:

  • there were 1 positive, 1 holiday and 5 negative closes;

 

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

Adverum Biotechnologies (ADVM) closed down -$0.01 to $14.89 after Monday’s +$2.74 to $14.90. ADVM has seen a robust preliminary anatomical response, with no serious adverse events, from the first cohort of patients in the OPTIC P1 clinical trial. The 24-week data from the first cohort of patients with wet AMD treated with a single intravitreal injection of its novel gene therapy ADVM-022; the chart looks a little “spikey” – Maintaining SELL;

BioLife Solutions (BLFS) closed down -$0.06 after Monday’s +$2.50 to $18.21; however, in the all stock deal with SAVSU Technologies will deliver dilutionary affect – SELL;

ReNeuron (RENE.L) closed up +$15.00 to $255.00 after Monday’s +$10.00 to $240.00 on low volume (120.1 K versus the 3 month average = 258.9 K shares). RENE.L has a timing differential with the US market of +$5.00 in the pre-market – 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.