July 12, 2019 7:55am

Low volume, volatility and complacency infect the sector as Q2 spending and earnings pre suppose quarterly results

There have been 2 positive, 1 holiday and 6 negative closes in July, so far

Pre-open Indications:  Never trust a Friday

The sector is what it is, until it isn’t and even then it doesn’t seem to be…


 

A daily analytic discipline is constructed by period updates and specific warnings of emerging situations and issues

 

Dow futures are UP +0.29% (+78 points), S&P futures are UP +0.18% (+6 points) and NASDAQ futures are also UP +0.17% (+14 points)

 

Futures on the DOW, S&P and NASDAQ were slightly higher,

European stocks traded higher as investors reacted to new Chinese trade data with the pan-European Stoxx 600 climbed 0.2% by mid-morning,

Asia stocks were mostly higher after data showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period,

 

Data docket: producer price index data (PPI) and core PPI for June at around 8:30 a.m. ET.

 

Henry’omics:

The cell therapy revolution is fading and NEEDs to brought back to visibility; gene therapy is rolling yet, questions on treatment pricing “hounds” share values!

Who says it is time to invest, I differ – the investment opportunity is there, some have peaked-out, some are just held at the gate of pending clinical results and the last some – are just downright a wasteful investment!

Federal Reserve Chairman Jerome Powell suggested on Thursday that the U.S. central bank has room to ease monetary policy at its next meeting. Powell’s comments came during his second day of testimony before Congress <CNBC>.

By the first week of August and possibly earlier, we’ll be knee-deep in earnings. Until then, we could be possible to see a few new highs for the big U.S. indexes and a number of my 45 covered companies however, we should NOT, and I mean NOT bask in the afterglow of a dovish Fed.

As I had stated, “Healthcare stocks were mixed after the Trump administration withdrew a rule that would kill rebates. Shares of pharmacy benefit managers gained as the news meant these companies would continue to benefit from after-market discounts from drug makers. Health insurers and drug distributors also rose.”

From Thursday’s post, “Insight about share pricing is about understanding perception. It’s not hard to be right so often … one of my focuses is 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.”

  • The NASDAQ was down -6.49 points or -0.08% to 8,195.04
  • The close was negative with an A/DL of 14/26 and 3 flats and 2 acquired;
  • The range of the 14 upside was +0.11% (RGNX) to +12.81% (ONVO) while the 26 downside ranged from -0.05% (GBT) to -11.82% (RENE.L);
  • 3 out of the 14 upside had higher than the 3 month average volume;
  • 5 out of the 26 downside had higher than the 3 month average volume;
  • The iShares NASDAQ Biotechnology (IBB) indicator: Thursday closed down -1.47% after Wednesday’s -0.28% following Tuesday’s +1.02% and Monday closed down -1.36%;

 

Q3/19 so far:

  • there were 2 positive, 1 holiday and 6 negative closes;

 

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

Never trust a Friday, after volatility, low volume and the lack or ingredients of sentiment – it’s just trading for the sake of a trade!

 

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.