July 16, 2019 7:12am

Dependent of this, too close to that or just preparing for the future that hasn’t shown its face

Pre-open Indications: Overbought or oversold – just pick one for an hour or a session

That’s earnings season … who and what will drive a beat?

Opinion extraction, summarization and tracking are three important techniques for understanding sentiment.

 

Just like algorithms, rules-are-what-we-make-of-them. The take-away, don’t dwell on what’s happened but, learn the lesson of timing – Q2 LPS (loss-per-share) results are being “formulated”.

 

Dow futures are DOWN -0.05% (-15 points), S&P futures are DOWN -0.02% (+1 points) and NASDAQ futures are UP +0.01% (+1 points)

 

U.S. stock index futures were mixed ahead of earnings reports from healthcare companies (J&J to start);

European stocks were muted as traders monitor earnings reports with the pan-European Stoxx 600 hovering below the flat Line by mid-morning;

Asia Pacific stocks were mixed as a few slipped yet, Hong Kong advanced

 

Data docket: None, all about earnings

 

Henry’omics:

Earnings season gets underway in earnest Tuesday with Johnson & Johnson; however, the outlook for this earnings season is in line with the estimates and a “beat” although guidance is increasing and a strong pipeline.

Gains could be tepid as volume remains low!

One of my issues, the record highs represent a modest continuation of a market rally triggered last week after Fed Chair Powell indicated during congressional testimony that an interest rate cut may be on the horizon.

 

From Monday’s post, “a new week’s session flutters with low volume; the sector’ upside flips as the NASDAQ slips from Friday’s swing with a new all-time high. Caution pervades as earning’s season begins to ramp-up, maintain a wait-and-see attitude.”

  • The close was positive with an A/DL of 26/15 and 2 flats and 2 acquired;
  • The range of the 26 upside was +0.12% (RARE) to +11.79% (CLBS) while the 15 downside ranged from -0.05% (ONCE) to -4.88% (ATHX);
  • 3 out of the 26 upside had higher than the 3 month average volume;
  • 3 out of the 15 downside had higher than the 3 month average volume;
  • Monday the IBB closed up +0.53% while the XBI also closed up +0.36%
  • Q3/19 so far: there were 3 positive, 1 holiday and 7 negative closes;

 

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

Oversold:

  • Stemline (STML) after Monday’s -$-$0.60 and Friday’s -$0.80)

Overbought:

  • Fate Therapeutics (FATE +$0.60);
  • bluebird bio (BLUE +$3.10);
  • Editas Medicine (EDIT +$0.45)

 

 

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.