July 24, 2019 9:13am
If tech is coming under attack by the DOJ, shouldn’t biotech be a safer haven even with their risk factors?
Pre-open indications: 2 BUYs and 2 SELL
News: Pluristem (PSTI) announced a one-for-ten reverse split of its common shares and be effective as of market open on 7/25/19 on NASDAQ. It usually causes yet another spiral and it’s a BAD practice to “screw” shareholders.
It's a daunting task to understand risk, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!
I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks.
Dow futures are DOWN -0.37% (-100 points), S&P futures are DOWN -0.28% (-9 points) and NASDAQ futures are DOWN -0.52% (-42 points)
U.S. stock index futures were lower as investors keep a close eye on U.S.-China trade talks and corporate earnings;
European stocks slipped into negative territory, while bracing for a dovish outcome from the European Central Bank’s (ECB) upcoming monetary policy meeting and the pan-European Stoxx 600 fell -0.2% by mid-morning;
Asia Pacific stocks gain amid US-China trade developments; only South Korea fell
Data docket: manufacturing and services PMIs at 09:45 a.m. ET and new home sales at 10:00 a.m. ET.
Flimsy, floppy – find me words for these markets.
These past months of the RegMed sector have been “eye-openers” because when you are in the middle of it, you get up every day and struggle with the pricing “calamities” within the sector.
One day of ups after deep diving sessions only begets another dump; but, they are becoming more repetitious!
So, when does the roller coaster stop – after Q2 results have reset bottoms for relief rallies?
The RegMed sector has struggled to hold their 50 and 200 day averages – a big disconnect.
There are just … too many negatives in technical dislocations.
One day it feels like ‘our’ universe is going to break out, and the next day it feels like it's hanging by a thread.
Resistance levels are tough to overcome … as one company “sneezes” other sector participants’ catch a cold and the whole sector gets infected.
In-person talks between China and the U.S. would start Monday as U.S. negotiators headed to China. The U.S. delegation will be led by Trade Representative Robert Lighthizer and will be in China through Wednesday, according to the report < Bloomberg News>.
From Tuesday’s evening post, “the sector is locked away in the bottom, again. All about volatility, uncertainty or risk related to the size of changes in a security's value; which is unpredictable and has a tendency of evaporation or an appearance.”
- The NASDAQ was up +47.27 or +0.58% to 8,251.40;
- The close was negative with an A/D Line of 19/23 and 1 flat and 2 acquired;
- The range of the 19 upside was +0.05% (VCEL) to +4.15% (XON) while the 23 downside ranged from -0.30% (HSGX) to -8.12% (KOOL);
- 2 out of the 19 upside had higher than the 3 month average volume;
- 8 out of the 24 downside had higher than the 3 month average volume;
- The IBB closed UP +0.26% while the XBI closed down -0.68%
Q3/19 so far: there were 6 positive, 1 holiday and 10 negative closes;
Companies in my headlights – It’s your decision; I provide an idea and context:
- uniQure (QURE)
- Sage Therapeutics (SAGE)
- BioLife Solutions (BLFS) with a $2.32 or +12% premium in three(3) sessions;
- ReNeuron (RENE.L) with a -$1.90 pre-market indication
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.