August 13, 2019 7:37am
Futures are fluctuating while pointing to a sell-off although devaluation won’t be so deep – hopefully!
Sector sentiment is fragile yet, I feel a trading response is in order after two (2) deep down sessions
Remember, the “dog days” of August make investors sweat
Framing the week’s headlines, geo-political monetary disruptions, volatility as earnings slow down!
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether expectation of August and quarter’s (Q2) reporting initiate tumultuous value propositions.
Dow futures are DOWN -0.11% (-28 points), S&P futures are DOWN -0.08% (-3 points) and NASDAQ futures are also DOWN -0.12% (-9 points)
US futures point to a … slightly lower open, adding to Monday’s sell-off;
European stocks … also trade lower amid global political uncertainty with the pan-European Stoxx 600 slipping -0.7% by late morning;
Asia Pacific stocks decline as tensions in Hong Kong remain high with the MSCI Asia ex-Japan index shed -1.23%;
Data docket: the National Federation of Independent Business small business optimism survey for July will be released at 6 a.m. ET. Key annualized and monthly Consumer Price Index (CPI) and core CPI data for July will be released at 8:30 a.m.
Market focus is largely attuned to selling in regional markets, after protests in Hong Kong and a crash in the Argentine peso drove investors to perceived ‘safe haven’ assets…
We won’t see today clearly unless we understand yesterday … Monday and Friday’s lack of luster!
Also, August is usually when no major news events are whipping the sector – “our” universe; so when global shocks do happen, It makes bad “positions” even worse by overstating any iteration of a sell-off!
There is STILL ... a $BUCK$ to be made!
From Monday’s evening post, “another spiral; my continuous question, “where and what are the BUY catalysts, just being oversold is for trader’s play not investor inter-action. Monday the close was negative with an A/D Line of 13/29 and 1 flat and 2 acquired; volume and percentage (%) movers were low. As I also stated, “be ready for some of the upside to be depreciated by profit taking and many answered the call - again.”
• The NASDAQ was down -95.73 or -1.20% to 7,863.41;
• The IBB closed down -1.25 % while the XBI closed down -1.88%
• The close was negative with an Advance/Decline (A/D) line of 13/29 and 1 flat and 2 acquired;
• The range of the 13 upside was +0.12% (GBT) to +19.19% (AXGN) while the 29 downside ranged from -0.56% (IONS) to -8.82% (PSTI);
• 7 out of the 13 upside had higher than the 3 month average volume;
• 7 out of the 29 downside had higher than the 3 month average volume;
August has 3 POSITIVE and 5 NEGATIVE closes, so far
Companies in my headlights – It’s your decision; I provide an idea and context:
*** Hope is NOT measureable, yet I see a few of the oversold being … recognized; while many will remain stuck in the mud of under-appreciated; notice I didn’t say undervalued ***
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.