August 14, 2019 8:13am

After the U.S. bond market flashed a troubling signal about the U.S. economy.

Remember, the “dog days” of August make investors sweat and lately are very “sketchy”

LPS (loss-per-share) Q2 earnings’ results are still appearing

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 -1.43% (-377 points), S&P futures are DOWN -1.38% (-41 points) and NASDAQ futures are also DOWN -1.45% (-113 points)

 

Dow is falling after bond market flashes a recession warning with the NASDAQ looking down on the sector, “our” cell and gene therapy universe;

European stocks fall as weak economic data reversed relief rally on Trump’s tariff delay with the pan-European Stoxx 600 down -0.6% by mid-morning;

Asia Pacific stocks edged up as the U.S. announced a delay in the implementation of tariffs on some Chinese goods;

  • “A cynical view then is that the delay is purely for political timing rather than a more substantive change in the US’ approach to the US-China relationship,” Tapas Strickland, an economist at National Australia Bank, wrote in a note <CNBC>.

 

Data docket: weekly mortgage applications were due out at 7a.m. ET, while import and export prices for July will be released at around 8:30 a.m.

 

Henry’omics:

The yield on the benchmark 10-year Treasury note on Wednesday broke below the 2-year rate, an odd bond market phenomenon that has been a reliable indicator for economic recessions.

Another geo-political issue, “Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of ongoing protests.”

To understand today, we need to reflect on yesterday’s session …

From Tuesday’s evening post, “the sector flipped up but, didn’t soar; we could be stuck in a risk-off phase where performance is iffy and mixed.”

•             The NASDAQ was up +152.95 or +1.95% to 8,016.36;

•             The IBB closed up +1.22% and the XBI closed up +1.38%;

•             The close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;

•             The range of the 22 upside was +0.14% (BLUE) to +8.70% (KOOL +$0.24) while the 20 downside ranged from -0.08% (CLLS) to -11.02% (SLDB);

•             5 out of the 22 upside had higher than the 3 month average volume;

•             3 out of the 20 downside had higher than the 3 month average volume;

August has 4 POSITIVE and 5 NEGATIVE closes, so far

 

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

*** Reiterating: 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.