August 29, 2019 8:54am
… As futures strengthen indexes; volume and percentage movement were still small yet, up
Better moves to the upside will spell a coming disaster as the sector becomes overbought
We crave explanations because they give us an illusion of control.
RMi outlines preludes and aftermaths of the cell and gene therapy sector defining the daily dosage of facts and objectivity –
Dow futures are UP +1.03% (+269 points), S&P futures are UP +0.95% (+28 points) and NASDAQ futures are also UP +1.17% (+90 points)
Futures on the DOW, S&P and NASDAQ were both higher as trade escalation “words” deescalate;
European stocks reversed early losses on inflation data; the pan-European Stoxx 600 climbed +0.4% in early trade;
Asian Pacific markets were mixed as investors continued to watch the yield curve in U.S. Treasuries, which inverted further overnight with the MSCI Asia ex-Japan index rising +0.08%;
Data docket: the latest weekly jobless claims, a second reading of second-quarter GDP (gross domestic product) and advance economic indicators for July are all scheduled to be released at 8:30 a.m. Pending home sales for July will follow slightly later in the session.
- The closely-watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points in the previous session. The move extended losses from earlier in the week, when the spread registered its lowest level since 2007.
I love it when value returns but, still worry about pricing sustainability.
Hopefully, news with on the sector will come back in September and the rush to Labor Day subsides and balance returns after the “dog days” of August.
Reminder, be prepared for the exit on some equities ...!!
From Thursday’s evening post, “as we move through the market’s grounds; many rides are enticing however; investors wanted the one we would not fall off. So, traders strapped investors into the rollercoaster to feel the upside and heights of the sector and not worry about the portfolios. A firm seat with traders locking the grip bar with no sliding is better than none – they’re on our side today.”
• The NASDAQ was up +29.94 or +0.38% to 7,856.58;
• The IBB closed up +0.65% and the XBI also closed up +1.44%
• The close was positive with an A/D Line of 30/13 and 0 flat and 2 acquired;
• The range of the 30 upside was +0.13% (ALNY) to +10.38% (CUR) while the 13 downside ranged from -0.20% (ONCE) to -13.46% (BSTG);
• 4 out of the 30 upside had higher than the 3 month average volume;
• 2 out of the 13 downside had higher than the 3 month average volume;
In August there has been 11 negative and 9 positive closes
Companies in my headlights – It’s your decision; I provide an idea and context:
*** The market looks to be hot, let the traders and machines roll the dice – I am in a not-take-a-chance mode, hoping the trader and machines side wagers will “rule” up***
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.