October 9, 2019 8:16am
Futures jump as the parameters are being defined with China for negotiations starting on Thursday following a war of words and recriminations
Follow the herd mentality, there are many oversold looking for a temporary relief from an upside inoculation
News: Ionis Pharmaceuticals (IONS closed down -$1.40) has been notified by its partner Bayer about the decision to advance IONIS-FXI-LRx following positive clinical results. IONIS-FXI-LRx is an antisense medicine being developed to treat patients with clotting disorders. This enables the potential to separate anti-thrombotic activity from bleeding risk – BUY.
Quarterly results: Sage Therapeutics (SAGE) dates the earnings call on 11/12
Insight is about understanding perception and is putting into context what is relevant to expectation fulfillment …
But cannot be imaginative in considering explanations for missing, confusing and often contradictory data while human analysis is able to identify one’s own biases and expectation of what the data might/should/could show!
Dow futures are UP +0.78% (+204 points), S&P futures are UP +0.97% (+28 points) and NASDAQ futures are UP +1.10% (+84 points)
Futures on the Dow, S&P and NASDAQ were higher; after is supposedly said that China is open to agreeing to a partial trade deal with the U.S.;
European stocks traded higher as investors react positively to the potential of a deceleration of the trade issues and softened Fed comments as the pan-European Stoxx 600 rallied to gain 0.3%;
Asia Pacific markets are mixed amid US-China trade uncertainty as the MSCI Asia ex-Japan index shed 0.58%.
Data docket: weekly mortgage application numbers are expected out at 7 a.m. ET, and wholesale trade figures for August and Job Openings and Labor Turnover Survey (JOLTS) data for August will both be released at around 10 a.m. ET.
We yesterday experienced a 9.5% increase in the volatility index …
The oversold should be recognized after bouncing off bottoms in four (4) out of six (6) sessions in October while September posted fourteen (14) negative closes, 1 holiday, 2 non-reported and only seven (7) positive sessions.
It’s time for the sector to be given a baby bottle to stop its crying!
Market focus is largely attuned to global trade developments, with high-level negotiators from the U.S. and China poised to meet for a fresh round of talks in Washington, D.C., on Thursday. Citing an official with direct knowledge of the talks, Bloomberg reported that China is prepared to accept a partial trade deal as long as no more tariffs are imposed by President Donald Trump.
The report added that Beijing would offer non-core concessions like purchases of agricultural products in return, but not budge on major sticking points between the two nations. Separately, the Financial Times reported that officials in China are offering to increase purchases of U.S. agricultural products, in order to reach a partial deal <CNBC>.
So, what will be the trade and tariff deal ….kick the can of big issues down the road to facilitate saving face as both countries need to tone down the rhetoric and aggressive actions and words of recriminations!
Tuesday night’s newsletter heading: “the curtain came down abruptly on the sector. There’s no strength in volume as many gains are wiped out as investors reduce risk; it’s all about clinical data and I don’t see or hear much at all. It’s all based on U.S. – China trade talk deal diminishes.”
- The NASDAQ closed down – 132.52 points (-1.67%)
- The IBB closed down -1.80% while the XBI closed down -1.52%
- The close was negative with an A/D line of 4/37, 1 flat, 1 reversed merged (HSGX) and 2 acquired;
- The range of the 4 upside was +0.07% (FATE) to +3.07% (BSTG) while the 37 downside ranged from -0.01% (BLUE) to -9.62% (NTLA);
- 2 out of the 4 upside had higher than the 3 month average volume;
- 10 out of the 37 downside had higher than the 3 month average volume;
- October registered 1 positive, 1 neutral and 4 negative close, so far …
- September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;
Companies in my headlights – It’s your decision; I provide an idea and context:
*** I’d follow the trading herd but … still be mindful of upcoming quarterly results (first to announce is Sage Therapeutics (SAGE) on 11/12) and their effect upon share pricing … BUY and get trampled in the coming sessions or SELL and relieve the anxiety.
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.