December 2, 2019 8:57am

A contrarian view is a protective stopcock

Lately, the health of the sector is based on algorithms than investor sentiment

Pre-open indications: I am still recommending taking some profits off the table

It’s an honor to be considered the “canary in the (sectors) coal mine”!  I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors in the perception of sector vulnerabilities and strengths – it’s more than opinion, the facts and truth need to be recognized!


Who is feeding your portfolio profits - RMi’s indicators or should be!


Dow futures are UP +04% (+12 points), S&P futures are UP +0.3% (+1 point) and NASDAQ futures are DOWN -0.07% (-5 points)


U.S. stock index futures rose as market participants monitored U.S.-China trade talks;

European markets were higher with the pan-European Stoxx 600 up +0.4% during mid-morning deals;

Asia Pacific markets rose  as a private survey of Chinese factory activity in November came in stronger than expected, with the Caixin/Markit manufacturing Purchasing Managers’ Index for the month rising to 51.8;


Data Docket: ISM manufacturing and construction spending figures are due out at 10 a.m. ET.



Monday’s rising futures despite Chinese state media reporting Sunday that Beijing wants a cancellation of tariffs for a phase one trade deal.

There is no clear indication of when both countries will be able to sign an agreement as last week saw fresh tension between Washington and Beijing after President Trump signed legislation supporting protesters in Hong Kong.


The only long, I will consider is an elongated piece of Entenmamans as tensions exist between liquidity and fundamentals!


Friday night’s newsletter heading: “an early and positive sector close; still, selling into strength is a construct that won’t be regretted. Be prepared for the next weeks of algorithm’s retreats.”

Volume has stayed low while the IBB (+4.2%)and XBI (+5.53%) snaked higher last week with five (5) positive closes last week … I’d be nervous, no matter what or how high the markets move - today!

A quote from Friday, “There’s more room for profit-taking, but that doesn’t change my near-term view that the pain trade is a block away!”


Review the context of Q4’s market – so far:

  • December starts today …
  • November registered 1 holiday, 12 positive and 8 negative close;
  • October registered 10 positive, 1 neutral and 14 negative closes;


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

Pre-open indications: I am still recommending taking some profits off the table


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.