January 2, 2020 8:50am

The sector could respond to the oversold conditions even after a positive close on Tuesday?

Investors need to be made aware of new motivations for portfolio return from RMi - SUBSCRIBE

 

Multiple algorithmic “rulings” on sentiment will be needed to motivate momentum

 

Dow futures are UP +0.59% (+167 points), S&P futures are UP +0.58% (+19 points) and NASDAQ futures are UP +0.81% (+71 points)

 

U.S. stock index futures rose on the first trading day of the New Year,

European stocks traded higher after U.S. President Trump said that a phase one trade deal with China will be signed on January 15, although details of the deal remain hazy, but the pan-European Stoxx 600 did climbed +1% by the afternoon,

Asia Pacific markets were roaring on while Japan’s markets were closed as the Chinese Markit/Caixin Purchasing Managers’ Index (PMI) for manufacturing in the month of December came in 51.5, versus 51.8 in November along with  U.S. President Donald Trump tweeting that he will sign an anticipated “phase one” trade deal with China at the White House on Jan. 15,

 

Data Docket:  in U.S., U.S. initial jobless claims fall to 222,000 from revised 224,000 but, trend to an uptick in  filings in addition to the People’s Bank of China also announced Wednesday on its website that it was going to lower the reserve requirement ratio for banks by 50 basis points with effect from Jan. 6.

 

Henry’omics:

As Mr. Rogers use to sing, “It’s a wonderful day in the neighborhood …”! The theme/word or memory we desperately need to be aware of going forward is: SUSTAINABILITY …!

Geo-political emotion was lifted Thursday after the People’s Bank of China lowered the amount of reserve cash the country’s banks need to support the economy. This move will inject about 800 billion yuan in liquidity to the Chinese economy.

Chinese stocks rose broadly on the announcement, with global equity markets following them. In Europe, the German Dax rose 0.9% while the French CAC 40 jumped 1.2%.

 

But, there is always one … while global indexes are off to a good start for 2020, investors in “our” universe or sector will ... have to ... start considering how and which Q4 results  being prepared will be interpreted and there is always the clinical risks not even forgetting the "runway" and access threat in markets.

 

Wednesday night’s post’s title:  “It’s over, 2019 ends with sadness and some glee; one small wish, after an initial pre-open downslide the oversold were recognized.”

  • The NASDAQ closed up +26.51 points (+0.30%);
  • The IBB closed up +0.54% and XBI closed up +0.54%;
  • The range of the 24 upside was +0.05% (RARE) to +16.22% (BLCM) while the 11 downside ranged from -0.05% (BMRN) to -4.96% (VSTM); 
  • 6 out of the 24 upside had higher than the 3 month average volume;
  • 7 out of the 11 downside had higher than the 3 month average volume;

 

Review Q4’s market:

  • December register 11 negative and 10 positive closes … so far
  • 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: let the markets/sector trend, any upside for the oversold is welcomed

 

 

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.