January 6, 2020 8:18am

Macro underpinnings are weakening momentum and ultimately fundamentals

Pre-open indications:  BUY – AXGN, FIXX, VCEL and CLLS; SELL – SAGE, CLBS and RENE.L

My version of the morning’s numbers is written to be informative than just about changes to fundamentals; it’s what happened or will beyond the headline and what could happen to the future

Investors need to check the daily “pulse” for impacts upon portfolio return from RMi - SUBSCRIBE


Dow futures are DOWN -0.57% (-167 points), S&P futures are DOWN -0.53% (-17 points) and NASDAQ futures are DOWN -0.70% (-61 points)


U.S. stock index futures were sharply lower Monday morning, amid ongoing geopolitical tensions;

European stocks traded lower on Monday, as investors monitored rising tensions between the United States and Iran with the pan-European Stoxx 600 slipped 1.2% by mid-morning;

Asia Pacific markets mostly fell with Japan, South Korea, Hong Kong declined and Australia finished flat while mainland Chinese markets rose slightly;


Daily Docket: service sector Purchasing Managers’ Index (PMI) due at 9:45 a.m. ET.  In the EU, euro zone business activity hovered near stagnation in December, according to IHS Markit’s final composite PMI (purchasing managers’ index) figures published Monday.



Geo-political strains on worldwide markets soared after U.S. President Trump called for a U.S. airstrike in Baghdad that killed top Iranian General Qasem Soleimani. President Trump also said that he could slap sanctions on Iraq, after its parliament passed a resolution calling for the government to expel foreign troops from the country.

The real danger to investors is not a war with Iran but the simple fact that this stock market is controlled by momentum.

We should be rejoicing as another terrorist is dead that was fomenting strife and death in the Middle East and on a worldwide basis.

Then what do we get is a struggle between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that others play by the rules with some principle of reliability.


Momentum is fickle and can easily be reversed as negative selling perception crowds the markets.


Friday night’s post’s title:  “volatility sets the tone for first two trading sessions post a holiday; algorithms and electronic trading not Investors fled risk assets.”

  • The NASDAQ closed DOWN -71.42 points (-0.79%);
  • The IBB closed down -1.53% while and XBI closed down -1.32%;
  • The range of the 15 upside was +0.03% (GBT) to +11.44% (BSTG) while the 20 downside ranged from -0.05% (STML) to -8.96% (FIXX)
  • 4 out of the 15 upside had higher than the 3 month average volume;
  • 3 out of the 20 downside had higher than the 3 month average volume;


Review Q1:

January registered 2 negative closes and 1 holiday, to date.


  • December register 11 negative and 10 positive closes
  • 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: BUY – AXGN, FIXX and CLLS; SELL – SAGE, CLBS and RENE.L


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.