January 17, 2020 7:45am

Thanks for a longer weekend, Dr. Martin Luther King and some freedom from markets

Pre-open indications:  we are getting overbought

My version of the morning’s numbers is written to be informative; it’s includes what happened or will beyond the headline and shapes today’s markets as seen by RMi - SUBSCRIBE

 

Dow futures are UP +0.23% (+68 points), S&P futures are UP +0.20% (+6 points) and NASDAQ futures are UP +0.36% (+33 points)

 

U.S. stock index futures were slightly higher Friday morning as investors digest growth data;

European stocks advanced after China’s GDP (gross domestic product) numbers grew in line with expectations. The pan-European Stoxx 600 added +0.7% in early trade to reach a fresh record high;

Asia Pacific markets were higher in response to the GDP figures, with Hong Kong’s Hang Seng index adding +0.5% to lead gains.

 

Data docket: new housing starts and building permits due in the U.S. at 8:30 a.m. Investors will also be monitoring key December inflation data and November construction output figures out of the euro area, due at 10 a.m. London time on Friday. U.K. retail sales are due at 9:30 a.m. China’s GDP (gross domestic product) numbers grew in line with expectations, lifting global markets.

 

Henry’omics:

The economic numbers speak today, inflation and housing, China’s GDP and UK retrial sales as well as construction output data.

 

I’m still “foreseeing” distress, anxiety and a downside slide as the cell and gene therapy sector evolves until the start of Q4 results.

Spending is up; SG&A will be growing while R&D suffers from overhead which must be reduced as runways will always be replenished but, at what price to investors?

It’s Friday, I am cranky and waiting for real news not, Q4’s spending and share pricing drops.

 

Remember, the gambler’s fallacy, “which is the false belief that just because a particular event has happened more frequently than usual it is less likely to happen in the future. The coin flip is the oft-used example: After five heads in a row, it sure feels like a tails is coming.”

 

Thursday night’s post’s title:  “stability hangs in the balance, 7 positive out of 12 closes have kept the cell and gene therapy sector flinching.”

  • The NASDAQ closed UP +98.44 points (+1.06%)
  • The IBB closed up +0.62% and XBI closed up +0.73%
  • The range of the 18 upside was +0.12% (CRSP) to +25.52% (BLCM) while the 15 downside ranged from -0.48% (MESO) to -8.68% (XON); 
  • 5 out of the 18 upside had higher than the 3 month average volume;
  • 9 out of the 15 downside had higher than the 3 month average volume;

 

Review Q1:

January registered 7 positive, 4 negative closes and 1 holiday, to date.

Q4:

  • 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:  we are getting overbought

 

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.