February 17, 2020 11:04am
After a positive leaning week (3 positive closes after yesterday’s negative close)
Pre-open indications: 2 BUYs and 4 SELLs
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.
Dow future are UP +0.09% (+30 points), S&P futures are UP +0.18% (+6 points) and NASDAQ futures are UP +0.28% (+27 points)
US futures point to a slightly higher open on Friday after slipping from record highs in yesterday’s session;
European markets are mixed with the pan-European Euro Stoxx 600 index slightly higher with major bourses and sectors pointing in different directions;
Asia Pacific markets were mostly higher except for Japan as the MSCI Asia ex-Japan rose +0.25%;
Data Docket: retail sales for January and import prices for January will both be released at 8:30 a.m. ET.
Many talks about the economic impact on markets of the coronavirus; a V-shaped recovery is referenced describing downturns that see a steep fall before recovering sharply.
“While Beijing reported a smaller increase in virus cases in the epicenter of Hubei versus the previous day, they were still bigger than before the counting methodology was changed. That clouded the picture of how the pandemic is being curbed, in a week that’s been marred by Chinese airlines putting workers on leave and firms such as AstraZeneca Plc warning of a tougher outlook because of the novel disease <Bloomberg>.
In compiling my indication signals, I draw on specific knowledge of the sector and its practices as to lessons learned or to be.
It’s important for investors to identify and determine which indication is actual performance based.
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether market reaction to recent events and forthcoming Q4 and FY19 “earnings” continues a positive or cause a fundamental correction?
Thursday night’s post’s title: “closing bell: small volume defines the drop of the 20 downsizers as the IBB closed down -0.99% and XBI closed down -1.09%.”
· the NASDAQ closed DOWN -13.99 points (-0.14%);
· the IBB closed down -0.99% and XBI closed down -1.09%;
· the close was negative with an A/D line of 13/20, 2 flats of 35 covered;
· the range of the 13-upside was +0.03% (RARE) to +14.41% (BCLI) while the 20-downside ranged from -0.07% (EDIT) to -5.84% (PGEN);
· 0 out of the 20-downside had higher than the 3-month average volume;
· 5 out of the 13-upside had higher than the 3-month average volume;
February registered 3 negative and 6 positive closes – so far.
January registered 9 negative and 10 positive closes and 2 holidays.
· 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: SELL - Brain Cell Therapeutics (BCLI +$0.68); BioLife Solutions (BLFS +$0.68); Regenxbio (RGNX +$0.56 after Wednesday’s +$2.31 and Tuesday’s +$0.71) and ReNeuron (RENE.L with a -$3.06 pre-market indication); BUY - Ultragenyx Pharmaceutical Inc. (RARE +$0.02) after reporting Q4 and FY19, Editas Medicine (EDIT -$0.02 with a pre-market indication of +$1.16 or +4.32%)
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.