March 10, 2020 8:53am

It’s always the darkest before the light prevails and it’s still going to get worse until it gets better

Pre-open indication: pick your targets

March continues as a rollercoaster month – My version of the morning’s numbers is written to be informative; it’s what is about what happened 

Dow future are UP +2.94% (+703 points), S&P futures are UP +3% (+81 points) and NASDAQ futures are UP +3.10% (+246 points)

 

Stock futures rallied back early Tuesday morning after multiple bad days as Trump seeks payroll tax relief to help calm financial markets;

European markets advanced as the pan-European Stoxx 600 jumped 3.7% by mid-morning, attempting to regain some ground;

Asia Pacific markets were mixed with investors looking out for potential stimulus measures to mitigate the economic impact of the coronavirus outbreak. Governments within the Group of Seven nations could announce stimulus measures Tuesday.

 

Henry’omics:

Futures erased big losses in after-hours trading Monday and turned positive after President Trump intending to calm the fears of financial markets floated the idea of “a payroll tax cut or relief” to offset the negative impact from the coronavirus after indexes suffered historic sell-off in previous sessions.

  • The potential tax incentives come on top of an $8.3 billion spending package Trump signed last month.

 

Go with the flow and let the machines do the “work of uplifting share pricing in the sector!

 

Monday night’s title: “stock pricing is stuck in quicksand; higher volumes, deepening percentage moves speak to sinking share pricing as the XBI drops -8.06%”

  • the NASDAQ closed DOWN -624.94 points (-7.29%)
  • the IBB closed down -6.80% and XBI closed down -8.06%
  • the close was negative with an A/D line of 3/32, 0 flat of 35 covered;
  • the range of the 3-upside was +0.53% (BSTG) to +16.53% (BSTG +$0.02) while the 30-downside ranged from -3.02% (ALNY) to -22.31% (PGEN); 
  • 2 out of the 3-upside had higher than the 3-month average volume;
  • 24 out of the 32-downside had higher than the 3-month average volume;

 

Q1:

March registered 4 negative and 2 positive closes

February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.

January registered 9 negative, 10 positive closes and 2 holidays.

 

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:

For once, let the electronic trading and algorithm make a contribution to our holdings

 

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.