June 4, 2020 8:07am

The risk to the market right now is exuberance … June will tell us whether the current trend continues; I’d rather profit in my pocket than at risk on the “table”

Pre-open indications: 2 SELLs 

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Dow future are DOWN -0.14% (-36 points), S&P futures are DOWN -0.30% (-9 points) and NASDAQ futures are DOWN -0.11% (-11 points)

 

Futures are down and falling in early trading Thursday following another multiple achieving session;

European stocks traded slightly lower as investors assessed the outlook for the global economy after the coronavirus pandemic, while keeping an eye on protests in the U.S. with the pan-European Stoxx 600 slipping -0.3% lower in early trade;

Asia Pacific stocks were mixed as Australian retail sales for April plunged a seasonally adjusted 17.7% in April, according to data released Thursday by the country’s Bureau of Statistics; Japan rose and South Korea closed higher while Mainland Chinese stocks were mixed on the day.

 

Data docket: U.S. total unemployment level worse than expected: weekly jobless claims totaled 1.877 million last week vs. the Dow estimate of 1.775 million. Continuing claims rose sharply, hitting nearly 21.5 million in a sign that workers are being called back to work slowly.

  • The European Central Bank (ECB) is set to announce its latest monetary policy move at 12:45 p.m. London time, and is expected to expand its coronavirus crisis bond-buying program in a bid to weather the euro zone’s worst economic downturn since World War II.

 

Henry’omics:

The manner of highs is to usually say good-bye as the …

  • Nasdaq 100 index, which tracks the 100-largest nonfinancial companies in the Nasdaq rose 0.5% to close 0.3% below a record set on Feb. 19. The index has rallied more than 43% from an intraday low set on March 23. The Nasdaq is just 1.58% below its all-time high.
  • The Dow surged +10.7% while the S&P 500 gained +10.3% in a month-over-month rally.
  • Wednesday’s gains led the Dow to a three-day winning streak and put the blue-chip index up 3.49% over the first three trading days of the month. The S&P 500 notched its first four-day winning streak since early February.

And then they exhaled …

 

Wednesday post’s title: “cause and effect”

  • The NASDAQ closed UP +74.54 points (+0.78%);
  • Wednesday closed negative with an Advance/Decline (A/D) line of at 9/25 and 1 flat, Tuesday closed positive at with an A/D line of 21/13 and 1 flat following Monday’s positive close with an A/D line of 23/10 and 2 flats;
  • Volume was WEAK with 3 out of the 9-upside having higher than the 3-month average volume and 3 out of the 25-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 9-upside were +0.19% (ADRO) to +10.22% (NTLA) while the 25-downside ranged from -0.05% (BLUE) to -16.92% (PGEN); 

Q2:

  • June registered 2 positive and 1 negative close
  • May registered 9 negative, 11 positive closes and 1 holiday
  • April registered 10 negative, 11 positive closes and 1 holiday.

Q1:

  • March registered 11 negative, 10 positive closes and 1 neutral close.
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

 

Companies in my headlights – It’s your decision; I provide an idea and context

Sell:

  • Applied Genetic Technologies (AGTC) closed down -$0.08 to $4.90 and has a negative -$0.15 or -3.06% aftermarket indication;
  • Pluristem (PSTI) closed up +$0.21 and has a negative -$0.19 or -2.415 aftermarket indication;

 

The BOTTOM LINE: The sector is looking for good news, any news or even bad news that will define or refine the direction it will take!

Interesting quote, ““History shows there is simply no correlation between social/political turmoil and U.S. stock market returns,” wrote Nicholas Colas, co-founder of DataTrek Research.

I am without or empty as to expectation today!

 

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.