Indication intelligence, analysis and sector perception

A cautious open expected. RegMed’s pre-open, the only good day was yesterday

October 16, 2015 7:25am

The sector’s trading on a rare input of unbridled positive sentiment. Can the strength be sustained?

Friday’s “6” movers and shakers trading forecast; Subscription required: http://www.regmedinvestors.com/user/register

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DOW futures are DOWN -0.1% and NASDAQ futures are UP +0.1%

A cautious open is projected, as investors wait to see if markets can pick up where they left off, after the major indexes closed at their best levels since August.

European stocks rose Friday, putting the market’s benchmark on course for a weekly gain.

Asian equities cruised higher, thanks to an encouraging lead from Wall Street and as investors bet on the possibility of further stimulus measures from Japan and China.

Data docket: Industrial production and capacity utilization for September are due at 9:15 a.m. ET. Production is expected to slip 0.2%, against a 0.4% drop for August. At 10 a.m. ET, October consumer sentiment will be released, with job openings for August coming at the same time.

The RegMed sector closed POSITIVE on Thursday, NEGATIVE on Wednesday, Tuesday and Monday following a POSITIVE close last Friday.

The RegMed sector closed POSITIVE on Thursday with 1 decliner, 37 advancers and 5 flats after a NEGATIVE close on Wednesday with 23 decliners, 17 advancers and 3 flats following Tuesday’s NEGATIVE close of 32 decliners, 11 advances and 0 flats following Monday’s NEGATIVE close with 32 decliners, 9 advancers and 2 flats.

How long will the upside movement - last as the NASDAQ outperformed, closing up 1.8% as the iShares Biotechnology Stocks ETF (IBB) leaped nearly 4.4%.

I have heard oh-so-many say that the stem, cell and gene therapy RegMed sector has bottomed" that I can no longer keep track of how many bottoms “they” have called!

I have specific parameters to conclude that the SCGT&RM sector has bottomed, and I will not issue a high probability forecast for a bottom until it exhibits a sustained pattern off the lows.

So, now, what does it take for me to "call" the bottom being in place? Well, my ideal "call" will be one, two maybe three more drops to lower lows to complete this viewpoint!

Are short-term advances in sector strength and market breadth enough to offset the upcoming financial result announcements?

Friday’s trading indications:

Capricor (CAPR) closed UP +$0.05 to $4.51 on 22,262 share volume <3 month average = 23.8 K>. Be ready for a pending offering - Maintaining SELL;

Juno therapeutics (JUNO) closed UP +$4.44 to $50.83. Strength will be sold into – SELL;

Kite Pharma (KITE) closed UP +$4.00 to $60.40, the after-hour’s number grew another +$0.60 – BUY;

MiMedx (MDXG) closed UP +$0.43 on Thursday after Wednesday’s decline of -$0.49 post Tuesday’s drop of-$1.40. The drop in MDXG's shares would seem to indicate a lackluster quarter for the company, but Q3/15 results outpaced analyst estimates on the top line – Maintaining BUY;

Osiris (OSIR) closed UP +$0.32 following Wednesday’s decline of -$0.32 after Tuesday’s -$0.45, oversold. Be ready for a positive Q3 – Maintaining BUY;

Spark Therapeutics (ONCE) closed UP +$1.60 <after yesterdays +$2.86 following Tuesday’s +$0.79> to $50.50. It seems ONCE has become a trading vehicle for speculators – Maintaining SELL;

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses.

However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.