January 26, 2016 6:33am

In the stem, cell and gene therapy and RegMed sector, there is no commitment either way – up or down.

 

We don't always have to be a short-termist to make money; we do though have to watch momentum to make sense of volatility and ultimately a trade.  That is why I repeatedly preach caution after reviewing and listening to 2016’s <conference> presentations!

 

Tuesday’s five (5) indications, will you know who? Let me obsess for you.  Subscribe … http://www.regmedinvestors.com/create-account ...  Can you afford not to?

 

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors before the sector and markets open.   

 

 

DOW futures are now UP +0.5 % and NASDAQ futures are now UP +0.5%

 

After initially signaling a lower open, U.S. stock-index futures were modestly higher on Tuesday following up-and-down swings in crude-oil prices.  The gains mark a big turnaround for the main stock-index futures, which had been showing sharp losses, in line with earlier declines for crude.

European markets traded sharply lower as oil slipped back below $30 and Chinese stocks closed over 6 percent lower.

Mainland equities sold off sharply in the final hour of trade, leading the losses in Asian markets, amid a renewed selloff in oil and caution ahead of the U.S. FED's monetary policy decision.

 

Data docket: A November reading for the S&P/Case-Shiller home price index is due at 9 a.m. ET, and a January figure for consumer confidence is expected at 10 a.m. ET, with economists expecting a reading of 96.2.  The FED is slated to begin a two-day meeting, with a statement due Wednesday afternoon. The meeting is seen by many as a non-event, but other analysts have warned that slight shifts in FED statements often have big impact.

 

 

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

 

Past five (5) days:

·         Monday closed NEGATIVE with 26 decliners, 16 advancers and 1 flat;

·         Friday closed POSITIVE with 5 decliners, 38 advancers and 0 flat;

·         Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats

·         Wednesday closed POSITIVE with 8 decliners, 34 advancers and 1 flat

·         Last, Tuesday closed NEGATIVE with 34 decliners, 9 advancers and 0 flats;

 

 

After all my recent physical trauma event, the sector has had its ... own distressing experience as  the stem; cell and gene therapy RegMed sector (SCGT&RM) felt  the impact of a “stilted” rally following my pattern analysis proving that short-term spurts don’t LAST!

  • Reiterating, it’s a trading sector in an uptight market. 

Getting to a “true” bottom will follow Q4 results that will show the deterioration of cash positions <i.e. runways> and the increased use of ATMs to artificially prop share pricing – usually an indicator of share weakness.

  • Looking back at the last couple of quarters along with the current share pricing, I've don’t have any “true” longs, few near-term sentiment “picks” and I have further grown the “usual suspect” list.

So, other investors shouldn’t feel surrounded by the crowd of investors who are simply unsure of what to do next.

  • Reiterating, as a solid advocate of the sector, I point-out that truth is stranger than fiction but, regardless of the idiom - “our” universe should be bracing for a grim financial reporting season, notice I didn’t say - earnings. 

 

 

You’ve made it to the office, turned on the monitor having just gotten your coffee and it hits you - what are today’s trades?  Tuesday’s indications:

  • Harvard Apparatus RT (HART) closed DOWN - $0.06 to $1.98 with a huge volume of 1.018 M shares <3 month = 1.71 M shares>.  A serious amount of volume in past four (40 sessions <1.018 M, 2.67 M, 2.36 M and 1.078 M has traded.  Volatility and artificiality are quite evident; yet, the after-market exhibits an upward spiral of +$0.07, yet I am Maintaining HOLD;
  • Juno Therapeutics (JUNO) closed +$0.26 to $32.50. The after-market exhibits a further drop of -$0.30. The “message” has to be rearticulated – SELL:
  • Kite Pharma (KITE) closed DOWN -$1.18 to $49.80. TOO many traders are “nibbling” on past appreciation. The after-market exhibits a further drop of -$0.34 - SELL;
  • Northwest Bio (NWBO) closed DOWN -$0.24 to $2.34. The two newest independent directors, Susan Bayh and Cofer Black, I have personal knowledge that on their watch all will be right. NWBO still has to weave its way through the minefield of reporting – BUY;
  • uniQure (QURE) closed UP +$0.53 to $17.39. The after-market exhibits a further drop of -$0.09. Maintaining HOLD

 

 

Opinions expressed are those of the author and are subject to change, and are 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.

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