February 10, 2016 6:37am

 

The stem, cell and gene therapy RegMed sector is exhibiting too many symptoms to make a complete diagnosis …

 

However, we’re seeing more dips being bought while many still bump along and make new lows.

 

Today’s “cheat” sheet, Wednesday’s indications. Subscribe … http://www.regmedinvestors.com/create-account ...  Leave no post unread, you’ll never know what you have missed! 

 

 

 

Investors have temporarily lost their compass; RegMed Investors’ willingness to provide the facts in evidence gets results surfacing reality and veracity. 

 

DOW futures are UP +0.9% and NASDAQ futures are UP +1.5 %.

 

U.S. stock index futures pointed to a sharply higher open on Wednesday after a very volatile week so far, as investors look to the testimony from Federal Reserve Chair Janet Yellen for reassurance.

European equities rallied, as investors look towards the Fed’s Yellen's testimony in front of Congress amid mounting concern over the health of the global economy.  The pan-European STOXX 600 was up 2.3%.

Asian markets still in the Lunar New Year's first week of trading, sharply sold-off in Japan, Singapore, and down under on Wednesday.   In Australia, the S&P/ASX 200 lost 56.37 points, or 1.17%, to close at 4,775.70, extending Tuesday's 2.88%. Japanese shares continued to tumble, with the Nikkei 225 dropping 372.05 points, or 2.31%.

·         Hong Kong and South Korea will resume trading on Thursday. Mainland Chinese markets and Taiwan will be closed for the week.

 

Data docket: Investors look to the testimony from Federal Reserve Chair Janet Yellen, she begins speaking before the House Committee on Financial Services at 10 a.m. ET Wednesday. Her prepared comments will be released at 8:30 a.m. ET.  Other data due for release on Wednesday includes the Federal Budget at 2:00 p.m. ET.

·         This will be one of the more closely watched testimonies in some time as the market tries to gauge whether March is still in play for another Fed rate increase.

 

 

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

 

Past five (5) days (of 43 covered companies):

·         Tuesday closed NEGATIVE with 27 decliners, 12 advancers and 4 flats;

·         Monday closed NEGATIVE with 36 decliners, 3 advancers and 4 flats

·         Friday closed NEGATIVE with 32 decliners, 9 advancers and 3 flats;

·         Thursday closed POSITIVE with 9 decliners, 32 advancers and 2 flats;

·         Last, Wednesday closed NEGATIVE with 22 decliners, 20 advancers and 1 flat;

 

 

The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector’s advance/decline lines <A/DL> are stepping-up from out-right disasters.

  • “Our” universe has just too many pockets of weakness but, the pressure on some of the recently beaten-down sector names could be easing!

The question is how long will investors be fearful, especially in a sector that has so many readily visible hot spots seemingly about to burst into flames.

 

Notice that last night’s indexes <NBI and XBI > were positive while the IBB and IWM closed negative but, minimally versus previous sessions – the  iShares Russell 2000 (IWM) was up <+0.13 or +0.14%> in the after-market - an indication for a minimal upside?

 

 

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?  Riding the carousel - Wednesday’s indications:

·         Growing and diminishing confidence in the stem, cell and gene therapy regenerative medicine sector could mean that we’re not looking at a reliable bottom ...

·         Meanwhile, the CBOE Volatility Index (VIX )traded up again reminding us of stomach-wrenching trading;

·         I feel the appreciation “wand” casting its spell however, I still call for caution …

 

  • bluebird bio (BLUE) closed UP +$0.16 to $45.79. Could a comeback be in store as the aftermarket indication is +$0.32? Take a chance – BUY;
  • Sangamo (SGMO) closed down -$0.11 to $5.45. After releasing quarterly financial results SGMO is down further -$0.39 in Tuesday’s aftermarket – SELL;

 

 

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.