March 8, 2016 6:31am

 

The stem, cell and gene therapy regenerative medicine sector carousel revolves while its horses are mounted on posts that move up and down by gears …

 

Which gear are we in? For your pre-open briefing, subscribe … http://www.regmedinvestors.com/create-account

 

 

I say today what others won't, so you can do what others can't; whether information or intelligence is good, bad or somewhere in between – it defines the who, when, where, which and what of it …

 

Dow futures are DOWN -0.6% and NASDAQ futures are DOWN -0.1 %

 

U.S. stock index futures indicated a lower open on Tuesday as investors paused for breath after a recent rally and digested weaker-than-expected trade data from China.

European equities were trading lower after a recent rally petered out as China trade data hit European miners hard. Miners were feeling the pressure after a drop in industrial metals prices such as copper, nickel and aluminum.

Asian markets retraced some of their recent rally while China shares eked out gains with traders digesting weaker-than-expected trade data from the mainland.

 

Data docket: there are no major earnings releases but The National Federation of Independent Businesses (NFIB) will release its business optimism index at 6 a.m. ET. Traders will also be reacting to fresh comments from Federal Reserve members. Two key Fed officials said Monday they expect inflation to get closer to the central bank's target.

 

 

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

 

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

·         Monday closed POSITIVE with 12 advancers, 31 advancers and 1 flat;

·         Friday closed POSITIVE with 16 decliners, 24 advancers and 3 flat

·         Thursday closed NEGATIVE with 23 decliners, 18 advancers and 2 flats;

·         Wednesday closed POSITIVE with 6 decliners, 35 advancers and 2 flats;

·         Last, Tuesday closed POSITIVE with 14 decliners, 26 advances and 3 flats

 

 

The stem, cell and gene therapy regenerative medicine (SCGT&RM) opened up and stayed positive on Monday!

  • Keeping last night’s hat on …”technically an overbought sector is a good thing until speculators resume their “shakedown” of these positions in synch with past trends unable to resist the urge to take profits!”

Reiterating, my attempts to define a pattern with a time limit based on closes ignores the fact that the sector operates on its own schedule, and no one else's.

  • As the sector advances on small volume, investors should prepare for renewed volatility as financial/earnings complete the Q4/14 announcements.

Also think beyond cash positions, more about forward catalysts and those who exhibit greater risk by their lack of partners.

 

 

Out and about – an early morning reading!

·         Stem cell treatments offer hope but carry risks … http://www.marketwatch.com/story/stem-cell-treatments-offer-hope-but-carry-risks-2016-03-08

 

 

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

  • bluebird bio (BLUE) closed UP +$0.62 to $55.12. After the mixed weeks of share pricing in February and the four (4) days of March, will the speculators profiteer – make a bet, it’s still the big casino. The after-market indication is -$0.12 –SELL;
  • Fibrocell (FCSC) closed UP +$0.28 to $2.98. The Month of March has seen appreciation since $2.27 while February began at $2.61, dropped as low as $2.12 and finished at $2.26. Profiteering could be on the table – SELL;
  • Juno Therapeutics (JUNO) closed DOWN -$0.57 to $43.18 after being up +$3.04 on Friday after Thursday’s -$2.03. One can’t argue with momentum or the after-market indication of -$0.38 – SELL;
  • Intrexon (XON) closed UP +$1.87 to $38.90. The Zika virus story and XON’s participation is keeping the appreciation balloon full until it isn’t. Monday’s after-market indication is +$0.60 – Maintaining BUY;
  • Pluristem (PST) closed UP +$0.20 to $1.56. I have doubts concerning the radiation antidote “story” – over-told and unsubstantiated by Ray Dirks (?). Monday’s after-market indication is +$0.19 – the “numbers” speak for themselves– BUY;

 

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.