April 22, 2016 6:34am

While animal spirits hamper confidence …

 

Don’t miss access to timely and actionable information.

Subscription sign-up … http://www.regmedinvestors.com/create-account

 

Companies mentioned: ADRO, QURE and CUR

 

 

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 …

 

 

Where are today’s markets going; Dow futures  are DOWN -0.6% and NASDAQ futures are DOWN -0.16%

 

U.S. stock index futures indicated a lower open Friday, amid weak global sentiment, as investors looked ahead to more earnings news and fresh manufacturing data.

European stocks posted losses, as sharp losses in the autos and basic resources sector along with a slew of mixed earnings, capped gains in the region.

Asia markets finished mixed on the final trading day of the week, but the major indexes in Australia, Japan and Hong Kong eked out weekly gains.

 

Data docket: Manufacturing PMIs (purchasing managers' index) will be released at 9:45 a.m. Traders will also eye the oil price which has weighed on sentiment in recent months

 

 

The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector closed POSITIVE on Thursday, NEUTRAL on Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday, NEGATIVE on last Friday.

 

The stem, cell and gene therapy regenerative medicine sector’s record after the last 5 days (of 43 covered companies):

  • Thursday closed POSITIVE with 16 decliners, 26 advancers and 1 flat;
  • Wednesday closed NEUTRAL with 21 decliners, 21 advances and 1 flat;
  • Tuesday closed NEGATIVE with 33 decliners, 9 advancers and 1 flat;
  • Monday closed POSITIVE with 17 decliners, 25 advancers and 1 flat;
  • Last, Friday closed barely NEGATIVE with 20 decliners, 19 advancers and 4 flats;

 

 

A reminder from Thursday’s closing post, “The stock market is a huge, psychological voting mechanism, where all the “votes” are cast in the form of stock trades.   Rather than trying to predict the future of market movements, it is advisable to observe what the market is showing you and then adapt accordingly.”

  • Animal spirits is a term coined by John Maynard Keynes to describe gloom and despondence.

The Strange Case of Dr. Jekyll and Mr. Hyde might make for an even better read, but it’s far less fun when the markets act like it’s their blueprint.

  • Like Dr. Jekyll, the SCGT&RM sector faces horrible consequences when the temporary scent of fear of downside trading lets the dark side of profit taking transform the upside into the animalistic Mr. Hyde.

Stocks have lately been alternating and stretching the limits of confidence between the abysmal and the non-threatening.

 

 

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

Watch, wait and listen list:

  • The iShares Nasdaq Biotechnology (IBB) closed Thursday up +2.91% and is UP +0.02%  in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed UP +1.92%  and is DOWN -0.16% in Friday’s  pre-market;
  • NASDAQ Biotechnology (NBI) closed up +2.84%;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.59% on Thursday and is UP +0.01% in Friday’s pre-market ;
  • The iShares Russell 2000 (IWM) closed  DOWN -0.50% on Thursday and is UP +0.04% in Friday’s pre-market.

 

 

Some specifics for the morning:

  • Aduro Biotech (ADRO) closed UP +$0.96 to $14.42. ADRO has had a nice run since 4/11’s $13.66. Could be time to play speculator and take “some” off the table – SELL;

 

  • Neuralstem (CUR) closed DOWN -$0.0091 to $0.702. CUR recieverd a letter of non-complkiance with NASDAQ minimum bid (price deficiency) requirements - SELL;

 

  • UniQure (QURE) closed UP +$1.58 to $14.47. QURE has been trending  more here and a little there since 4/11’s $12.86. Speculators will be collecting the “vig’ – 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.