May 19, 2016 6:33am
The recurring theme, any strength is being sold into and risk is still a four-letter word
Indexes and ETFs: the IBB is flat, and the XLV, IWM and XBI are down
Companies mentioned: AGTC, BLUE, CLLS, JUNO and ONCE
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 …
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Where are today’s markets going?
Dow futures are DOWN -0.29% and NASDAQ futures are DOWN -0.26%
U.S. stock index futures were lower on Thursday morning as traders continued to digest the Fed's release of the minutes of its April meeting and looked towards the release of several pieces of data.
European stocks traded lower as markets around the world digest the latest minutes from the U.S. Fed that appeared to raise the prospect of an interest rate hike in June.
Asian markets are also lower as the U.S. Feds prospect of raising rates sent shivers through these markets
Data docket: initial claims and the Philly Fed survey are both set to come out at 8:30 a.m. ET, with leading indicators following at 10:00 a.m.
The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector closed POSITIVE on Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday, NEGATIVE on Friday, Thursday and last Wednesday.
The stem, cell and gene therapy regenerative medicine sector’s record after the last 5 days (of 43 covered companies):
- Wednesday closed POSITIVE with 15 decliners, 25 advancers and 3 flats;
- Tuesday closed NEGATIVE with 26 decliners, 13 advancers and 4 flats;
- Monday closed POSITIVE with 12 decliners, 27 advancers and 4 flats;
- Friday closed NEGATIVE with 22 decliners, 15 advancers and 6 flats;
- Last, Thursday closed NEGATIVE with 36 decliners, 5 advancers and 2 flats;
In case you missed it:
Last night’s title: “All I see are short-term, kneejerk reactions as the iShares Nasdaq Biotechnology ETF (IBB) climbed 1.39%.”
Adding to the quote scrum,”The issue for many companies in “our” universe is a case of investment that’s staying in the sector, has left the sector and may not be coming back.”
Also be ready for the momentum “sand trap” swings from Wednesday’s upside:
• Spark Therapeutics (ONCE) +11.07%;
• Applied Genetic Therapeutics (AGTC) +6.90%;
• Aduro Biotech (ADRO) +5.97%;
• Adverum (ADVM) +5.70%;
• Cesca Therapeutics (KOOL) +4.69%
Connecting the days:
Tuesday: Interest in stocks also remains low. Only 22% of Americans in April say they viewed stocks as the best long-term investment. That’s up from the nadir of 15% after the financial crisis, but its way down from the high of 31% in April 2007, just months before the market hit its previous all-time high <MarketWatch>.
Monday: Provided many surprises with one or even two up days but, those are cut by the five to six day slides as the sector shakes many investors out of their positions, and leaves this market to traders and algorithms to “control” our investments!
The Bottom Line: defining the AAD or leaps of faith for parachuting into buying or selling …
- Have you activated your “Automatic Activation Device”; also known as automatic opening device (AOD). A "fail-safe" device that senses the parachutist's altitude and rate of descent, and is designed to mechanically activate the reserve parachute at graduated preset intervals of elapsed time, excess velocity, or minimum altitude, if the “chutist” does not deactivate or disengage it during normal descent.
Have we lost cognizance of performance, track of share pricing altitude or are we waiting for the unexpected – the RMi’s content just might deploy your chute – and provide the activation!
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 list:
- The iShares Nasdaq Biotechnology (IBB) closed Wednesday up +1.39% and is FLAT in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Wednesday up +1.80% and is DOWN -0.17% in Thursday’s pre-market;
- NASDAQ Biotechnology (NBI) closed up Wednesday +1.35%;
- The Health Care Select Sector SPDR ETF (XLV) closed Wednesday up +0.42% and is DOWN -0.24% in Thursday’s pre-market;
- The iShares Russell 2000 (IWM) closed Wednesday up +0.52% and is DOWN -0.69% in Thursday’s pre-market.
Companies in the spotlight;
- Applied Genetic Technologies (AGTC) closed UP +$1.01 to $15.67. I like the company and its management but, traders trade the “ups” a little too frequently – AGTC closed Tuesday at $14.66 after Monday’s $15.0, Friday’s $14.64 and last Thursday’s $13.72 – painfully SELL;
- bluebird bio (BLUE) closed UP +$0.48 to $39.39 after Tuesday’s $0.18 after Monday’s $0.27. After a week of swings, Friday’s $38.46, Thursday’s $36.20, Wednesday’s $38.62, Tuesday’s $40.80 and last Monday’s $41.05 – the range is anyone’s question. The after-market indication is -$0.10 – Maintaining SELL;
- Cellectis SA (CLLS) closed DOWN -$0.55 to $29.33. Tuesday’s $29.88, Monday’s $31.39 followed by Friday’s $30.00 and last Thursday’s $29.65 bodes differently from 5/9’s $33.38, I’d bet the potential upside – BUY;
- Juno Therapeutics (JUNO) closed UP +$1.34 to $39.68. Tuesday flagged pricing at $38.84, followed by Monday’s $38.16, Friday’s $36.55 and last Thursday’s $36.51. Although the after-market indication is +$0.17 – I’d be a seller - SELL;
- Spark Therapeutics (ONCE) closed UP +$4.11 to $41.23. The week has provided an appreciative run of Tuesday’s $37.12, Monday’s $36.76 following Friday’s $33.51 and last Thursday’s $33.93. I’d adjust my risk profile and book some profit to return another day – 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.
