June 2, 2016 6:42am

 

Up today and most times gone tomorrow … my question is what’s to empty in a vacant lot?

 

Where do investors turn for insight and perspective - I say intelligently 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 is today’s market going? 

Indexes and ETFs: the IBB, IWM and XLV are DOWN while the XBI is UP

Investing actions: BLCM, BLFS, KITE, KOOL, OPXA, RGNX and XON

Dow futures are DOWN -0.11% and NASDAQ futures are DOWN -0.10%

 

U.S. stock index futures pointed to a lower open Thursday as traders eyed the release of ADP payroll data, OPEC's meeting in Vienna, as well as comments from European Central Bank (ECB) President Mario Draghi.

European stocks turned higher in mid-morning trade as investors looked ahead to the latest monetary policy decision from the European Central Bank (ECB) and an OPEC summit in Vienna.

Asian markets were mixed; Japan's Nikkei tumbled after the government moved to delay a sales-tax hike for more than two years, bucking mostly higher markets around the region. Chinese markets were higher, the Australia's S&P/ASX 200 closed lower while South Korea, the Kospi closed up.

Data docket: The private sector ADP payroll report – set to come out at 8:15 a.m. ET – is not widely seen as a reliable indicator for the government's jobs report, expected Friday, but last month it reported just 156,000 jobs. Two days later, April nonfarm payrolls came in at just 160,000, 40,000 shy of expectations. Initial claims are due at 8:30 a.m. ET. Traders will also be watching Federal Reserve Governor Jerome Powell, who speaks on regulation at 8:35 a.m. ET, and Dallas Fed President Rob Kaplan, who speaks at 1:00 p.m. ET at a conference at Boston College.

 

 

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

 

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

  • Wednesday closed POSITIVE with 16 decliners, 26 advancers and 1 flat;
  • Tuesday closed NEGATIVE, 20 decliners, 18 advancers and 5 flats;
  • Monday was a holiday;
  • Friday closed POSITIVE with 13 decliners, 27 advancers and 3 flat;
  • Last, Thursday closed NEGATIVE with 26 decliners, 13 advancers and 4  flats;

 

 

Remembering Wednesday’s post, “Is pricing depreciation and dilution, the only solution for growth? The time scale is cash and the magnitude is based on how much a company can raise in one financing to sustain development!”

  • Risk is still a four letter “expletive”!

The breadth of yesterday’s advance is an omen after the haphazard past five days. By comparing the advance/decline lines to trading volume – they’re hit-or-miss and chaotic … so can we see a proxy for being around for further “harvesting” of stock pricing.

  • The switching between high risk and low risk investments happens more frequently with lower volume in the fallout of these last past months.

Roro (risk on, risk off) can cause investors to behave in a herd-like manner depending on the risk environment.  This investor behavior always occurs in times of sector uncertainty!

 

 

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 +0.50% and is DOWN _0.21% in Thursday’s pre-market;

 

  • The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.21%  and is UP +0.05% in Thursday’s  pre-market;

 

  • NASDAQ Biotechnology (NBI) closed up Wednesday +0.52%;

 

  • The Health Care Select Sector SPDR ETF (XLV) closed up Wednesday +0.36% and is DOWN -0.03% in Thursday’s pre-market;

 

  • The iShares Russell 2000 (IWM) closed Wednesday up +0.68% and is DOWN -0.16% in Thursday’s pre-market.

 

 

Companies in my spotlight:

BioLife Solutions (BLFS) closed UP +$0.01 to $1.60. In an 8-K filed, BLFS increased their debt load by $1 M after having only $1.6 M in cash in the “till”.  Great, but operating cash is so low without a financing – SELL;

Bellicum Pharma (BLCM) closed UP +$0.72 to $12.39. The after-market indication is -$0.68 – SELL;

Cesca Therapeutics (KOOL) closed UP +40.25 to $3.09. The aftermarket indication is -$0.01, and that is being kind. One patient trial in India and then filing for an IDE – who is kidding whom? If the FDA approves, we should consider their sanity – Maintaining SELL;

Intrexon (XON) closed DOWN -$0.80 to $29.94. The after-market indication is +$0.13 – Maintaining BUY;

Kite Pharma (KITE) closed DOWN -$0.38 to $50.87 after being up+$0.39 on Tuesday. The after-market indication is +$1.13 – Maintaining BUY;

 Opexa Therapeutics (OPXA) closed UP +$0.18 to $3.43. The after-market indication is +$0.02 – BUY;

Regenxbio (RGNX) closed UP +$0.38 to $12.74. It was a good May in a range of $9.89 to $12.54. I’d be a profit-taker – Maintaining 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.