June 30, 2016 6:44am

… The canary in the sector’s coal mine

Why do investors need me, algorithms have taken over the stock markets …

 

… Since the machines have taken over, more than a good story is needed

Interpretation and translation of material events matter on noise-filled days, reset the algorithm with content and context to create a machine override.

 

Companies highlighted: AGTC, BLFS, BLUE, FCSC, JUNO, KITE and MESO

 

I offer a tool set of pertinent facts defining the who, when, where, which and what of it!

Where is today’s market going – subscribe and find out 

 

 

Where do investors turn for insight and perspective - I say intelligently what others won't, so you can do what others can't!

 

 

Indexes and ETFs: UP is the IWM (+0.31%) while the XLV, XBI and IBB are not indicating

Dow futures are UP +0.23% and NASDAQ futures UP +0.15%

 

U.S. stock index futures indicated a higher open on Thursday as traders eyed the release of data and kept an eye on the fallout from the U.K.'s decision to leave the European Union.

European stocks fluctuated during morning trades, as a rebound seen in U.K. stocks following the Brexit vote lost steam and a renewed decline in oil prices capped gains in the market.

Asia markets lost some momentum, even as global markets recovered from their post-Brexit plunge.

Data docket: initial claims are set to come out at 8:30 a.m. ET, with Chicago PMI due at 9:45 a.m. ET. Later on Thursday, St Louis Fed President James Bullard will give a speech in London at the Society of Business Economists' annual dinner.

 

 

The stem, cell and gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Wednesday and Tuesday, NEGATIVE on Monday and Friday and POSITIVE on last Thursday.

 

The SCG&RT 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 POSITIVE with 6 decliners, 35 advancers and 2 flats;
  • Monday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;
  • Friday closed NEGATIVE with 37 decliners, 5 advancers and 1 flat;
  • Last, Thursday closed POSITIVE with 8 decliners, 33 advancers and 2 flats;

 

 

… Enjoy the holiday; I am off with another year under my belt …

Remembering Wednesday’s post, “Volatility still lingers coupled with big swings in sentiment branded by rallies that do not last. This indicates what’s happening at quarter-end and before Independence Day.  Since the fireworks have started early with uncertainty flaring and risk streaming.”

  • Battered investors are looking for light at the end of the tunnel. Here is at least a small glimmer: the most bullish day of the year is here.

According to Stock Trader’s Almanac, July 1 (or which day is the first trading day of July) is the most bullish day of the year. <MarketWatch>

  • Those are pretty good odds, but it's only one day.

Assuming July 1 is an up day, there is obviously a bigger issue: Is this actually light at the end of the tunnel or just another dead-cat bounce?

 

 

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 +2.15% and is NOT indicating in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Wednesday up +3.96% and is NOT indicating in Thursday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Wednesday +1.91% and is NOT indicating in Wednesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed Wednesday up +2.27% and is UP +0.31% in Thursday’s pre-market.

 

 

Companies in my spotlight:

Brexit +3 … traders will be locking in profits …

Applied Genetic Technologies (AGTC) closed UP +6.03% <+$0.81> to $14.24 after Tuesday’s +3.63% <$0.47> after Monday’s -4.99% - trader’s fingers are “itchy” to take profits, the aftermarket indication is -$0.07 – BUY to SELL;

BioLife Solutions (BLFS) closed DOWN -1.63% <-$0.03> to $1.61 after Tuesday’s -1.81% <-$0.02> after Monday’s +2.48% - cash position <$1.66 M> is more dangerously low – Maintaining SELL;

bluebird bio (BLUE) closed UP +6.33% <+$2.51> to $42.23 after Tuesday’s +8.30% <+$3.05> after Monday’s -10.07%. The aftermarket indication is +$0.30 - Maintaining BUY;

Fibrocell (FCSC) closed DOWN -5.04% <-$0.06> to $1.13 after Tuesday’s -13.14% <-$0.18> after Monday’s +33.01%. The aftermarket indication is -$0.04 as FCSC updates on the wind-down of its azficel-T operations and announces it 'is focusing its efforts and resources on its gene therapy portfolio of product candidates. With the focus now on its gene therapy portfolio, Fibrocell is actively seeking an acquirer for azficel-T and is winding down azficel-T manufacturing and related operations at its Exton, PA facility and reducing the workforce that supports such operations. FCSC expects that these measures will result in significant cost savings and believes its monthly cash burn for the remainder of 2016 will decrease to an average of $1.6 M, as compared to a year-to-date monthly average of $2.2 M – Maintaining SELL;

Juno therapeutics (JUNO) closed UP +$0.62 or +1.59% to $39.57. The aftermarket indication is -$0.56. The ladder has been up: Tuesday’s $38.95 and Monday’s $37.43. Traders could be skimming the upside – SELL;

Kite Pharma (KITE) closed UP +$0.11 or +0.22% to $50.99. The aftermarket indication is -$1.10. Another “itchy” finger – SELL;

Mesoblast (MESO) closed UP +2.31% <+0.09> to $3.98 after Tuesday’s+9.89% after Monday’s -6.84%. Not a seller - Maintaining HOLD;

 

 

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.