July 6, 2016 7:46am
The question remains, who will buy the dips?
Without new money buying-in, it’s a zero sum game and depends on traders’ penchant
I offer a tool set of pertinent facts and targeted analysis 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!
Companies in the head lights: BSTG, BTX, CAPR and KITE
Indexes and ETFs: The XBI and XLV are not indicating while IBB (-0.06%) and IWM (-1.31%) are DOWN
Dow futures are DOWN -0.63% and NASDAQ futures DOWN -0.77%
U.S. stock-index futures traded lower on Wednesday, as Treasuries continued to soar and European and Asian stocks fell.
European stocks extended losses amid continued political and economic uncertainty in the European Union (EU) following the Brexit vote.
Asia markets sold off, as investors scurried into safe-haven plays on global growth concerns, sending bond yields to record lows. Renewed Brexit jitters also sent the British pound tumbling to a fresh 31-year low.
Data docket: Trade data for May is out, as well as the ISM Services index for June. Plus, there will be the Federal Open Market Committee minutes for the meeting last month, which pre-dates the U.K. referendum vote to leave the European Union.
The stem, cell and gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Tuesday, Monday was a HOLIDAY, Friday closed POSITIVE, NEGATIVE on Thursday and POSITIVE last Wednesday
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Tuesday closed NEGATIVE with 29 decliners, 13 advancers and 1 flat;
- Monday was the 4th of July holiday;
- Friday closed POSITIVE with 5 decliners, 36 advancers and 2 flat;
- Thursday closed NEGATIVE with 21 decliners, 20 advancers and 2 flats;
- Wednesday closed POSITIVE with 16 decliners, 26 advancers and 1 flat;
- Last, Tuesday closed POSITIVE with 6 decliners, 35 advancers and 2 flats;
Remembering Tuesday’s post, “First day back, volume is low and the lack of headlines continues a trader’s bazaar. At the end of the day it still leaves a lot of questions about sector movement.”
There are plenty of warning signs coming from the sector – low volume, high volatility and advance/decline line continue to fluctuate.
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 Tuesday down -1.02% and is DOWN -0.06% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -1.25% and is UP +0.02% in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down Tuesday -0.10% and is DOWN -0.03% in Wednesday’s pre-market;
- The iShares Russell 2000 (IWM) closed Tuesday down -1.47% and is DOWN -1.31% in Wednesday’s pre-market.
Companies in my spotlight:
Biostage (BSTG) closed DOWN -$0.01 to $1.14. The aftermarket indication is -$0.04. It’s still a roller-coaster – SELL;
BioTime (NYSEMKT: BTX) closed DOWN -$0.02 to $2.70. BTX announced the full exercise and closing of its offering and underwriters’ over-allotment option. The cash is in the bank and the runway is extended - BUY
Capricor (CAPR) closed UP +$0.31 to $4.26. July 1 closed at $3.96, June 30 at $3.95, June 29 at $4.14 and June 28 at $4.33 while June 27 closed at $3.85. The gyrations and the need for a financing should be a reason to SELL;
Kite Pharma (KITE) closed UP +$0.47 to $51.42 after Friday’s$50.95 after Thursday’s $50.00, Wednesday’s $50.99, Tuesday’s $50.88 and Monday’s $49.39. The aftermarket indication is -$0.15. The appreciation and market anxiety begets another “itchy” finger feeling– Maintaining SELL;
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.
