July 18, 2016 6:33am

… As mixed signals, deteriorating fundamentals and the approaching Q2 results create anxiety

Sentiment is always subjective and difficult to predict in terms of timing

… However, Q3 is iffy in regard to support levels

 

One issue, I do see are some ineffective executives being “maintained” due to contract and pay-off consequences inhibiting forward actions

 

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Companies in the headlights: ADRO, BLFS, JUNO, KITE and XON

Indexes and ETFs: The IBB (+0.17%), IWM (+0.04%) and XBI (+0.65%) are UP and the XLV is NOT indicating

Dow futures are UP +0.15% and NASDAQ futures are UP +0.13%

 

U.S. stock-index futures rose slightly on Monday, following Asian and European stocks higher after a $32 billion Japan-U.K. semiconductor deal boosted markets.

European stocks traded higher led by a rally in ARM shares after Softbank tabled a $32 billion offer for the U.K. semiconductor giant and as investors digest a number of geopolitical events including the failed coup in Turkey.

Asian markets traded mostly up on Monday, ahead of a relatively data-light week in the region, shrugging off the failed military coup in Turkey.

Data docket: real estate data will be in focus on Monday, with the NAHB Housing Market Index for July due.

 

 

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

The SCG&RT sector’s record after the last 5 days (of 43 covered companies):

  • Friday closed POSITIVE with 13 decliners, 29 advancers and 1 flat;
  • Thursday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats
  • Wednesday closed  NEGATIVE with 29 decliners, 13 advancers and 1 flat;
  • Tuesday closed POSITIVE with 16 decliners, 24 advancers and 3 flats;
  • Last, Monday closed NEGATIVE with 25 decliners, 16 advancers and 2 flats;

 

 

Remembering Friday’s post, “Sector momentum exhibits volatility, low volume and pricing dynamics – a warning is sounded!”

  • The merry-go-round continues circling as negative closes are offset by positive but, when does it end?

For some sector “participants” – it will take some changes in leadership or management teams!

  • One of the most appreciated sector dynamics and greatly illusionary is the amount of shares that managements are buying, selling and exercising as well as the amounts involved.

However, I believe … some of this is a “sham”; many time some BUYS are a bogus move to cover their incapacity to initiate or even respond to changing sector dynamics and are used just to solidify their positions in the “queue” –waiting for others to carry the weight and push a company forward.

  • Too many “hangers-on” are letting fellow executives carry the weight!

One major matter/issue inhibiting our sector is management contracts … many companies can’t afford to “dump” the ineffective!

 

 

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 Friday up +1.51% and is UP +0.17% in Monday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Friday up +1.71% and is UP +0.65% in Monday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Friday -0.08% and is NOT indicating in Monday’s pre-market;
  • The iShares Russell 2000 (IWM) closed Friday up +0.28% and is UP +0.04% in Monday’s pre-market.

 

 

Companies in my spotlight:

Aduro Biotech (ADRO) closed UP +$0.67 to $13.20. I believe ADRO is overbought from a trading perspective after eight (8) days in a $12.00 range and one (10 at $11.91 - SELL

BioLife Solutions (BLFS) closed DOWN -$0.13 to $1.98. BLFS announced this morning a new client – CookMyoSite ®; it will help after all the downward moves but, not satisfy their need for cash. The aftermarket indication is UP +$0.02 – Maintaining BUY;

Intrexon (XON) closed DOWN -$0.34 to $24.55. The aftermarket is DOWN -$0.20. Maintaining SELL;

Juno Therapeutics (JUNO) closed UP +$0.41 to $29.21. The aftermarket indication is DOWN -$0.23 – Maintaining SELL;

Kite Pharma (KITE) closed UP +$0.69 to $48.66. The aftermarket indication is DOWN -$0.16 – 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.