July 19, 2016 6:45am
… iShares Nasdaq Biotechnology (IBB) is DOWN -3.24% and iShares Russell 2000 (IWM) is -0.29% in the pre-market
Might be time to take a breath…
… Especially when oversold does not mean BUY and overbought might not say SELL
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Companies in the headlights: BLCM and JUNO
Indexes and ETFs: The IBB (-3.24%), IWM (-0.29%) and XBI (-0.17%) are DOWN and the XLV is NOT indicating
Dow futures are DOWN -0.16% and NASDAQ futures are DOWN -0.27%
U.S. stock index futures indicated a lower open Tuesday, following European markets lower, as investors paused for breath after closing at record highs in the previous session.
European stocks fell lower with the DAX down 1% in morning trade.
Asian markets closed mixed with the Nikkei climbing despite shares of heavily weighted SoftBank tumbling around 10% after its $32 billion bid for a British chip firm.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Monday and Friday, NEGATIVE on Thursday and Wednesday and POSITIV last Tuesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Monday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
- 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;
- Last, Tuesday closed POSITIVE with 16 decliners, 24 advancers and 3 flats;
Remembering Monday’s post, “Despite all the common fears and expectations to the contrary, investors need to view the "realities" of stem and cell therapy as not supportive of further highs in this market. More reality is coming – Q2 results and spending on development platforms that aren’t providing support for expectations.”
- Market breadth has remained relatively weak, although the back-and-forth <market> action in the past weeks has caused trepidation in breadth indicators.
Volatility and indices have been up one day, down another and otherwise stagnant leaving traders unworried and investors anxious.
- The VIX is in its own trading range between 12.4 and 13.6. As long as it meanders about in that range, stocks are not in trouble. However, any increase back to 17 could cause a whole lot of heartache.
As I keep saying, further breakdown of support levels would keep open the door to much more negative day and week scenarios, including the possibility of eventual utter calamity.
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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 Monday up +0.35% and is DOWN -3.24% in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Monday up +0.65% and is DOWN -0.17% in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up Monday +0.04% and is NOT indicating in Tuesday’s pre-market;
- The iShares Russell 2000 (IWM) closed Monday up +0.17% and is DOWN -0.29% in Tuesday’s pre-market.
Companies in my spotlight:
I am going to decline to state my opinion on the grounds that might incriminate me on the realities of many equities … but, I’ll put forth two (2) …
Bellicum Pharma (BLCM) closed UP +$0.29 to $14.06. The aftermarket indication is DOWN -$0.06 – SELL;
Juno Therapeutics (JUNO) closed DOWN -$0.70 to $28.51 after being up on Friday at $29.21 (+$0.41). The aftermarket indication is DOWN -$0.10 – 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.
