July 22, 2016 7:37am

… Sentiment feels bad, share pricing volatility is high and volume is sending a dispirited signal

Sitting on a park bench is never comfortable

… The indexes and ETFs signal SELL

 

I answer one question; in which company should investors put, keep and commit their money!

 

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 headlights: ADRO, BLFS, BSTG and CLLS

 

Indexes and ETFs: The IBB (-0.02%), XBI (-0.25%) are DOWN while the IWM (+0.28%) and the XLV (+0.20%) are UP

Dow futures are UP +0.18% and NASDAQ futures are UP +0.16%

U.S. stock index futures indicated a higher open on Friday

European stocks fluctuated as markets digested the latest preliminary reading of manufacturing and services activity in the euro zone.

Asia markets fell, with shares of Nintendo and McDonald's Holdings losing steam after initially jumping on the news the highly popular "Pokemon Go" app finally launched in Japan, after weeks of anticipation.

Data docket: the release of manufacturing PMI at 9:45 a.m. ET as well as further earnings.

 

 

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

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

  • Thursday closed NEGATIVE with 22 decliners, 19 advancers and 2 flats;
  • Wednesday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;
  • Tuesday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats
  • Monday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
  • Last, Friday closed POSITIVE with 13 decliners, 29 advancers and 1 flat;

 

 

Remembering Thursday’s post, “As usual, there are a number of indicators – volatility, low volume and the squeezing of advance/decline lines pointing in opposite directions. A more ominous indicator regarding the SCG&RT sector is – never be long over a hot summer weekend when one can leave with a quarter in your pocket!”

  • The CBOE Volatility Index (VIX) this week has been under 12 for the first time, 12.73 in Thursday’s trading, Wednesday’s 11.72, Tuesday’s 12.6 and Monday’s 12.4.

There is some validity to a call that we’re due for further weakness from increases in the VIX in the near term.

  • Russell 2000 small caps closed down 0.47% on Thursday, tracking for their first weekly loss in four weeks however, it is indicating a miniscule +0.02% on today. Small caps are down 4.9% from their 52-week high.

 

Reiterating, it’s a trading sector and expectation driven market!

 

 

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 Thursday up +1.34% and is DOWN -0.02% in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Thursday up +0.57% and is DOWN -0.25% in Friday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Thursday +0.22% and is UP +0.20% in Friday’s pre-market;
  • The iShares Russell 2000 (IWM) closed Thursday down -0.57% and is UP +0.02% in Friday’s pre-market.

 

 

Companies in my spotlight:

Aduro Biotech (ADRO) closed UP +$0.44 to $13.67. The week has been appreciative, $13.67, $13.23, $12.70 and Monday’s $13.37 and with traders propensity to “finger” the SELL button be wary – SELL;

Biostage (BSTG) closed FLAT at $1.11. The week has fluctuated from Monday’s $1.15, Tuesday’s $1.08 through Wednesday’s $1.11. However Thursday, Maxim issued an analyst report dropping their price target from $8.00 to $3.00 based on a tough financing market and the stock’s price and future dilution as BSTG needs to raise capital to fulfill filing an IND with a potential of human clinical trials– SELL;

BioLife Solutions (BLFS) closed UP +$0.15 to $2.10. Something is UP, volume jumped through the roof - 414,997 share volume <average 3 month volume =365,403 shares>.  BLFS has averaged 283,100 on Monday, 126,300 on Tuesday and 90,800 on Wednesday – HOLD;

Cellectis SA (CLLS) closed DOWN -$0.24 to $25.14. Another equity suffering from trading markets as Monday started at $25.88 to Tuesday’s $25.10 and Wednesday’s $25.11 – oversold based on “other’s” issues <JUNO and KITE>. The aftermarket indication is +$0.19 - BUY

 

 

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.