Lower open expected; RegMed Investors’ pre-open, the sidelines are on the sunny side of the field

August 2, 2016 7:31am

… Sector stocks are trying to break through trading ranges lately however,resistance has become more formidable

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

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

Companies in my headlights: CLBS, CLLS, KITE, ONCE and XON

Indexes and ETFs: The IBB (-0.26%) and IWM (-0.21) are DOWN while the XLV and XBI are NOT indicating

Dow futures are DOWN -0.11% and NASDAQ futures are also DOWN -0.12%

U.S. stock index futures indicated a lower open Tuesday as investors focused on hefty falls in Europe's banking sector and a new fiscal stimulus package from Japan.

European stocks were lower in morning trade, dragged down by banking shares as worries about the health of the region's lenders continued to weigh on sentiment.

Asia markets closed mostly lower, with Australian shares falling despite another interest rate cut from the Reserve Bank of Australia, while the yen climbed after Japan's cabinet approved the government's stimulus package.

Data docket: New July vehicle sales data, and personal income figures are expected at 8:30 a.m. ET.

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

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

• Monday closed POSITIVE with 19 decliners, 21 advancers and 3 flats;
• Friday closed NEGATIVE with 20 decliners, 18 advancers and 5 flats;
• Thursday closed NEGATIVE with 22 decliners, 15 advancers and 6 flats;
• Wednesday closed POSITIVE with 15 decliners, 27 advancers and 1 flat
• Last Tuesday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;

Remembering Monday’s post, “Most of “our” universe’s “stories” haven’t changed other than sticking to a lot of past possibilities which still need validation and verification.  Like messengers to the unfaithful, most equities in the sector have risen, sputtered, fallen to rise again – for how long?”

• It is too dangerous to follow the crowd into buying at “just-in-time” highs.

It’s been reported that retail investors are withdrawing money from of managed mutual funds and pouring into index funds <MarketWatch>.

• This is another clue that it’s a warning sign.

I hate to be so negative but, reality is subjective.

• A large part of the subjectivity of my perception and understanding of the stem, cell, gene and regenerative therapy sector is determined by sentiment – which is based on emotion and the understanding of the significance of fundamentals, technicals and patterns.

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 +1.60% and is DOWN -0.26% in Tuesday’s pre-market;
• The SPDR S&P Biotech ETF (XBI) closed Monday up +2.42% and is NOT indicating in Tuesday’s  pre-market;
• The Health Care Select Sector SPDR ETF (XLV) closed up Monday +0.64% and is NOT indicating in Tuesday’s pre-market;
• The iShares Russell 2000 (IWM) closed up +0.09% on Monday and is DOWN -0.21% in Tuesday’s pre-market.

Companies in my headlights:

Caladrius Biosciences (CLBS) closed UP +$0.16 to $5.70 after Friday’s $5.54 (+$0.08) after Thursday’s $5.48 (+$4.96) after a 1 for 10 reverse split. Historically “reverses” have a negative downside effect especially if there is more to the share pricing than a NASDAQ listing. Don’t be fooled by share movements followed by a press release – its how to mitigate downfalls post reverses but, also be prepared for an offering – Maintaining SELL:

Cellectis SA (CLLS) closed UP +$0.73 to $27.10 after Friday’s $26.37 (+$0.27). After a good week of positive closes, Monday’s $25.25, $25.39, $26.01, and Thursday’s $26.10 – traders will be “eyeing” the upside – Maintaining SELL;

Intrexon (XON) closed UP +$2.05 to $27.38. A growing Zika outbreak in Florida has forced public health officials to issue a rare domestic travel warning, urging pregnant women — and those trying to have a child — to avoid a trendy section of the city where the virus has been spreading. Zika has not been contained and is spreading. What other defense other than spraying at the moment is there?  The aftermarket indication is positive +$0.22 – BUY;

Kite Pharma (KITE) closed UP +$0.40 to $57.03. Last week’s range of $51.51 to $56.63 says it all, an appreciating target with solid momentum and volume.  The aftermarket indication is negative -$0.03,  take a profit - SELL;

Spark Therapeutics (ONCE) closed UP +$0.93 to $58.87. After last week, Friday’s $57.94, Thursday’s $55.39, Wednesday’s $53.99 after last Tuesday’s $54.11 - a good week but, still a target on its $4.76 appreciation. In this market, at this time, I’d be “antsy” – take the profit and come-back another session – 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.