August 3, 2016 6:37am
… As an oversold “condition” allow traders to “restock“…
While an overbought “state” just happened and will happen again …
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: AGTC, CLLS, PSTI and XON
Indexes and ETFs: The IBB (-0.34%), the XBI (-0.48%) and IWM (-0.29) are DOWN while and the XLV (+0.01%) is UP
Dow futures are DOWN -0.16% and NASDAQ futures are DOWN -0.16%
U.S. stock futures pulled lower Wednesday, setting up Dow for their eighth loss in a row, as investors waited for fresh readings on the services sector and a precursor to the closely watched jobs report.
European stocks seesawed as investors trod cautiously amid a slew of earnings and the fall in oil price, but banking stocks, thanks to results from HSBC and Societe Generale, rallied.
Most Asian stock markets lost ground, with the Nikkei selling off on the back of another yen spike amid disappointment with the country's latest stimulus plan.
Data docket: ADP’s update on private-sector hiring at 8:15 am ET - estimate targets the addition of 170,000 jobs. At 9:45 a.m. ET, Markit will release its final reading on activity in the services sector in July. The preliminary reading showed the production managers’ index hit a five-month low of 50.9. The Institute for Supply Management’s services sector index is due at 10 a.m. ET. Analysts expect a reading of 56.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed NEGATIVE on Tuesday, POSITIVE on Monday, NEGATIVE on Friday and Thursday and POSITIVE last Wednesday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Tuesday closed NEGATIVE with 26 decliners, 15 advancers and 2 flats;
- 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
Remembering Tuesday’s post, “Investors need to apply a litmus test to different time periods when considering using moving averages as a determinant – check the “watcher” here. Like the sector it’s all about experimenting!”
- With the recent run to Tuesday’s low after Monday’s high post Friday’s low; Tuesday’s drop assumed an oversold condition.
For those followers, this pattern consists of both trend measuring the exhaustion of pricing foreshadowing a countertrend strength.
I prefer listening to the “noise”, press release “stories” or lack thereof concerning the sector which should confirm my pricing prognostications – not always totally correct but, always early in reference to the relative-strength index (RSI) that moves daily faster than monthly or weekly data.
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 up +0.21% and is DOWN -0.34% in Wednesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Tuesday down -0.88% and is DOWN -0.48% in Wednesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down Tuesday -0.38% and is UP +0.01% in Wednesday’s pre-market;
- The iShares Russell 2000 (IWM) closed down -1.39% on Tuesday and is DOWN -0.29% in Wednesday’s pre-market.
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed DOWN -$0.31 to $14.94. Oversold after the past five days of $15.25, $15.03, $15.18, $15.57 and $15.18 – will the retail curse reverse– BUY;
Cellectis SA (CLLS) closed UP +$0.10 to $27.20 after Monday’s $27.10 (+$0.73) 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” profit taking. The aftermarket indication is negative -$0.14 – Maintaining SELL;
Intrexon (XON) closed DOWN -$1.15 to $26.23 after Monday’s $27.38 (+$2.05). 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 defenses other than spraying at the moment are there? The aftermarket indication is positive +$0.22 – Maintaining BUY;
Pluristem (PSTI) closed UP +$0.06 to $1.51. Can investors ever “trust” what PSTI is saying after all the hype and hyperbole? Their most recent press release states that the trial will be a double-blind, randomized, placebo-controlled trial utilizing the CLI Rutherford Category 5 for trial patients who are unsuitable candidates for revascularization. However, the real issue is what PSTI is defining as endpoints as the FDA disallowed TcPO2 for another company <to utilize> and that is just the beginning of questions in reference to past trials by other companies. They should study how to “play-well-with-others” - 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.
