September 7, 2016 7:27am

… After two negative closes and one neutral session last week

 

Indexes and ETFs: The IBB, XLV and XBI are NOT indicating while the IWM (-0.02%) is down

Companies in my headlights: ADRO, AGTC, BTX, CLLS and VTGN

 

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

 

Where is “our” universe going today?  If you want to know, subscribe and find out! 

 

 

 

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

 

The Dow futures are DOWN -0.06% and NASDAQ futures are UP +0.06%

 

 

U.S. stock index futures pointed to a flat open on Wednesday, as investors gear up for another set of important economic releases and earnings, all the time keeping an eye on oil.

European stocks were slightly higher in morning trade as investors digested weaker U.S. data which lowered the chances of the U.S. Federal Reserve hiking interest rates later this month.

Asian markets were mixed as weaker-than-expected U.S. ISM services data lowered the chances the Federal Reserve will hike rates this month.

 

Data docket: mortgage applications are due out at 7.00 a.m. ET on Wednesday, followed by the Job Openings and Labor Turnover Survey (JOLTS) at 10.00 a.m. ET. In addition, the U.S. Federal Reserve is expected to release its Beige Book on Wednesday, due out at 2.00 p.m. ET.

  • The Fed has been front and center as of late, with investors pondering over when the central bank will decide to raise interest rates. Recent data including ISM non-manufacturing and the nonfarm payroll data for August have come in below market expectations, suggesting that the Fed is less likely to raise rates this month.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Tuesday, Monday was a holiday, followed by a NEUTRAL Friday with NEGATIVE closes on Thursday and last Wednesday.

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

  • Tuesday closed POSITIVE with 12 decliners, 29 advancers and 2 flats;
  • Monday was a holiday;
  • Friday closed NEUTRAL with 19 decliners, 19 advancers and five flats;
  • Thursday closed NEGATIVE with 24 decliners, 18 advancers and 1 flat;
  • Last Wednesday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats;

 

 

Remembering Tuesday’s closing post, “We've seen “our” universe trade in tight range with low volume as many enjoyed the summer months. But, it’s back to real business as the oversold and untended have flip flopped throughout the last two months.  We’re two-thirds through Q3 and pricing has sat in the cheap seats … it’s time for many to move up in the stands!”

 

It’s too risky to be long at this time especially as Q3 lingers to its end, but it’s also too early to go short.

  • Although a sector dump or jump can occur at anytime, it is and isn’t mtoo difficult to time it correctly.

Many if not most short sellers have given up (for now). As long as volatility remains in the basement, it’s hard for many traders to make money.

 

 

 

 

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 +1.24% and is NOIT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday up +2.64% and is NOT indicating in Wednesday’s  pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up Tuesday +0.37% and is NOT indicating in Wednesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed up +0.10% on Tuesday and is DOWN -0.02% in Wednesday’s pre-market.

 

 

Companies in my headlights:

Applied Genetic Technologies (AGTC) closed UP +$0.32 to $12.85 after Friday’s $12.52 (-$0.13) following Thursday’s $12.66 (-$0.12) following last Wednesday’s $12.78. AGTC has fallen daily into a deep hole or chasm.  It’s been a merry-go-round; the last time we saw a lower close was October 21, 2015 at $12.65. I do have concerns that AGTC hasn’t reported financial results/earnings after Fidelity dumped their position and Biogen (BIIB) has been reviewing all internal programs and collaborations. AGTC will report financial results for Q2 after the market closes on Monday, September 12, 2016. AGTC management will host a conference call beginning at 5:00 pm ET that day to review results and provide a corporate update. I have taken MY hits with my LONG consideration of AGTC being oversold but, I am sticking by – Maintaining a BUY;

Aduro Biotech closed UP +$0.99 to $15.48 preceding Friday’s $14.49 (+$0.27). It has been a good short-term run by ADRO with Thursday’s $14.22, Wednesday’s $14.09, and Tuesday’s $13.95 and last Monday’s $13.74 followed by the previous Friday’s $13.39. As much as I have seen $14’s (dollar range), $15’s and a few $16’s in the past months, the middle of July stood out – the $12’s (dollar range stood out more frequently – Maintaining SELL;

BioTime (NYSEMKT: BTX) closed DOWN -$0.05 to $2.80. In the past sessions, we have seen last Friday’s $2.85, Thursday’s $2.84 and last Wednesday’s $2.94. August has seen nineteen (19) closes above $3.00. DuringQ2/16, BTX sharpened its focus on clinical progress and simplifying its corporate structure. BTX expects additional meaningful milestones from these programs in the second half of 2016. BTX’s public subsidiaries continue to demonstrate their ability to make solid clinical progress, strengthening its balance sheet by completing a successful public equity offering with gross proceeds of approximately $20.1 M from new and existing investors. Additionally, BTX deconsolidated Asterias Biotherapeutics (NYSEMKT: AST) from its financial statements as result of its recent financing. Oversold - BUY

Cellectis SA (CLLS) closed DOWN -$0.10 to $26.30 following Friday’s $26.40, Thursday’s $26.40 and last Wednesday’s $26.52. The aftermarket indication is positive +$0.33 or +1.25% to $26.63 - BUY

VistaGen (VTGN) closed UP +$0.44 to $4.07 after Friday’s $3.56 (-$0.06) post Thursday’s $3.62 (+$0.18) following Wednesday’s $3.44 (+$0.16) after last Tuesday’s $3.28 (+$0.31), Monday’s $2.99 and the previous Friday’s $3.07.  A steep peak stands out on the chart and I never trust being too long– 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.