September 16, 2016 7:59am
… Prepare for a quadruple witching expiration Friday
Indexes and ETFs: The IBB (-0.57%), IWM (-0.59%) and XBI (-1.12%) are DOWN and the XLV is NOT indicating
The Dow futures are DOWN -0.38% and NASDAQ futures are DOWN -0.30%
I answer one question; in which company should investors put, keep and commit their money!
Companies in my headlights: SELL – BSTG, CAPR, CLBS, ONCE and STML
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I say what others won't, so you can do what others can't!
How does the old saying go? It's easier to ask for forgiveness than ask for permission. Maybe it's the other way around. Whatever the case, to the extent I need to, I'm NOT going to ask for forgiveness for what I say – someone NEEDS to speak up and out!
U.S. stock index futures indicated a lower open on Friday morning as traders eyed the release of key inflation data and looked ahead to next week's meeting of the U.S. FED.
European stocks were trading lower with banks taking a beating after news of a large fine for Deutsche Bank and as global markets look to next week's meeting of the Federal Reserve's policymaking committee.
Asian stocks rose in a relatively quiet session as several markets in the region were shut, while traders looked ahead to next week's key central bank meetings in the U.S. and Japan.
Data docket: CPI is due at 8:30 a.m. ET, with consumer sentiment set to come out at 10:00 a.m. Markets will focus on what the data means for the Fed, but any action at its meeting next week has largely been written off.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Thursday and Wednesday, NEGATIVE on Tuesday, POSITIVE on Monday and NEGATIVE last Friday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Thursday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;
- Wednesday closed POSITIVE with 13 decliners, 26 advancers and 4 flats;
- Tuesday closed NEGATIVE with 34 decliners, 5 advancers and 4 flats;
- Monday closed POSITIVE with 11 decliners, 30 advancers and 2 flats;
- Last Friday closed NEGATIVE with 37 decliners, 5 advancers and 1 flat;
Remembering Thursday’s closing post, “Volatility puts a hex on upside pricing. Volume is still low and vulnerable to be traded into as “our” universe is long on risk.”
- Today is a quadruple <equity, index, and options> expiration Friday … on top of a projected down day!
Triple-witching Fridays have historically generated elevated levels of both volatility and volume, and can often lead to sharp swings in stocks.
- However, while these rare occasions have proven to be bullish during the past year, it's difficult to establish a concrete pattern, leaving the “freak” open to interpretation.
Investors need to have one foot in the sector, but the other straddling the exit door. What’s working to make money in the stem, cell, gene and regenerative therapy sector is trading.
A retracement of the sector is DUE!
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 +1.48% and is DOWN -0.57% in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Thursday up +1.61% and is DOWN -1.12% in Friday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +1.03% Thursday and is NOT indicating in Friday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +1.19% on Thursday and is DOWN -0.59% in Friday’s pre-market.
Companies in my headlights:
Biostage (BSTG) closed UP +$0.01 to $1.01 after being DOWN -$0.01 to $1.00. The past five sessions say it all: $1.00, $1.02, $1.09, $1.10 and $1.12. The warrants from the previous “raise” at $1.76 are now coming due to be registered; historically, a share offering <burdened by warrants> will be sold and the warrants clipped with a short initiated. BSTG NEEDS another “raise” of offering by Q1/17. How can they achieve a higher share price beyond the last financings price of $1.76, or are they headed to a DOWN <pricing> offering? Maintaining SELL;
Capricor (CAPR) closed DOWN -$0.07 to $3.83. CAPR announced an offering with NO numbers yet! Be ready for a big discount, outsized warrant coverage and depreciation - SELL;
Caladrius Biosciences (CLBS) closed UP +$0.67 to $5.01. Who is kidding whom, as CLBS jumped after a “tranched” fund raising – part with Aspire Capital, they are not an institutional firm. Everyone one knew after the reverse of shares, a financing would ensue. For a company that spends money like it drinks water and a CEO who has depreciated stakeholders’ investment, who can believe anything other than keeping the lights on the “newest” Taj Mahal HQ in “polo town”, NJ. CLBS needed the net proceeds to paying down principal and interest payments on its $10 M loan from Oxford Finance, LLC – SELL;
Spark Therapeutics (ONCE) closed UP +$1.14 to $62.24. How long can a good week last, following Wednesday’s $58.94, Tuesday’s $57.13, Monday’s $59.90 and last Friday’s $58.29? Time to take a safe road by selling and come back – SELL;
Stemline (STML) closed UP +$0.20 to $9.57 after Wednesday’s $9.37 (+$0.73). The chart is “peaky” while pricing is susceptible to a trading attack after Tuesday’s $9.01 and Monday’s $8.30 following last week’s Friday $8.30, Thursday’s $9.16 and last Wednesday’s $8.59. TOO sketchy – 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.
