September 21, 2016 7:25am

… Until we get some illuminating news, the path of least resistance is lower

 

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

 

Where is “our” universe going today?  Astute investors subscribe, you should too! 

 

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!

 

 

Indexes and ETFs: IWM (+0.43%) and XBI (0.25%) are UP while the IBB and XLV are NOT indicating

Companies in my headlights:  BUY – KITE,

SELL –   ADVM, BLCM and BLUE

Dow futures are UP +0.40% and NASDAQ futures are UP +0.53%

 

 

U.S. stock-index futures rose on Wednesday as European and Japanese shares rallied followed the Bank of Japan's major overhaul of its policy and traders awaited the U.S. FED's announcement.

European stocks rallied in morning trade after the Bank of Japan announced new monetary policy measures and as investors awaited the outcome of the U.S. Federal Reserve's meeting.

Asian markets were up as Japanese shares rose on Wednesday after the Bank of Japan (BOJ) announced it would modify its monetary policy framework.

 

Data docket: The Fed will announce its latest policy decision on Wednesday at 2 p.m. ET, with Fed Chair Janet Yellen briefing the media at 2:30 p.m. ET. Market consensus is for the central bank to hold its base rate in the 0.25-0.50 percent range and not lift again until December.

 

 

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

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

  • Tuesday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
  • Monday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats;
  • Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
  • Thursday closed POSITIVE with 10 decliners, 29 advancers and 4 flats;
  • Last Wednesday closed POSITIVE with 13 decliners, 26 advancers and 4 flats;

 

 

Remembering Tuesday’s closing post, “The usual week reeks of spikes in volatility to the downside, and then followed by one or two maybe three up days in the sector. As the sector ends Q3 in eight (8) sessions, be ready for the declines in pricing.  From my point of view, when you have strength in the stem, cell, gene and regenerative therapy (SCGT&RM) companies, it’s a sign of risk-on and should be taken as a play for defense in this market.”

  • While no indicator can forecast price, volatility and volume moves or work in this atmosphere, I define sentiment that mitigates risk and manage entry, exit and re-entry points.

There is no perfect time frame or even numbers which are purely subjective based on a qualitative and quantitative approach that each investor should evaluate their risk level.

  • Many analysts seem incapable of divining the short-term future; they can't even seem to agree on what should … materialize!

 

That’s where I come in to assemble a synthesis to follow or at least choose from …

 

 

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 +1.43% and is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday up +2.46% and is UP +0.25% in Wednesday pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +0.31% Tuesday and is NOT indicating in Wednesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed down -0.42% on Tuesday and is UP +0.43% in Wednesday’s pre-market.

 

 

Companies in my headlights:

Adverum (ADVM) closed UP +$0.29 to $4.09. ADVM has been skyward for five days having been priced at $3.62 on 9/14. The stock’s upside is too capricious to let it sit unattended - SELL;

Bellicum (BLCM) closed UP +$0.27 to $19.71. In a filed 8-K, BLCM increased its debt <loan agreement> from Hercules Capital from $15 M with another $5 M take-down – SELL;

bluebird bio (BLUE) closed UP +$2.82 to $73.77. It has been a good September which started at $49.33; BLUE has floated through the $50’s to the $60’s and for two days hit the $70’s on 9/15 and 9/16. When BLUE gets rich, I am a take a profit while one can to come back for another leg-up - SELL;

Kite Pharma (KITE) closed DOWN -0.33 to $55.68. KITE has entered into an exclusive, worldwide license with the National Institutes of Health (NIH) for intellectual property related to multiple T-cell receptor (TCR) based product candidates for the treatment of tumors expressing mutated KRAS antigens. KITE expects the first of the licensed KRAS product candidates to enter clinical study in 2016 as part of the Company’s Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute (NCI) under the direction of Steven A. Rosenberg, M.D., Ph.D., Chief of the Surgery Branch at the NCI.  The aftermarket is positive +$0.88 – 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.