September 23, 2016 7:29am
… We should be prepared for a shadow …
There are some “peaky” charts and trading targets waiting for an arrow, will they skedaddle down the hole?
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: The IBB (-0.03%) and IWM (-0.10%) are DOWN while the XBI and XLV are NOT indicating
Companies in my headlights: BUY – AGTC, JUNO, KITE
SELL – AST, AXGN and FATE
Dow futures are UP -0.08% and NASDAQ futures are UP -0.12%
U.S. stock index futures pointed to a lower open on Friday as traders eyed the release of September manufacturing activity and comments from Fed speakers.
European stocks were lower in morning trade as investors paused for breath after recent gains and digested the latest data on manufacturing and services activity in the euro zone.
Asia markets ended mixed, as traders continued to digest announcements from the U.S. Federal Reserve and the Bank of Japan (BOJ).
Data docket: September flash manufacturing PMI released at 9:45 a.m. ET.
- Philadelphia Fed President Patrick Harker, Atlanta Fed President Dennis Lockhart and Cleveland Fed President Loretta Mester are scheduled to speak at noon in Philadelphia on a panel about the Fed's role in communities.
- Dallas Fed Robert Kaplan is set to speak at 12:30 p.m. ET at the Texas Oil & Gas Association Lone Star Energy Forum.
The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Thursday, Wednesday and Tuesday, NEGATIVE on Monday and POSITIVE and last Friday.
The SCG&RT sector’s record after the last 5 days (of 43 covered companies):
- Thursday closed POSITIVE with 16 decliners, 23 advancers and 4 flats;
- Wednesday closed POSITIVE with 17 decliners, 24 advancers and 2 flats;
- Tuesday closed POSITIVE with 18 decliners, 23 advancers and 2 flats;
- Monday closed NEGATIVE with 22 decliners, 16 advancers and 5 flats;
- Last Friday closed POSITIVE with 18 decliners, 24 advancers and 1 flat;
According to folklore, if it is cloudy when a groundhog emerges from its burrow on this day, then the spring season will arrive early, sometime before the vernal equinox; if it is sunny, the groundhog will supposedly see its shadow and retreat back into its den, and winter weather will persist...
- Remembering Thursday’s closing post, “The pace of sustainability in the sector, begets short-lived investment as risk-on trades create volatility. Sector actions speak louder than words.”
As much as I say – trade, sometimes it’s time to evaluate the topography versus the geography.
- There are some “peaky” charts and targets waiting for an arrow, whether they hit the mark or not is the question we should be prepared for …
Reiterating, traders are sure to be “lightening the load” as a weekend approaches. WHY be long?
The Q ends next Friday … anther reason as more development company losses are expected.
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 +0.86% and is DOWN -0.03% in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Thursday up +0.81% and is NOT indicating in Friday pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.76% Thursday and is NOT indicating in Friday’s pre-market;
- The iShares Russell 2000 (IWM) closed up +1.44% on Thursday and is DOWN -0.10% in Friday’s pre-market.
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed FLAT at $8.89 after Wednesday’s $8.89 (+$0.07) following Tuesday’s $8.82 and Monday’s $8.58. Forget all the banter and speculation on who is able or might buy whom; let me make it simple, AGTC’s stock is worth $9.87 in cash per share and has NO debt – Maintaining BUY;
Asterias Biotherapeutics (NYSEMKT: AST) closed UP +$0.24 to $4.75. The chart looks too “peaky” – take the money off the table and come back if there is more news to complement the last upside swing. Can’t trust too many upsides – we are here to make money – SELL;
AxoGen (AXGN) closed UP +$0.57 to $9.19. It is getting too “rich” again as a $9 plus seems to get sold-off. Is a $0.91 in three days upside worth the trade, depends on the ownership. 9/13, the stock was trading at $8.19. I’d dump it and come back for the next swelling – SELL;
Fate therapeutics (FATE) closed UP +$0.36 to $3.54. It has been a good month since 9/6, while the week has also swung to the upside. Counting down the week, yesterday’s $3.18, $3.19, Monday’s $3.00 and last Friday’s $2.92 and Thursday’s $2.79 and the previous Wednesday’s $2.71. Sell, consolidate and come back with a BUY but, for now – SELL;
Juno Therapeutics (JUNO) closed DOWN -$0.70 To $30.62 after Wednesday’s $31.32 (+$1.57). In July JUNO gaped to the downside on heavy volume, but prices did not make a new low. Prices recovered a bit in August and have retested the July lows this month which has seen lower peaks and lows. Always the contrarian – Maintaining BUY;
Kite Pharma (KITE) closed DOWN -$0.65 to $54.93 after Wednesday’s $55.58 (-$0.10) following Tuesday’s $55.68 (-$0.33). KITE had 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). Another contrarian pitch, let see who swings – Maintaining 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.
