October 19, 2016 7:31am

 

… The tenor of “our’ universe obviously changed on Tuesday with an upswing and increased pricing from the previous day

After five (5) down sessions and Tuesday’s positive close – another up day is due!

 

BUY: AST, ATHX, BTX and CLLS,

SELL: ISCO

 

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

 

Where is “our” universe going today?  If you are not a subscriber, you won’t know the morning’s indications and who is in the headlights.

 

I write in every line that investors need to avoid risks as if I was the first to be hurt if I am wrong!

 

 

RegMed Investors’ (RMi) willingness to provide the facts in evidence gets results that classify reality and veracity. 

 

 

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

Dow futures are UP +0.08% and NASDAQ futures are DOWN -0.06%

 

U.S. stock index futures pointed to a flat to slightly lower open on Wednesday, as investors got ready to wade through another influx of earnings reports, while monitoring for news on the Federal Reserve.

European stocks were mixed in morning trade, following a raft of data out of China which showed government spending had helped the world's second-largest economy to stabilize.

Asia markets mostly advanced, following government data that showed the Chinese economy grew in line with expectations for the July-September quarter.

 

Data docket: housing starts and building permits data are set to be released at 8.30 a.m. ET. Mortgage applications are also due out at 7.00 a.m. ET and Beige Book, due out at 2.00 p.m. ET.

  • San Francisco Fed President John Williams is set to speak at a conference hosted by Rutgers University around 8.45 a.m. ET. The event is expected to explore the issues impacting opportunities for minorities and women in the financial services industry;
  • Dallas Fed President Robert Kaplan will also chime in, speaking at the Mayor's International Luncheon in Fort Worth, Texas, which takes place in the early afternoon. New York Fed President William Dudley will be at The Lotos Club discussing New York's economic history, at 7.45 p.m. ET.

 

 

The stem, cell, gene and regenerative therapy (SCG&RT) sector closed POSITIVE on Tuesday, NEGATIVE on Monday, Friday, 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, 27 advancers and 4 flats;
  • Monday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats;
  • Friday closed NEGATIVE with 29 decliners, 12 advancers and 2 flats;
  • Thursday closed NEGATIVE with 31 decliners, 9 advancers and 3 flats;
  • Last Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 1 flat;

 

 

Remembering Tuesday’s closing post, “Love the upside. However, sustainability is equated with pricing’s ability to push through resistance levels … Needs to be more than a one day ticket as the iShares NASDAQ Biotechnology ETF is down 21.5% this year and has fallen 8% for the month as of Monday's close.”

Look closely at past days – trading ranges - I see patterns reflected a pricing trend range of:

  • Tuesday’s decline ranged from -0.24% to -6.58% in twelve (12) equities versus Monday’s range of -0.05% to –10.07%  in thirty-four (34) equities;

While the upside shows a pricing trend range of:

  • Tuesday’s upside ranged from +0.24% to +11.24% in twenty-seven (27) equities as compared to Monday upside ranged from +0.12 to +4.66% in seven (7) equities

More important is the action of leading stocks for medium-term momentum investors and traders. They will hold the key to gauging the probability of successful speculation.

 

Unfortunately for investors, the stem, cell, gene and regenerative therapy (SCG&RT) sector hasn’t been able to hold on to gains lately.

 

 

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 day up +1.40% and is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) closed Tuesday up +1.39% and is NOT indicating in Wednesday pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) closed up +1.20% Tuesday and is NOT indicating in Wednesday’s pre-market;
  • The iShares Russell 2000 (IWM) closed up +0.57% on Tuesday and is projected DOWN -0.02% in Wednesday’s pre-market.

 

 

Companies in my headlights:

Asterias Biotherapeutics (NYSEMKT: AST) closed DOWN -$0.05 to $3.60. AST has taken its hits this past week following Monday’s $3.65, Friday’s $3.82, Thursday’s $3.79 and last Wednesday’s $3.65 post the previous Tuesday’s $3.88 and Monday’s $4.07. AST usually has decent short term momentum; I’d take the bet – BUY;

Athersys (ATHX) closed UP $0.04 to $2.01. ATHX is oversold in comparison to 10/3’s $2.06, 9/1’s $1.94, 8/1’s $2.17 and 7/1’s $2.22. ATHX received FDA approval under the Special Protocol Assessment for a P3 study of MultiStem treatment for ischemic strokes. ATHX’s MultiStem cell therapy “claims” to deliver therapeutic benefit in multiple ways. It includes production of factors that protect the injured neurons, reduce inflammation, supplement tissue healing and the repair process, and enhance formation of new blood vessels. The therapy is an “off-the-shelf” product, making it convenient for timely administration by the patient’s caregivers. Recently, Athersys' Japanese partner, HEALIOS KK, was successful in securing approval from Japan's Pharmaceutical and Medical Devices Agency of its clinical trial notification, allowing it to initiate a clinical trial evaluating the safety and efficacy of the administration of its MultiStem cell therapy for the treatment of ischemic stroke in Japan – BUY;

BioTime (NYSEMKT: BTX) closed UP +$0.03 to $3.54 following Monday’s $3.51, Friday’s $3.54, Thursday’s $3.60 and last Wednesday’s $3.54, the previous Tuesday’s $3.66 and Monday’s $3.80. The past five sessions have been successive speed bumps, it’s time for a break-out – not too far but, up. Also if AST moves, BTX should be just behind it – BUY;

Cellectis SA (CLLS) closed DOWN -$0.36 to $19.55. Oversold as Monday’s $21.51, Friday’s $22.09, Thursday’s $22.91 and last Wednesday’s $22.72. 9/1’s $26.40 followed 8/1’s $27.10 post 7/1’s $27.25 and 6/1’s $32.51. Might be time to play the past value card – BUY;

International Stem Cell (ISCO) closed UP +$0.185 to $1.845 on the basis of a rodent model press release. ISCO never holds its “water” – 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.

Henry’s comments are for informational purposes only and are not a substitute for personalized advice. Consult your advisor about what is best for you.