October 28, 2016 6:43am

 

I am maintaining my BUY positions on most oversold equities while those with weak and weakening cash positions need to be surrendered

Short-termism is defined by its hyphen

 

 

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

 

 

RegMed Investors’ (RMi) provides exclusive and original content; put your eyes on the page to figure out what’s really going on! 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 were the first to be hurt if I am wrong!

 

BUY and/or SELL: I am abstaining today

 

Indexes and ETFs: The IBB (-0.55%), IWM (-0.47%) are DOWN while the XBI and XLV (-0.16%) are NOT indicating

Dow futures are UP +0.19% and NASDAQ futures are UP +0.19%

 

U.S. stock index futures pointed to a flat jittery open on Friday as investors prepared for another slew of corporate earnings and the all-important U.S. GDP figures.

European markets were lower in early trade as earnings season continues amid heightened expectations that the U.S. Fed will raise rates in the near-term.

Asian markets were mixed as investors parsed a deluge of economic data and corporate earnings.

 

Data docket: The initial reading of U.S.' third-quarter GDP data is due out at 8.30 a.m. ET. According to a Reuters' survey of economists, the consensus forecast for GDP growth is expected at 2.5%.  GDP prices and the Employment Cost Index are also due out at 8.30 a.m. ET, while the latest consumer sentiment figures are due out at 10.00 a.m. ET.

 

 

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

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

·         Thursday closed NEGATIVE with 30 decliners, 10 advancers and 3 flats;

·         Wednesday closed NEGATIVE with 28 decliners, 14 advancers and 1 flat;

·         Tuesday closed NEGATIVE with 28 decliners, 9 advancers and 6 flats;

·         Monday closed NEGATIVE with 27 decliners, 10 advancers and 6 flats;

·         Friday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;

 

 

Remembering Thursday’s closing post, “The SCG&RT sector is rotating even further down after five down days, with an analogy to – no news is good news and bad news is sold into.

  • Speculative sentiment needs to peak but, there are no catalysts or milestones to support any pricing up-swing as too many momentum stocks are suffering from technical breakdowns!”

While a couple of quarterly reporting has been initiated, sentiment is expected to shift their focus to their blow-back.

  • Is it time for an upswing however - on a Friday? In this market, why be long over a weekend that … just doesn’t happen that often!

This sector is extremely undervalued, momentum conditions are awful, sentiment is dismal and I don’t envision change overnight plus we are at the advent of reporting season.

  • For the remainder of this month, quarter and year since I have outlined the weaknesses of the “current” share pricing positions - this breakdown has been grounded in speculation to the downside and won’t be broken easily.

Why am I not hearing any noise from companies or clamor? Don’t they have a view on valuations being stretched or that risks might be increasing or decreasing!

  • As far as the title is concerned …

The sector is afraid of forward-looking and material statements as boards of directors (BODs) and CEOs have forgotten what keeps them in their chairs – investors.

  • Until the level of communication is increased, traders will continue to sell aggressively – there is no counterbalance.

Investors WANT and NEED to hear from someone or anyone who “feels” the wallet pain as they do – not some removed CEO who can’t admit he or she dropped the ball.

 

 

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 +0.06% and is DOWN -0.55% in Friday’s pre-market;

·         The SPDR S&P Biotech ETF (XBI) closed Thursday down -1.48% and is NOT indicating in Friday pre-market;

·         The Health Care Select Sector SPDR ETF (XLV) closed up +0.32% Thursday and is NOT indicating in Friday’s pre-market;

·         The iShares Russell 2000 (IWM) closed down -1.14% on Thursday and is DOWN -0.47% in Friday’s pre-market.

 

 

Companies in my headlights:

·         All – the oversold and none specifically

 

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.