June 27, 2017 7:58am
The IBB and XLV aren’t indicating while the XBI is barely up and the IWM indicates a negative index
Is the old battle of the overbought heating up as the oversold simmer?
A great time to escape on the back of new highs as a holiday and a slower market evolves
Pre-open indication: eight (8), 2 BUY and 6 SELLS
A critical indication ahead of “our” universe’s open!
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I know what a company is supposed to look like, be like, and smell like to succeed!
Lower open expected
Dow futures are DOWN -0.11% and NASDAQ futures are DOWN -0.48%
U.S. stock index futures pointed to a flat to slightly lower open on Tuesday, as investors awaited data and key remarks from leading Federal Reserve members including Chair Janet Yellen.
European markets were lower after the president of the European Central Bank, Mario Draghi, defended the bank's loose monetary policy and said a premature ending to easing could lead to another recession.
Asian markets closed mixed as traders watched for signals from central bankers' speeches. Greater China markets were mixed. Hong Kong's Hang Seng Index gave up earlier gains to trade lower and markets in Indonesia were closed for a public holiday.
Data docket: the S&P /Case-Shiller Home Price Index due out at 9.00 a.m. ET. Consumer confidence and the Richmond Fed Manufacturing Index are also slated to be released, both out at 10 a.m. ET.
The cell therapy sector closed POSITIVE on Monday, Friday, Thursday and Wednesday and NEGATIVE last Tuesday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Monday closed POSITIVE with 15 decliners, 26 advancers and 2 flats;
· Friday closed POSITIVE with 14 decliners, 24 advancers and 5 flats;
· Thursday closed POSITIVE with 12 decliners, 27 advancers and 4 flats
· Wednesday closed POSITIVE with 13 decliners, 27 advancers and 3 flats;
· Last Tuesday closed barely NEGATIVE with 21 decliners, 20 advancers and 2 flat;
Remembering Monday’s closing bell newsletter, the sector “what news as the sector stays up … was continuing with some solid moves. While volume, on the whole was lower”
Reiterating, “Cell therapy stocks are more volatile than biotechs – there is more history of success or exits, making it easier to find stocks that are cheap relative to their cash needs.”
June is ending with the quarter this week topped-off by a holiday week where many will exit this market untrusting what might be coming up – so WHY be TOO LONG!
As I had stated last week, “ENJOY the high, this week will be the determinant as the week, month and quarter end and many traders retreat for the July 4th week … EARLY!”
What did I see on Monday, the DOW closed UP +0.07% (+14.79) as the NASDAQ closed DOWN -0.29% (-18.10) … the CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, near 9.7, breaking below 10 for the first time since June 9 following Friday trading near 10.02 … down -4.39% ..
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 down -0.32% on Monday, the aftermarket indicated a negative -0.01% and did NOT indicate in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Monday -0.26%, the aftermarket indication was a positive +0.19% and is indicating a POSITIVE +0.01% In Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.10% Monday, and is NOT indicating in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.12% on Monday, the aftermarket indication was a negative -$0.06 or -0.04% and is indicating a NEGATIVE -0.11% in Tuesday’s pre-open
Companies in my headlights:
………. We are back to measuring potential momentum for the sector …….
Athersys (ATHX) closed up +$0.02 to $1.57 following Friday’s $1.55 (-$0.03) after Thursday’s $1.58 (-$0.10), Wednesday’s $1.68 (+$0.18), Tuesday’s $1.50 and last Monday’s $1.48 and the previous Friday’s $1.42. June started at $1.42; saw a high of $1.68 and a low of $1.42. - Maintaining SELL;
Biostage (BSTG) closed up +$0.03 to $0.34 following Friday’s $0.31, Thursday’s $0.36, Wednesday’s $0.31 and last Tuesday’s $0.30. It’s a purely day trader play, who else would invest with the current terminal death suit hanging over BSTG’s head. Also, another two lay-offs as the new president removes anyone who questions his methods. Who will be left to file the IND which is now slated to be filed before the end of 2017 versus in Q3/17 – Maintaining SELL;
bluebird bio (BLUE) closed down -$0.90 to $111.10 following Friday’s $112.00 (-$6.50) after Thursday’s $118.50 (-$1.80) following Wednesday’s $120.30 (+$7.30). June started at $79.20; saw a high of $120.30 and a low of $79.20. After a good run, an offering is proposed as the share price dropped in the aftermarket -$2.10 or 1.89%. SELL;
Juno Therapeutics (JUNO) closed up +$0.70 to $29.70 after Friday’s $29.00 (+$2.02), Thursday’s $26.98 (+$0.55), Wednesday’s $26.43 (+$1.77), Tuesday’s $24.66 (+$0.46) after last Monday’s $24.20 (+$0.91). June started at $24.50; saw a high of $29.00 and a low of $21.68 having seen $24.20 twice in ten sessions. The aftermarket indication was a positive +$0.35 or +1.21% - Maintaining BUY;
Kite Pharma (KITE) closed down -$0.23 to $100.43 following Friday’s $100.68 (+$6.67), Thursday’s $93.99 (+$0.45), Wednesday’s $91.21 (+$1.92) and Monday’s $89.29 (+$1.44). June started at $74.66; saw a high of $100.68 and a low of $73.61. The aftermarket indication is a positive +$0.90 or +0.89% - Maintaining BUY;
Neuralstem (CUR) closed up +$0.37 to $6.33. June started at $5.21; saw a high of $6.33 and a low of $5.00. In the last seven (7) sessions there is a +20.2% premium, time to trade especially with an aftermarket indication that is a negative -$0.01 or -0.17%. – SELL;
Osiris (OSIR) closed up +$0.2985 to $6.18. June started at $6.05; saw a high of $6.19 and a low of $5.60 which was seen twice in the month. A new CEO’s announcement helps the pricing but, doesn’t lighten the load of its legal issues – SELL;
Regenxbio (RGNX) closed up +$0.90 to $22.80 following Friday’s $21.90 (+$0.80), Thursday’s $21.10 (+$0.60), Wednesday’s $20.50 (+$0.95), Tuesday’s $19.55 (+$0.45) and last Monday’s $19.10 (+$0.60). June started at $18.00; saw a high of $20.10 and a low of $18.00 having seen $19.10 twice in five (5) sessions. It’s getting a bit “rich” – a 16.89% premium in four sessions is tempting to traders – Maintaining SELL;
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.
