July 11, 2017 8:02am
… With no perceived fizzle
Are traders avoiding the betting window ahead of key events later this week?
A critical indication ahead of “our” universe’s open!
Pre-open indication: six (6) with 2 BUY and 4 SELLs
This is a limited-time preview of RegMed Investor's morning call. Subscribe today to get the pre-open briefing, plus daily access to the happenings and realities of “our” universe
……. SUBSCRIBE
I know what a company is supposed to look like, be like, and smell like to succeed!
Flat to lower open expected
Dow futures are DOWN -0.03% and NASDAQ futures are DOWN -0.04%
U.S. stock index futures pointed to a relatively flat or lower open on Tuesday, as investors prepared themselves for a slew of data announcements and speeches by members of the U.S. Federal Reserve.
European bourses were higher Tuesday morning, following a trend of gains across the U.S. and Asia, as investors kept a close on eye on oil prices and looked ahead to a new earnings season.
Most Asian indexes made gains on Tuesday, with the yen falling to its weakest levels in around four months against the dollar. Taiwan-listed companies that were part of Tesla's supply chain were mixed after shares of the automaker gained during U.S. trade. Investors also awaited cues from Federal Reserve Chair Janet Yellen later in the week
Data docket: the National Federation of Independent Business (NFIB) small business optimism index slipped to 103.6 in June from 104.5 in May. Wholesale trade and the Labor Department's JOLTS (Job Openings and Labor Turnover Survey) report are also due at 10 a.m. ET.
The cell therapy sector closed NEGATIVE on Monday, POSITIVE on Friday, NEGATIVE on Thursday, and POSITIVE on Wednesday as last Tuesday was a holiday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Monday closed NEGATIVE with 29 decliners, 11 advancers and 3 flats;
· Friday closed POSITIVE with 13 decliners, 28 advancers and 2 flats;
· Thursday closed NEGATIVE with 30 decliners, 10 advancers and 3 flats;
· Wednesday closed barely POSITIVE with 19 decliners, 20 advancers and 4 flats;
· Last Tuesday the market was closed;
As I had stated, the sector stuttered step yesterday … the cell therapy sector equities seem to have entered into another bout of wait-and-see trading as the moves of recent days begin to settle down.
… A number of oversold – will they get bid-up while I believe trading will still skim more of the downs.
What did I see on Monday, the sector got slammed to the mat after Friday’s “raised gloves” of a one round victory close? Traders are getting ready for Q2 results which are being prepared … the sector NEEDS some catalysts but, what will matter are spending and cash positions as most development “plays” have been announced.
… Athersys (ATHX) will start the reporting on 8/9/17 …
By the numbers, Monday, The NASDAQ and the S&P 500 finished higher Monday while the Dow closed fractionally lower. The Dow dropped (-0.03%) after clinging to modest gains over the session, finished with a loss of 5.82 points, or less than 0.1%, at 21,408.52. The S&P 500 index SPX (+0.09%) advanced 2.25 points, or 0.1%, to close at 2,427.43.
On Friday, markets finished higher for the session and week on the back of a rebound in tech stocks with the Dow (+0.44%) rising 0.3% for the week, the S&P 500 index SPX, rising (+0.64%) less than 0.1% for the week and the Nasdaq (+1.04%) advancing 0.2% for the week
... Heck of a reverse … ready for another or are we going th hunker-down?
The iShares Nasdaq Biotechnology ETF (IBB):
… Ready for another opposite reaction …
Monday closed down -0.81% while …
Friday closed up +2.01%
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 -0.81% on Monday, and is NOT indicating in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Monday down -1.50%, and is NOT indicating In Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed down -0.19% Monday, and is NOT indicating in Monday’s pre-open;
- The iShares Russell 2000 (IWM) closed down -0.43% on Monday, and is indicating a NEGATIVE -0.34% in Tuesday’s pre-open
Companies in my headlights:
bluebird bio (BLUE) closed down -$5.80 to $94.00 on large volume of 1.726 M shares <3 month average = 986 K shares> . There are still plenty of hurdles remaining for BLUE’s bb2121 which is partnered with Celgene (CELG). Some fund are lightening the load. The aftermarket indication is a negative -$0.90 or -0.96% - SELL;
Juno Therapeutics (JUNO) closed down -$0.96 to $28.15 with some big volume of 1.452 M shares traded < month average = 1.824 M shares>. The aftermarket indication is negative -$0.18 or -0.64% and the pre-market is also negative -$0.55 or -1.89% - SELL;
Kite Pharma (KITE) closed down - $4.50 to $101.03 with big volume of 1.75 M shares traded <3 month average = 1.28 M shares>. Another – OVERSOLD – BUY;
Neuralstem (CUR) closed down -$0.12 to $5.79 after Friday’s $5.91 (+$0.33). Last week’s CUR was added to the NASDAQ Microcap® Index as part of the FTSE’s annual reconstitution of its family of U.S. indexes on June 26th. The shares have run – hot and cold, J une started at $5.21, May at $4.80, April at $5.14 and March at $4.57 with a four (4) month low of $2.93. FIVE (5) ETFs have exposure … I would lighten the load even if it jumps as CUR completed dosing of the last subject. Risk has its reward; I’d take the safer route – Maintaining SELL;
Spark Therapeutics (ONCE) closed down -$1.95 to $59.88. The aftermarket indication is a positive +$1.0248 or +1.71%; one word – OVERSOLD – BUY;
Verastem (VSTM) closed down -$0.17 to $3.45 after Friday’s $3.62 (+$0.17) after a push by Raymond James. VSTM was a big mover, as the company saw its shares jump almost 42% on the day. The move came on solid volume with far more shares changing hands than in a normal session. This continues the recent uptrend for the company as the stock is now up over 62% in the past one-month time frame. However, July started at $2.10, June started at $2.18, May at $2.16, April at $2.04, March at $1.15, February at $1.28 and January at $1.15 -- what about all those investors who HAD hung on and were unhappy for many months. I’d continue WALKING; the aftermarket indication is a negative -$0.03 or -0.83% – 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.
