August 25, 2017 7:36am
Sector sentiment seems to flip flop
As the weekends, with three (3) positive closes that followed two (2)negatives of which one was last Friday
Unless you’re holding aces or a straight flush …
I’d question being long over a summer weekend, how are you going to be able to afford the rum for all those weekend Pina coladas unless there is a profitable exit
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Pre-open indications: 1 BUY and 3 SELLs
Critical pre-market indications ahead of “our” universe’s open!
Higher open expected
Dow futures are UP +0.18% and NASDAQ futures are UP +0.32%
U.S. stock index futures pointed to a slightly higher open on Friday, as investors continued to focus their attention on the monetary policy symposium at Jackson Hole.
European markets edged slightly higher as investors awaited comments from central bankers at the Jackson Hole economic symposium. European Central Bank President Mario Draghi is due to address the Jackson Hole economic symposium at around 8 p.m. London time
Asia indexes closed higher on Friday, shaking off a slip on Wall Street due to uncertainty in Washington while investors anticipated an annual central banking symposium in Jackson Hole.
Data docket: durable goods are set to come out at 8.30 a.m. ET, while on the earnings front. Friday marks the second day of the 2017 Economic Policy Symposium on "Fostering a Dynamic Global Economy" at Jackson Hole, where leading central bankers are meeting. As part of this three-day event, both Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are both set to deliver remarks on Friday at the symposium, with investors watching the event closely for any indications when it comes to the outlook of each central bank's monetary policy program.
Political issues that affect the trading day: The chance of a government shutdown in the fall, should Congress fail to reach an agreement around the debt ceiling, may cause a surge in market volatility ahead.
The cell therapy sector closed POSITIVE on Thursday, Wednesday and Tuesday, NEGATIVE on Monday, Friday and last Thursday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Thursday closed POSITIVE with 18 decliners, 21 advancers and 4 flat
· Wednesday closed POSITIVE with 18 decliners, 21 advancers and 4 flats;
· Tuesday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Monday closed NEGATIVE with 20 decliners, 14 advancers and 9 flats;
· Last Friday closed NEGATIVE with 23 decliners, 17 advancers and 3 flat;
Henry ’omics:
As I had stated in Thursday evening’s post, “… here we go again … price actions scare me with many welcomed yet some questioned. There are just too many divergences re pricing performance. Since we’re headed or back into overbought territory … where was the news support?
- I believe … “A concerning signal”
One way to gauge an underlying trend in “our” universe is through the risk appetite of investors. Understanding that they aren’t in control anymore – its ETFs and algorithms and traders follow the new herd!
- When I see the sector run a dash with some serious dollar upticks over three (3) days; I feel and suggest a risk- off indication
The benefit of understanding the mood of the market is it allows you to align your trades in the direction of the market sentiment and again – I don’t FEEL it!
- I missed the signal (on Thursday), if there was one … but, I am sticking to My Wednesday’s statements …
“With so many uncertainties weighing on sector equities due to their being overvalued one day and undervalued the next; I am a bit perplexed that we saw an upward movement today.”
As I stated last night, “Momentum is ruling the day and shorting into this upside is where many will go … based on week’s past and the month’s activity!”
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 up +1.20% on Thursday and is NOT indicating in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) closed Thursday up +2.13% and is NOT indicating in Friday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.28% Thursday and is NOT indicating in Friday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +0.32% on Thursday and is indicating a POSITIVE +0.23% in Friday pre-open
Q2/17 reporting for … to date:
Regenerative Medicine Earnings Scorecard - Q2/2017 - to date … http://www.regmedinvestors.com/articles/9841
Companies in my headlights:
Adverum Biotechnologies (ADVM) closed up +$0.23 to $2.70. Monday closed at $2.40while the previous Monday closed at $2.55 and the month (august) started at $2.50 while July also started at $2.50. The aftermarket indication is a negative -$0.15 or -5.56% - SELL;
Bellicum Pharmaceuticals (BLCM) closed up +$0.66 to $8.62 with 1 M shares traded <3 month average = 737.9 K shares>. The aftermarket indication is a positive +$0.13 or +1.51% - BUY;
Kite Pharma (KITE) closed up +$1.96 to $140.13. Monday closed at $133.91 as the previous Monday closed at $122.86 while the month (August) started at $107.98 and July started at $104.43. Time to lighten the load. The aftermarket indication is a negative -$0.54 or -0.39% - SELL;
Osiris (OSIR) closed up +$0.35 to $6.15 on 2.49 K shares traded <3 month average = 28.2 K shares>. Two K shares drove +$0.35 – glaring sell for a company that’s not listed on NASDAQ for a reason of not filing appropriate Qs and Ks in addition to a federal indictment in NY’s Southern District Court. How many CEOs has the company had in the past two years – four (4). OSIR’s share price can’t be trusted until legal cases are adjudicated and fines settled – SELL;
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.
