September 7, 2017 7:52am
As speculation runs rampart in buy and sell behaviors
… Although assumptions on the trajectory of pricing are a recurrent or rhythmical pattern of decline and regrowth
Habituated by current valuation
… After a while, one almost understands the ebb of the overbought and flow to the oversold
Preview RMi's morning call. You’d be reading this if you were a SUBSCRIBER!
Pre-open indications: 2 BUY and 3 SELLs
Critical pre-market indications ahead of “our” universe’s open!
Critical pre-market indications ahead of “our” universe’s open!
Slightly higher open expected
Dow futures are UP +0.01% and NASDAQ futures are UP +0.11%
U.S. stock index futures pointed to a slightly higher open on Thursday, as investors geared up for speeches from leading Federal Reserve members, as well as awaiting news from the European Central Bank's latest Governing Council meeting.
European markets edged higher, as investors awaited the European Central Bank's (ECB) monetary policy decision later in the day.
Asian markets closed higher, following the stronger lead from Wall Street overnight on political developments out of Washington.
Data docket: jobless claims and productivity and costs are set to come out at 8.30 a.m. ET, followed by the quarterly services report, due out at 10 a.m. ET.
Issues that affect the trading day: investors will also be paying close attention to news coming out of Washington D.C.. In the last few days, investors have been digesting the comments surrounding the U.S.' reaction to North Korea, in addition to news surrounding the end of Deferred Action for Childhood Arrivals (DACA).
The cell therapy sector closed NEGATIVE on Wednesday and Tuesday, was closed on Monday, a holiday; having closed POSITIVE on Friday and last Thursday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flat;
· Tuesday closed NEGATIVE with 27 decliners, 13 advancers and 3 flats;
· Monday was a holiday and the markets were closed in observance of Labor Day;
· Friday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;
· Last Thursday closed POSITIVE with 14 decliners, 27 advancers and 2 flats;
Henry ’omics:
As I had stated in Wednesday evening’s post, “…Cell and gene therapy companies were on the plus side at the open through the mid-day” … and then came the spiral to the downside.
I have a lot of concern with the abruptness of declines and sharp spikes of inclines.
It’s a question of which incline can stay hot as the pendulum of profiteering swings … the problem of the inclines is what is in the basket to keep a stock moving …?
One solid result ebbs the flow into equity but, as quickly as the patter of little feet – it can disappear and slowly fade into an upcoming quarter’s oblivion.
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 +0.39% on Wednesday with Thursday’s pre-market indicating a NEGATIVE -0.78%;
The SPDR S&P Biotech ETF (XBI) closed Wednesday up +0.29% with Thursday NOT indicating a in the pre-market;
The Health Care Select Sector SPDR ETF (XLV) closes up +0.48% on Wednesday and is NOT indicating in Thursday’s pre-open;
The iShares Russell 2000 (IWM) closed up +0.21% on Wednesday and is indicating a POSITIVE +0.01% in Thursday pre-open
Companies in my headlights:
Applied Genetic Technologies (AGTC) closed up +$0.15 to $4.65 with 111 K shares traded after Tuesday’s $4.50 (-$0.20) with 201.4 K shares traded <3 month aver = 190 K shares>. The CMO just resigned and an “interim” – always a sign of future problems and still NO Q4 or FY17 results yet, possibly on the 13th … New CFO and legal’ what we should be seeing is a new CEO who can communicate to shareholders, NOT be locked-in a corporate office with a PR team that can’t communicate, if they ever try – Maintaining SELL;
Cellectis SA (CLLS) closed down -$0.70 to $24.96 after Tuesday’s $25.66 (-$6.52) following Friday’s $32.18 (+$3.42) and Thursday’s $28.76 (+$0.52). Yesterday, CLLS received notice from the U.S. FDA that a clinical hold was placed on both UCART123 ongoing P1 studies, respectively in acute myeloid leukemia (AML) and in blastic plasmacytoid dendritic cell neoplasm (BPDCN). Cellectis is working closely with the investigators and the FDA in order to resume the trials with an amended protocol including a lowered dosing of UCART123. The pre-market indication is a NEGATIVE -$0.15 or -0.60% - Maintaining SELL;
Juno Therapeutics (JUNO) closed down -$1.27 to $41.41 after Tuesday’s $32.68 (+$0.76), Friday’s $41.95 (+$0.65) and Thursday’s $41.27 (+$0.98). So much for the KITE and NVS news, the aftermarket indication is a POSITIVE +$0.24 or +0.58% - OVERSOLD thus the change of SELL to BUY;
Sangamo Therapeutics (SGMO) closed down -$0.60 to $12.95 with 2.46 M shares traded after Tuesday’s $13.66 (-$0.70) with 3.21 M shares traded < the 3 month average = 1.462 M shares> after Friday’s $14.25 (+$0.90) on solid 5 M shares traded after Thursday’s $13.35 (. +$0.50) with 1.6 M shares traded >. The month has seen lows of $8.40 and last Friday’s high of $14.25 having opened the month at $8.45. The price is resting on the laurels of KITE and NVS and a Pfizer (PFS) collaboration but, why should it pull a trigger to buy if it has a strangle hold on anyone else intruding on their deal. The aftermarket indication is a POSITIVE +$0.35 or +2.70% - When the winds of momentum change, it’s time to change a SELL to BUY;
Verastem (VSTM) closed up +$1.08 to $4.92 with 20.8 M shares traded <the 3 month average = 970.9 k shares> after Tuesday’s $3.84 (-$0.08), Friday’s $3.92 (+$0.02), Thursday’s $3.90 (+$0.05) and the previous Wednesday’s $3.85 (+$0.42), Tuesday’s $3.43 (+$0.05) and Monday’s $3.28 (-$0.01). The pre-market indication is POSITIVE +$0.03 or +0.61% and the upside is slowing as the top of $5.50 was hit and eroded, it’s to be expected that many will profit from the upside incline for what can keep the share appreciating beyond this news? There were or are 1.61 M shares short of a float of 29.22 M shares and outstanding of 36.99 M; the 50 day moving average is $3.50 and the 200 is $2.43 – leaving serious room for a big downside. BUY to SELL, even if I am early;
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.
