September 12, 2017 7:21am
Key technical indicators especially market breadthare keeping the sector fluid
… As volume taints the upside and downside
Yet, sector equities are at their highs since the first of the year
… And exposure to ETFs is a little too high
Preview RMi's morning call. You’d be reading this if you were a SUBSCRIBER!
Pre-open indications: 1 BUY and 5 SELLs
If you had been right as many times as I have been in these many months of 2017 as a SUBSCRIBER you would know when to get in and out or get back in again!
It’s called premium content for a reason: the value of reporting the truth in this sector!
Critical pre-market indications ahead of “our” universe’s open!
Higher open expected
Dow futures are UP +0.22% and NASDAQ futures are UP +0.19%
U.S. stock index futures pointed to a higher open on Tuesday, as investors continued to track the impact the now former-Hurricane Irma will have on the U.S economy.
European markets opened higher as investors enjoyed a lull in the ongoing dispute with North Korea and the worst effects of Hurricane Irma appeared to subside.
Asia markets continued their ascent, following a firm lead from Wall Street as concerns faded over the potential damage of Hurricane Irma and as Korean Peninsula tensions took a backseat.
Data docket: the U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTS) report is due out at 10.00 a.m. ET.
Issues that affect the trading day: Markets were optimistic after it looked like Hurricane Irma had caused less damage than previously forecast. The UN Security Council voted to step up sanctions against North Korea
The cell therapy sector closed POSITIVE on Monday, Friday and Thursday, NEGATIVE on Wednesday and last Tuesday.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Monday closed POSITIVE with 20 decliners, 23 advancers and 0 flats;
· Friday closed POSITIVE with 16 decliners, 19 advancers and 8 flats
· Thursday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flat;
· Last Tuesday closed NEGATIVE with 27 decliners, 13 advancers and 3 flats;
Henry ’omics:
From last night’s (Monday) post… “Volume is spasmodic while momentum is fickle and evasive. The diagnosis: questionable with a confluence of deteriorating indicators as September moves forward. As the sector opened up, slipped at the mid-day and closed positive.”
As I had stated, “I was surprised as the sector felt some strength after the mid-day. Monday’s closing and the lack of continued downside could confuse many an investor but, the upside moves just delays the overbought becoming the oversold!”
After three (3) positive sessions, one wonders will there be a fourth (4) yet this markek – I believe rhe sector is and could be chasing the market.
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 +0.09% on Monday and a Tuesday’s pre-market is NOT indicating;
- The SPDR S&P Biotech ETF (XBI) closed Monday up +0.07% and Tuesday is indicating a NEGATIVE - 0.1%;
- The Health Care Select Sector SPDR ETF (XLV) closed up +0.78% on Monday and is indicating a POSITIVE +0.14% in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) closed up +1.03% on Monday and is indicating a POSITIVE +0.32% in Tuesday pre-open
Companies in my headlights:
Athersys (ATHX) closed down -$0.06 to $2.03 with 1.35 M shares traded after Friday’s $2.09 (+$0.02) with 826.9 K shares traded after Thursday’s $2.07 (+$0.02) with 1.739 M shares traded. Wednesday showed an upside to $2.05 with 3.275 M share trading following last Tuesday’s $1.86 with 1.381 M shares traded. Momentum is definitely a factor but, the issue of manufacturing concerns affecting a Helios partnership and ROW partnership capacity could be a serious factor going forward. Many have been burned in the past; just go back to 3/14’s $1.13 or 1/31’s $1.09 or 1/03/17’s $1.54. When the pit of your stomach feels the burn, time to lighten the load – one can always come back if I was early – Maintaining SELL;
Bellicum Pharmaceuticals (BLCM) closed up +$0.23 to $10.27 with 623.9 K shares traded <3 month average = 817.7 K shares>. 9/1 saw a price of $10.72, while 8/1 was $10.39 and 7/3 was $11.70 – an upside to be posed or an attitude for consideration. Sooner or later, someone will be coming for BLCM. The aftermarket indication is a positive +$0.12 or +1.17% - BUY;
bluebird bio (BLUE) closed up +$2.10 to $126.90 with 712.3 K shares traded after Friday’s $124.80 (-$4.40) after Thursday’s $129.20 (+ $2.70) . It’s been an up and down scenario with no news and good three sessions as BLUE advanced, $125.45, and $126.50 to $129.20 considering that on 8/30, the share price was $112.50. The aftermarket indication is a NEGATIVE -$0.25 or -0.2% - Maintaining SELL;
Cellectis SA (CLLS) closed up +$0.29 to $27.36 with 275.8 K shares traded <3 month average = shares>. In four (4) sessions, there is $2.40 in the pot, after three (3) positive sessions – traders will or could be looking for an exit as CLLS is a “flammable” equity. The aftermarket indication is a negative -$0.21 or -0.77% - SELL;
Fibrocell Science (FCSC) closed down -$0.04 to $3.26 with 91.7 K shares traded <3 month average = 67.7 K shares> following Friday’s $3.26 (-$0.02) with 91.7 K shares traded <3 month average = 67.7 K shares> following Friday’s $3.30 (+$0.40) with 457.2 K shares traded. FCSC still opens my eyes to an Icarus play. September started at $2.69, August 14 at $2.61 after a reverse. I never trust outcomes in the short and near-term – Maintaining SELL;
Verastem (VSTM) closed up +$0.12 to $5.41 with 2.29 M shares traded following Friday’s $5.29 (+$0.35) with 5.959 M shares traded following Thursday’s $4.94 (+$0.02) with 3.71 M shares traded after Wednesday’s $4.92 (+$1.08) with 20.8 M shares traded <the 3 month average = 1.44 M shares> after last Tuesday’s $3.84 (-$0.08), the previous Friday’s $3.92 (+$0.02), Thursday’s $3.90 (+$0.05) and Wednesday’s $3.85 (+$0.42), Tuesday’s $3.43 (+$0.05). It’s time to take some profit – BUY to 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.
