August 30, 2018 8:05am

A long holiday weekend is ahead; are investors sure they want to be that long?

Labor Day in the U.S. is 9/3; markets will observe regular hours on Friday to wrap up trading in August as most trading platforms will be shuttered Monday.

 

Pre-open indications: 1 BUY and 5 lighten the positions

 

RMi provides critical information for the U.S. trading day.

I answer one question, in which company should investors put, keep and commit their money!


U.S. stock index futures are headed south

Dow futures are DOWN -0.26% (-72 points) and NASDAQ futures are DOWN -0.19% (-14 points)

 

US stock futures are set for a negative open amid global trade developments

European stocks slump amid NAFTA negotiations;

Asian markets were broadly down after trading positive earlier in the session;

 

Data docket: jobless claims, personal income and outlays, and core personal consumption expenditure (PCE) figures are all due to be released at 8:30 a.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Thursday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Thursday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a -0.13% DOWNSIDE in Thursday’s pre-open

 

Henry’omics:

Are you … READY for more volatility?

Traders are anticipating that the relative calm that has pervaded the market throughout the summer is about to come to an abrupt end.

The coming holiday weekend (which starts today for the escapers) is a welcome respite for traders, who were already struggling through light volumes, and who can now focus on barbecues and beach time ahead of midterm elections and September, which has been known to be a traditionally choppy stretch for investors.

Where does it leave investors --- holding the picked-up “poop” bag?

SELL into STRENGTH and IF you have a strong percentage upside in equity – LIGHTEN the LOAD!

 

I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:

From Wednesday’s night’s newsletter: “Volume is still low with a few big moves to the upside but, generally it’s not an “earth shaking” session. I’m still nervous after the spike of another high as a long holiday weekend looms."

The iShares NASDAQ Biotechnology (IBB):

  • Wednesday closed up +1.3%
  • Tuesday closed up +0.49%
  • Monday closed up +1.75%
  • Friday closed up +0.17%;
  • Last Thursday’s -0.58%
  • For a five session aggregate of +2.54% - looking at the start of a downside reaction!

 

Of the 45 companies covered on Wednesday; 9 downside equities finished in a range of -0.20% (CLLS) to -3.13% (AST) while the 33 upside equities oscillated from +0.13% (FIXX) to +21.31% (KOOL +0.07) with 3 flat closes (RENE.L, PSTI and ADRO).

 

August’s measurement:

  • Of the past 5 sessions – 4 closed positive with 1 negative close,
  • Of the past 10 sessions –1 closed negative
  • Of the 19 August sessions – 6 had negative and 13 positive closes

 

Companies in my headlights – It’s your decision; I provide the idea and context:

BUY

Adverum Biotechnologies (ADVM)

 

Lighten the load, selling into strength:

Alnylam Pharmaceuticals (ALNY)

CRISPER Therapeutics (CRSP

Editas Medicine (EDIT)

Intellia Therapeutics (NTLA)

Verastem Oncology (VSTM)

 

 

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.