August 29, 2018 7:31am

August is coming to an end (2 days) after 18 sessions – 5 had negative and 13 had positive closes; in the past 5 sessions – 4 closed positive with 1 negative close and of the past 10 sessions – 2 had closed negative

Pre-open indications: 2 BUYs although there are more than a few - overbought

 

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

 

In compiling my indication signals, I draw on logic, historical precedents, specific knowledge of the sector and its practices as to lessons learned.  It’s important for investors to identify and determine which indication is actual performance based.

 

U.S. stock index futures are mixed and slipping

Dow futures are DOWN -0.02% (-6 points) and NASDAQ futures are UP +0.15% (+11 points)

 

U.S. stock index futures posted gains ahead of Wednesday's open, as investors’ awaited news surrounding trade talks between the States, Mexico and Canada.

Markets in Asia and Europe tried for gains Wednesday, as market participants kept abreast of news surrounding a trade agreement between the U.S. and other major economies.

 

Data docket: mortgage applications are due out at 7 a.m. ET, while pending home sales figures due out at 10 a.m. ET.

  • Strike one: Total mortgage application volume decreased 1.7% last week and was 15% lower than a year ago, according to the Mortgage Bankers Association's seasonally adjusted report. Weakening affordability is making potential homebuyers gnash their teeth this summer, and it is taking a real bite out of the mortgage market.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a +0.3% UPSIDE in Wednesday’s pre-open

 

Henry’omics:

Many traders are escaping the heat to a beach or lake while investors have stayed complacent as equities have grown with the sunshine but, there are some dark days ahead!

The sector’ upside WON’T last days maybe a week.

If the traders won’t jump, the algorithms will “rule” and some carnage will ensue!

Watch those CRISPR equities – CRSP, EDIT and NTLA – they might run free but, their necks will be broken – here are no eggs yet, so wring a few necks to cook on the grill!

 

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

From Tuesday’s night’s newsletter: “the rising of resistance which is predetermined level of equity’s price which it is thought that the price will tend to reverse.”

The iShares NASDAQ Biotechnology (IBB):

  • Tuesday closed up +0.49%
  • Monday closed up +1.75%
  • Friday closed up +0.17%;
  • Thursday’s -0.58%
  • Wednesday’s +0.71%,
  • For a five session aggregate of +2.54% - looking at the start of a downside reaction!

Of the 45 companies covered on Tuesday; 15 downside equities finished in a range of -0.01% (RARE) to -15.88% (IONS) while the 28 upside equities oscillated from +0.25% (BCLI) to +27.15% (KOOL) with 2 flat closes (CUR and HSGX).

August’s measurement:

  • Of the past 5 sessions – 4 had closed positive with one negative close,
  • Of the past 10 sessions – 2 had closed negative
  • Of the 18 August sessions – 5 had negative and 13 positive closes

 

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

Mesoblast (MESO) closed down -$0.22 to $5.80. MESO announced that Tasly Pharmaceutical Group has received People's Republic of China governmental approvals of Overseas Direct Investment from Tianjin Commission of Commerce and Tianjin Development and Reform Commission to enter into an investment agreement as well as a development and collaboration agreement with Mesoblast to commercialize cell therapies for cardiovascular diseases in China. Under the terms of the agreements with Tasly, on closing MESO will receive US$40 million, comprising a US$20 million upfront technology access fee and US$20 million for equity in MESO purchased by Tasly at AUD$1.86 per share. The transaction is subject to filing with the State Administration of Foreign Exchange - BUY

Ultragenyx (RARE) closed down -$0.01 to $78.65. Its drug Mepsevii got EU approval - Crysvita received EU conditional marketing authorization in February 2018 for the treatment of XLH with radiographic evidence of bone disease in children one year of age and older, and adolescents with growing skeletons. A filing to expand the label in order to include adults with XLH is also planned. It is the only treatment that targets the underlying cause of this rare, hereditary, lifelong disease and can generate significant sales – BUY;

…. Everyone deserves a vacation – but, circumstances sent us back to reality on Tuesday night!

 

 

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.