October 3, 2019 8:52am

What went down will usually or mostly come back after a few bad sessions

Which road to follow   … buy and get trampled (sold into strength) in the next few sessions or sell and relieve the nervous tick in my eye or just plain good old - hold

The sector is … still what it is, until it isn’t and even then it doesn’t seem to be … that is after a deep breath

 

My version of the morning’s numbers is written to be informative than just about changes to fundamentals; it’s what happened or will beyond the headline and what could happen to the close

 

Dow futures are UP +0.10% (+27 points), S&P futures are UP +0.16% (+5 points) and NASDAQ futures are UP +0.22% (+17 points)

 

U.S. stock index futures pointed on Thursday to a flat and/or a minimally higher open as investors awaited the release of key economic data later in the day;

European stocks were mixed after the U.S. announced it would impose billions of dollars’ worth of tariffs on exports from the European Union as the pan-European Stoxx 600 hovered just above the flat line;

Asia pacific stocks fall as fresh trade concerns ramp up over EU tariffs. The U.S. is set to impose tariffs on European Union goods on October 18. Markets in China and South Korea were closed on Thursday for holidays;

 

Data docket: he Institute for Supply Management is scheduled to release its nonmanufacturing index reading for September at 10 a.m. . . Earlier in the week, ISM posted its weakest reading on the manufacturing sector in more than 10 years, sparking fears of an economic recession.

 

Henry’omics:

Shake it off after a race to a bottom, there are more road miles ahead and a positive session finish line!

The Dow dropped nearly 500 points on Wednesday, adding to Tuesday’s 344-point decline. The Dow’s two-day drop of more than 800 points or over 3% brings it back to levels seen in late August, which was the second down month of the year.

I’m still worried over Hong Kong and its spill-over of geo-political actions!

The service economy is a key factor in growth. The ISM measure of the U.S. services economy is expected to show continued expansion for last month, though at a slower pace than in August. The big economic number of the week comes Friday, when the government releases its September employment report. Economists expect it to show that nonfarm payrolls increased by 145,000 last month <CNBC>.

The factors of decline:

Impeachment – the Democrats will never get him, they’re too obstructionist and the rhetoric is too vociferous and shrill which will turn the popular vote against them.

Subpoenas are being drawn up for impeachment …

  • When I was in the FBI, one needed facts supported by evidence not manufactured by media stations!

Some market experts have suggested that the protracted trade war between the U.S. and China is beginning to impact growth. Delegations from Washington and Beijing are due to meet next week in the hope of finding a consensus.  In other trade news, the White House plans to widen its combative trade policy with 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, along with cheese from across the continent <CNBC>.

HOLD!

Wednesday night’s newsletter heading: “where the sector meets the road too long traveled. We need some or any positive news as earnings season is soon to real LPS (loss-per-share) and lower revenues followed by lower estimates and forecasts.”

  • The NASDAQ closed down – 123.44 (-1.56%);
  • The IBB closed down -0.78% while the XBI closed up +0.68%
  • The close was negative with an A/D line of 18/22, 3 flats and 2 acquired;
  • The range of the 18 upside was +0.35% (SGMO) to +7.78% (XON) while the 22 downside ranged from -0.21% (ONCE) to -23.70% (RENE.L);
  • 8 out of the 18 upside had higher than the 3 month average volume;
  • 15 out of the 22 downside had higher than the 3 month average volume;

 

  • October registered 2 negative close, so far …
  • September, there were 1 holiday, 11 negative, 7 positive and 2 non reported sessions;

 

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

*** Which road to follow   … buy and get trampled in the next few sessions or sell and relieve the nervous tick in my eye. Reiterating, don’t fire or BUY until you see the whites of their eyes, excuse me the green of any upside swing and even that will be fired or sold into ***

 

 

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.