December 1, 2017 8:02am
The question is, what will propel the month’s and year’s end pricing conundrum
It’s just not about being oversold, breaching a moving average or ETF exposure but, what “factor” will truly create a BUYING opportunity that’s sustainable
Pre-open indications: 0 BUY, 4 SELL and 1 HOLD
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Lower open expected
Dow futures are DOWN -0.24% (-58 points) and NASDAQ futures are DOWN -0.65% (-41.5 points)
U.S. stock index futures pointed to a lower open Friday, pulling back from the highs seen on Wall Street in the previous session, as progress on a tax bill stalled in the Senate.
European markets were lower, as global investors awaited the U.S. Senate's vote on tax reform legislation.
Asia markets were mixed, giving up some of the early morning gains. That came despite a positive lead from the U.S. that included the Dow Jones industrial average closing above 24,000 for the first time.
Issues that will affect the trading day: Senate Republicans delayed voting on their tax bill on Thursday. The setback concerned a fiscal "trigger" that forced lawmakers to patch up the plan only hours before a planned final vote.
Data docket: Manufacturing PMI is due out at 9:45 a.m. ET, followed by Manufacturing ISM report on business and construction spending — both of which are due out at 10 a.m. ET.
Issues on the political front: Again, the tax bill …
Henry’omics:
From Thursday night’s closing bell post, “up but, not totally away. The oversold expected were up, the compromised were still down while the lucky closed flat. As I had stated in the a.m. post, ‘… the oversold are ripe although I wouldn’t chase any equity’! In a review the spectrum of the upside, it’s widely laddered to the low and high side upsides.”
As I had stated, “I ‘feel’ the ups and I believe the algorithms followed their calculations set by their ‘rules’ as the ETF exposure solidified their positions in regard to today’s actions!”
It’s all about the tax-overhaul circus as December kicks off, with Mitch McConnell promising action this morning. The Senate majority leader pledged votes related to the tax bill at 11 a.m. Eastern Time?
The big question is how much the Dow, NASDAQ and S&P will drop if the legislative effort unravels. The market rose by 300+ on the hopes of a deal. Now that the deal has been scuttled, I fully expect the market to rise by another 300.
Cell therapy and the RegMMed sector is suffering just another bout of short-termism!! Like my current state of pneunomia, the "horse pills" are smaller and red - I am staying in a warm place and NOT close to any controversy.
In the RegMed and cell therapy sector, Thursday closed Positive following Wednesday, Tuesday and Monday’s NEGATIVE closes as last Friday closed POSITIVE.
The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):
· Thursday closed POSITIVE with 11 decliners, 28 advancers and 4 flats;
· Wednesday closed NEGATIVE with 22 decliners, 18 advancers and 3 flats;
· Tuesday closed NEGATIVE with 23 decliners, 15 advancers and 5 flats;
· Monday closed NEGATIVE with 29 decliners, 11 advancers and 3 flats;
· Last Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;
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) is indicating a an extreme NEGATIVE -88.89% in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a NEGATIVE -0.11% in Friday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Friday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a NEGATIVE -0.63% in Friday’s pre-open
Companies in my headlights:
AxoGen (AXGN) closed up +$1.00 to $26.70. After a flip-flopping week after Wednesday’s $25.70, Tuesday’s $25.80, Monday’s $25.85 and last Friday’s $25.05 – SELL;
bluebird bio (BLUE) closed up +$5.50 to $172.80 after Wednesday’s +$0.85 to $167.30 with moderate 722.4 K shares traded after Tuesday’s -$1.30 or -0.77% to $166.45 with low volume of 441.1 K shares traded <3 month average = 897.8 K shares>. BLUE is getting TOO rich for trader’s eyeballs as 11/1 started at $142.5, a $29.85 or 17.27% premium - the aftermarket indication is a NEGATIVE -$0.02 or -0.01% - BUY to SELL;
Capricor (CAPR) closed down -$0.17 to $1.88 after Wednesday’s +$0.13 to $2.05 with 4.39 M shares traded after Tuesday’s -$0.07 to $1.92 based on a filing that the FDA has cleared for its IND application to conduct a new clinical trial in boys and young men in advanced stages of Duchenne muscular dystrophy. CAPR still NEEDS to raise cash with its outstanding S-1 with HC Wainwrights – Maintaining SELL;
uniQure (QURE) closed up +$0.58 to $15.14 with 460.8 K shares traded <3 month average = 731.5 K shares>. Take notice of the week as Wednesday closed at $14.56, Tuesday at $14.75, Monday’s $14.94 and last Friday’s 15.81 – HOLD;
Verastem (VSTM) closed up +$0.55 to $4.21 with 2.1 M shares traded after Wednesday’s $3.66, Tuesday’s $3.55, Monday’s $3.61 and last Friday’s $3.65. I’m a day-tripper and would take some profit and though an aftermarket or pre-market indication is a positive +$0.04 or +0.95% – SELL;
I am staying put as the month ends as I have pneumonia, I feel like the sector – kicked all over!
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.
