November 30, 2017 7:58am

The sector has a problem of securing and keeping investor attention

 

Lately they are sure as hell, not seeing it in equity pricing of risk versus any crumb of reward

 

Maybe today will be different … the oversold are ripe ... although I wouldn’t chase any equity!

 

Pre-open indications: 1 BUY and 1 SELL

 

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Higher open expected

Dow futures are UP +0.31% (+79 points) and NASDAQ futures are UP +0.29% (+19 points)

 

U.S. stock index futures pointed to a positive open Thursday, lifted by a strong performance from Wall Street in the previous session, as investors geared up for an all-important OPEC meeting.

 

Issues that will affect the trading day: the Senate Budget Committee having approved the Senate's tax plan, this brings the upper chamber closer to a floor vote,

Data docket: Jobless claims and personal income data are set to come out at 8:30 a.m. ET, followed by Chicago PMI data at 9:45 a.m. ET.

Issues on the political front:  OPEC ministers are meeting in Vienna, where the oil cartel is set to discuss whether it will extend production cuts to cover the whole of 2018

 

 

Henry’omics:

From Wednesday night’s closing bell post, “the clock is always ticking on pricing and drumming on cash positions. As Capricor (CAPR) sprouted (+$0.13) wings that were clipped (day’s range of $2.01 - $2.48) on trial initiation approval which also accentuates its need for a financing to pay for it … don’t wait for the slide – SELL!

 

The difference between selling pressure based on valuation concerns and sector rotation is that sector-rotation selling pressure often comes to an end much sooner, quite often the day it began, and sharp reversals can take place on an intraday basis.

  • It is still all about sentiment and then price followed be demand and supply versus the usual overbought and oversold!

 

Yesterday’s semi- aggressive selling caused the RegMed and cell therapy sector to undershoot a downside threshold, as other markets were holding their respective converted support lines, the argument suggests an UPSIDE for those oversold!

  • Just another emblematic move in the short-term oriented time horizon !

 

 

In the RegMed and cell therapy sector, Wednesday, Tuesday and Monday closed NEGATIVE, Friday closed POSITIVE and last Thursday was a holiday.

The cell therapy sector’s record over the last 5 sessions (of 43 covered companies):

·         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;

·         Friday closed POSITIVE with 15 decliners, 24 advancers and 4 flats;

·         Last Thursday was Thanksgiving, markets in U.S. were closed;;

 

 

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 POSITIVE +0.3% in Thursday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.06% 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 POSITIVE +0.28% in Thursday’s pre-open

 

 

Companies in my headlights:

bluebird bio (BLUE) closed up +$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>. The aftermarket indication is a POSITIVE +$1.80 or +1.08% - SELL to BUY;

Capricor (CAPR) closed up +$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 – BUY to 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.