October 10, 2017 7:49am

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Pre-open indications: 4 SELLs and 3 BUYs

 

Trades in sector equities are precursors of news, not the other way around!

 

Higher open expected

Dow futures are UP +0.15% (35 points) and NASDAQ futures are UP +0.17% (10 points)

 

 

U.S. stock index futures pointed to a slightly higher open Tuesday, as investors geared up for new comments set to come out of the U.S. central bank, while keeping an eye on political developments.

European markets were slightly lower as investors monitored the ongoing political uncertainty in the Catalonia region of Spain.

Asian markets closed higher as markets shrugged off the softer close on Wall Street.

 

Issues that will affect the trading day: Following the Bureau of Labor Statistics' latest nonfarm payrolls report—which revealed last Friday that the U.S. saw a loss of 33,000 jobs during September—investors will be paying close attention to what leading members of the U.S. central bank will say on Tuesday. In the morning, Minneapolis Fed President Neel Kashkari is set to speak at the Regional Economic Conditions conference in Minneapolis, Minnesota. Later on in the day, investors will turn their attention to Dallas Fed President Robert Kaplan, who will be in California, where he is expected to participate in a Stanford Institute for Economic Policy Research associates meeting.

Data docket: None

 

 

The cell therapy sector closed NEGATIVE on Monday, Friday and Thursday, POSITIVE on Wednesday and NEGATIVE last Tuesday.

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

·         Monday closed NEGATIVE with 26 decliners, 13 advancers and 4 flats;

·         Friday closed NEGATIVE with 28 decliners, 12 advancers and 3 flats’

·         Thursday closed NEGATIVE with 21 decliners, 20 advancers and 2 flats;

·         Wednesday closed POSITIVE with 18 decliners, 19 advancers and 6 flats;

·         Last Tuesday closed NEGATIVE with 23 decliners, 18 advancers and 2 flats;

 

 

Henry’omics:

From Monday night’s closing bell post, “Why is it that traders are mostly looking for the exit door, because companies never opened the front door and welcomed them for a reality status to wallet conversation? Quarterly calls and conversations need to be more than every third month … What ever happened to “Dear Investor” update letters?”

  • Volume was very low as the bond market was closed for Columbus Day. The NASDAQ composite fell 0.15% to end at 6.579.73, after hitting a record high earlier in the session. The index also snapped a nine-day winning streak.

I look at traders being back at their desks and looking at the overbought while eyeing the oversold after a thinly traded session!

When the market is directionless and the sector is moribund – it can go either way. After four (4) out of five (5) negative sessions while the preceding sessions closed …

·         Monday closed POSITIVE with 14 decliners, 26 advancers and 3 flats;

·         Friday closed POSITIVE with 14 decliners, 23 advancers and 6 flats;

·         Thursday closed POSITIVE with 14 decliners, 24 advancers and 5 flats;

·         Wednesday closed POSITIVE with 13 decliners, 30 advancers and 0 flats;

·         Tuesday closed NEGATIVE with 23 decliners, 17 advancers and 3 flats;

… That’s another four (4) positive closes with one (1) negative for a total of five (5) negative closes and five (5) positive closes out of ten (10).

So I’d make the bet that we could be looking at a positive close with some oversold feeling a bump and the overbought getting downsized.

Thus I could surmise an UP session as the iShares NASDAQ Biotechnology (IBB) indicated <in the past five (5) days and upside of +2.40% and a downside of 0.63% in six (6) sessions.

 

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 NOT indicating in Tuesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a POSITIVE +0.06%in Tuesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Tuesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.15% in Tuesday’s pre-open

 

 

Companies in my headlights:

Adverum (ADVM) closed flat at $3.55 with 69.3 K shares traded <3 month average = 213.9 K shares>. We’ve seen $3.45, five (5) times in seventeen (17) sessions while October started at $3.90 The pre-market indication is a negative -$0.05 or -1.41% - SELL;

Capricor (CAPR) closed down -$0.19 or -6.64% to $2.67 with 1.55 M shares traded. The pre-market indication is a negative -$0.06 or -2.1%.  I still think the HYPE is overplayed but, the numbers speak for themselves - Maintaining SELL;

Cytori Therapeutics (CYTX) closed down -$0.0949 to $0.53 with 3.72 M shares traded after Friday’s +$0.14 to $0.63 with 19.35 M shares traded <3 month average = 1.3 M shares>. For a failed development company to fly is <in my mind>  a pure speculation trade as CYTX is a day trader’s tool. The aftermarket indication is a positive +$0.0852 or +13.42% - SELL to BUY;

Cesca Therapeutics (KOOL) closed down -$0.25 or -5.52%  to $4.28 with  109.4 K shares traded after Friday’s +$0.10 to $4.53 with 119.8 K shares traded after Thursday’s +$0.02 to $4.43 with 159 k shares traded after Wednesday’s -$0.40 or -8.32% to $4.41 with 366.9 K shares traded after last Tuesday’s +$1.22 or +33.98% to $4.81 with 3.8 M shares traded <3 month average = 161.6 K shares> October started at $3.60, September at $3.43 with a low of $3.25 and it began at August at $3.67. The aftermarket indication is a negative -$0.21 or -4.91% – Maintaining SELL;

MiMedx (MDXG) closed down -$0.41 or -3.38% to $11.72 with 1.7 M shares traded <3 month average = 2.27M shares>. October started with a high of $12.79, September started at $16.53 with a high of $16.73 and a low of $11.82. MiMedx announce Q3 revenues of $84.6 M which exceeds guidance by more than 5%.  Oversold and the pre-market indication is a positive +0.07 or +0.58% - BUY

Spark Therapeutics (ONCE) closed down -$1.77 or –2.02% to $85.67 with 703.9 K shares traded <3 month average = 507.5 K shares>. Oversold and the pre-market indication is a positive +$0.56 or +0.64% - BUY

Sangamo Therapeutics (SGMO) closed down -$0.10 or -0.63% to $15.85 with 891 K shares traded after Friday’s -$0.70 or -4.20% to $15.95 with 1.68 m shares traded <3 month average volume = 1.65 M >. October started at $16.20, September at $14.25 and August at $8.45 while July was priced at $8.90.  Reflecting on my title, when you’re wobbling on a precipice it’s time to step back a pace or two. An aftermarket review indicated a negative indication of -$0.10 or -0.63% – Maintaining SELL;

 

 

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.