September 11, 2018 8:11am
There is a divergence between volume and pricing; is it a question of confidence or complacency?
The oversold need a pay-up!
Remember 9/11 – another anniversary
RMi provides a pre-market synopsis for the U.S. trading day.
I answer one question, in which company should investors put, keep and commit their money
U.S. stock index futures are dropping
Dow futures are DOWN -0.42% (-108 points) and NASDAQ futures are DOWN -0.26% (-20 points)
U.S. stock index futures fell ahead of Tuesday's open, as investors focused on ... too many issues related to trade, politics and our country's leadership
Asian markets in were mostly mixed, while European markets turn negative as trade concerns offset earlier gains
Data docket: investors will be paying close attention to the job openings and labor turnover survey (JOLTS), following last week's nonfarm payrolls. JOLTS are due out at 10 a.m. ET. Meantime, the NFIB Small Business Optimism Index is due at 6 a.m. ET, while wholesale inventories are expected at 10 a.m. ET.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a +0.04% UPSIDE in Tuesday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is NOT indicating in Tuesday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicating a -0.08% DOWNSIDE in Tuesday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a -0.12% DOWNSIDE in Tuesday’s pre-open
Henry’omics:
U.S. stock futures pointed to a softer start for Wall Street on Tuesday, as investors struggled to find fresh catalysts to drive the market higher, choosing instead to focus on simmering trade worries <MarketWatch>.
Investors around the globe continue to show signs of cautiousness and, I am NOT sure that “our” universe is a safe haven.
Investors are also up against some history as the month of September is historically the weakest of the year, with an average loss of 1.05% since 1896.
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:
From Monday’s night’s newsletter: “not the rebound I expected as today’s sector outcome is like peeling an onion. It’s a good metaphor which means exploring one session at a time what’s causing the downdraft and it’s more complicated than most can gleam … The question is, how many sessions does it take to realize appreciation of downtrodden value?”
The iShares NASDAQ Biotechnology (IBB): history lesson …
- Monday closed up +0.17%
- Friday closed down -0.57%
- Thursday closed down -1.78%
- Wednesday was down -0.30%
- Last Tuesday was down -0.97%
- For a five session aggregate of -3.45% -we need some upside movement!
Of the 45 companies covered on Monday; 28 downside equities finished in a range of -0.32% (RARE) to -12.89% (HSGX) while 17 upside equity oscillated from +0.67% (VSTM) to +9.60% (FIXX) with 2 flat closes (ADVM and RENE.L).
In 5 sessions in September (so far) – there were 4 negative closes and 1 positive close;
In 21 August sessions – 6 had negative and 15 positive closes
Companies in my headlights – It’s your decision; I provide the idea and context:
Wait to see which side (BUY or SELL) of the sector is shaking; although there are too many oversold and a few overbought! I’d be watching the watchers, getting a feel for the algorithms and be ready for a down session!
Ever allowing for volatility, the declines seem exaggerated …
Remember the old adage, ‘As long as the music is playing, you’ve got to get up and dance.” <Chuck Prince, former Citigroup head>.
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.
