September 20, 2018 8:08am
Algorithms, ETFs and trading are part of the answer …
As record outflows empty some ETFs – the XBI and IBB
Pre-open indications: 3 BUYs with news, 10 overbought and 2 oversold
What is fair game as defined by legitimate equities to trade?
RMi provides a pre-market synopsis for the U.S. trading day.
U.S. stock index futures are strengthening
Dow futures are UP +0.33% (+87 points) and NASDAQ futures are UP +0.37% (+28 points)
U.S. stock index futures pushed out slight gains ahead of Thursday's open, building upon the strong session seen yesterday.
European stocks edge higher as trade concerns wane
Asia markets were mixed as investors reacted to heightened trade tensions in the ongoing spat between the U.S. and China.
Data docket: jobless claims and the Philadelphia Fed's Manufacturing Business Outlook Survey at 8:30 a.m. ET, followed by existing home sales and leading indicators at 10 a.m. ET.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Thursday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a +0.05% UPSIDE 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 +0.15% UPSIDE in Thursday’s pre-open
Henry’omics:
The moves in pre-market trade came after markets closed Wednesday's session on a strong note, with the Dow soaring more than 150 points.
In regard to the title; the $9.3 billion SPDR S&P Biotech ETF (NYSEARCA: XBI) saw investors cash out $365 million last week. Investors have also fled from the iShares Nasdaq Biotech ETF (NASDAQ: IBB).
The M&A-fueled growth many biotech investors hoped for hasn't materialized, as rising valuations in the sector, particularly among small- and mid-cap names, have deterred takeovers <SeekingAlpha>.
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:
From Wednesday’s night’s newsletter: “an erratic pricing open, moderated at the mid-day and closed to the upside, I’m sticking with the thesis: don’t chase momentum that ascends and dives on trading. Highs are not BUYs as sentiment will stumble.”
The iShares NASDAQ Biotechnology (IBB): history lesson
- Wednesday closed up +0.13%
- Tuesday closed up +1.12%
- Monday closed down -1.32%
- Friday was down -0.51%
- Last Thursday was up +0.74%
- For a five session aggregate of +0.02% -I’d trade carefully!
Of the 45 companies covered on Wednesday; 18 downside equities finished in a range of -0.83% (SLDB) to -18.52% (RENE.L) while 24 upside equity oscillated from +0.03% (NTLA) to +9.51% (FATE) with 3 flat closes (ATHX, ADVM and PSTI).
In 12 sessions in September (so far) – there were 6 negative closes and 6 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:
I sticking with the issue of reflex action and overbought – if NOT today but, by nest Monday:
Overbought:
NTLA, EDIT, BSTG, RARE, AXGN, CLBS, FATE, MDXG, VCEL and VSTM
Oversold:
Global Blood Therapeutics (GBT) an aftermarket indication of +$0.25 or +0.61%
SAGE (an aftermarket indication of +$0.74 or +0.51%
News:
Asterias Biotherapeutics (NYSEMKT: AST) closed up +$0.05 to $1.40. The FDA has accepted its request to meet to discuss proposed next steps for the OPC1 clinical development program. The Company’s Type B meeting request was made in accordance with the Regenerative Medicine Advanced Therapy (RMAT) designation under the 21st Century Cures Act – BUY;
Mesoblast (MESO) closed up +$0.31 to $6.44. Continued strong survival outcomes through Day 180 in children with steroid refractory acute Graft Versus Host Disease (aGVHD) treated with MESO’s P3 product candidate remestemcel-L, an allogeneic mesenchymal stem cell product candidate. MESO’s open-label P3 trial enrolled 55 children with steroid-refractory aGVHD (aged between six months and 17 years) at 32 sites across the United States, with the vast majority (89%) suffering from the most severe form of aGVHD (Grade C/D). This P3 trial successfully met its primary endpoint of Day 28 Overall Response (OR) to remestemcel-L treatment, with 69% of patients achieving this endpoint compared to the protocol-defined historical control rate of 45% (p=0.0003) – BUY;
Adverum Biotechnologies, Inc. (ADVM) closed up +$0.00 to $5.85. The FDA has granted ADVM Fast Track designation for ADVM-022. ADVM-022 is a novel gene therapy candidate for the treatment of wet age-related macular degeneration (wAMD) – BUY;
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.
