June 8, 2018 8:20am

Depending on which way algorithms “rule”

 

Or is it just cleaning the cupboards of share pricing risk?

 

Pre-open indications: I am staying out of the session until the waves settle down although …

 

If you were a subscriber, and had read Thursday’s closing “brief” you’d understand how today’s pre-open indications shed light on share pricing!

Get set for a lower open

Dow futures are DOWN -0.37% (-94 points) and NASDAQ futures are DOWN -0.74% (-54 points)

 

U.S. stock index futures plummeted before the open on Friday, weighed down by Thursday’s indexes dive  

European markets were lower ahead of G-7 summit

Asian stocks closed lower.

 

Data docket: the wholesale trade report will be published.

 

Henry’omics:

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a DOWNSIDE of -0.64% in Friday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a DOWNSIDE of -0.49% 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 DOWNSIDE -0.06% in Friday’s pre-open

 

From Thursday’s night’s newsletter: “another I told you so. All week I have been saying we were overbought, “I’m NERVOUS about all-time highs, low volume and cautious about sector share pricing … and then the NASDAQ dropped -1%.”

I also stated, “I believe that there will be plenty to knock the sector around –it’s confidence that will shake the tree into the June swoon! Fear will be an INFLUENCE in “our” universe!”

The prospect of a further selloff follows dismal sector trading on Thursday. The NASDAQ (-0.70%) closed with modest losses, as a slide in the advance/decline line (A/DL) put on the pressure.

Traders were waiting for the signal and they got it.

As of Thursday’s close, the Dow was heading for a 2.5% weekly advance, while the S&P was up 1.3% and the NASDAQ was 1.1% higher.

Last five (5) sessions:

  • Thursday closed NEGATIVE with 34 decliners, 9 advancers and 2 flats;
  • Wednesday closed POSITIVE with 17 decliners, 24 advancers and 4 flats;
  • Tuesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;
  • Monday closed POSITIVE with 18 decliners, 25 advancers and 2 flats;
  • Last Friday (June 1st) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;

Post Thursday’s session, the iShares NASDAQ Biotechnology (IBB) was down -0.69% after Wednesday’s  +1.25%, after Tuesday’s +0.03%, Monday’s -0.65% and last Friday’s +1.28%;

  • Thursday’s decliners ranged from -0.08% < BOLD -$0.03> to -23.39% < MDXG -$1.92> in 34 equities;
  • Thursday’s gainers ranged from +0.38% <FIXX +$0.08 > to +9.96% < MESO +$0.56> in 9 equities;

 

Friday’s moves:  The moves in pre-market trading come after U.S. markets finished Thursday's session on a mixed note. The sector isn’t looking rosy as a byproduct although a bounce back in some of the oversold might be in the cards!

 

Companies in my headlights – It’s your decision; I provide the idea and context:

 

I am staying out of the session until the waves settle down … although it just may be a day to cherry-pick for next week.

Fear is the bottom line for Friday!

                                                                                                                        

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.