September 7, 2018 7:20am
The lack of pricing stability inhibits perception and sentiment’s sustainability
A bounce-back is needed
Pre-open indications: 5 BUYs and 0 SELLs
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 slipping
Dow futures are DOWN -0.14% (-36 points) and NASDAQ futures are DOWN -0.16% (-12 points)
U.S. stock index futures came under pressure ahead of Friday's open amid investors focusing on jobs report.
European markets mixed as trade concerns weigh on sentiment;
Asia markets mixed as US-China trade war remains in focus
Data docket: At 8:30 a.m. ET, all eyes will be on the latest batch of nonfarm payrolls data, which aims to shed some light on how the U.S. economy and its labor market has been performing during the last month. Investors will also be digesting the Quarterly Services Survey, set to come out at 10 a.m. ET.
The U.S. economy is expected to have contributed an additional 191,000 jobs in August, an uptick from July's figure of 157,000 jobs <Reuters>.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a -0.01% DOWNSIDE in Friday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is NOT indicating 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 -0.25% DOWNSIDE in Friday’s pre-open
Henry’omics:
Are we truly paying attention to the sector and market as distractions abound; ADP and jobs report, Canada and Chinese tariffs, trade wars and the latest – the anonymous leaker’s identity and its written outcry?
The topic of conversation has been upset even more after Nike’s new marketing campaign.
Sector equities are struggling; and to top it off … some market strategists see a 5% pullback ahead!
- The "window for a typical 3-5 % pullback is open," according to Deutsche Bank stock strategists;
- Citigroup strategists also are cautioning about a possible 5 percent pullback, and they note their own proprietary model shows that there's a 70 percent chance for lower stock prices a year from now;
- Deutsche strategists expect a rebound later in the year and would become positive on stocks again in October, after the usually weak month of September <CNBC>.
We are already pulled in too many directions!
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:
From Thursday’s night’s newsletter: “Humpty-Dumpty sat on a wall and had a great fall. All the trading horses and all the retail and institutional men won’t put Humpty together again – for a while.”
I also stated, “A bounce-back is coming.”
The iShares NASDAQ Biotechnology (IBB):
- Thursday closed down -1.78%
- Wednesday was down -0.30%
- Tuesday was down -0.97%
- Monday was a holiday
- Last Friday closed up +0.16%
- For a five session aggregate of -2.89% - could be in for a rebound!
Of the 45 companies covered on Thursday; 39 downside equities finished in a range of -0.20% (SAGE) to -10.46% (BLCM) while 1 upside equity oscillated from +1.97% (BCLI) with 5 flat closes (PSTI, RENE.L, MESO, ADRO and BSTG).
- In 3 sessions in September – 3 negative closes;
- 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:
bluebird bio (BLUE) closed down -$9.10 to $152.30 on moderate volume of 706.6 K shares traded <3 month average = 813 K shares>after Wednesday’s -$3.55 to $161.40 and has a positive upside aftermarket indication of +$0.69 or +0.46%. August 30 saw a price of $176.00 and a low of $150.00 in the same month – OVERSOLD – Maintaining BUY;
CRISPR Therapeutics (CRSP) closed down -$3.57 to $49.88 with an upside aftermarket indication of +$1.43 or +2.87%. It’s been a downside start to the month of September, following Wednesday’s $53.45 and Tuesday’s $55.50 and I have been a “detractor”. CRSP has a 53 week change of +179.84%, against my personal issues; CRSP could be about to be part of a “bounce-back” – SELL to BUY;
Intellia Therapeutics (NTLA) closed down -$2.99 to $27.07 after Wednesday’s -$0.68 to $30.06 and has an upside aftermarket indication of +$0.42 or +1.55%. NTLA has a 53 week change of +39.49%, against my personal issues; NTLA could be about to be part of a “bounce-back” – SELL to BUY;
Editas Medicine (EDIT) closed down -$1.99 to $30.01 after Wednesday’s -$0.80 to $32.00 and Tuesday’s -$0.03 to $32.80. EDIT in August was up +10.4% and has a 52 week change of +58.42% and a short ratio of 12.38% or 5.59 M shares of 42.54 M “floating” shares.– SELL to BUY;
Verastem Oncology (VSTM) closed down -$0.45 to $8.79 after Wednesday’s -$0.63 to $9.24. VSTM dosed the first patient in a multicenter P1/2 clinical trial at the Dana-Farber/Harvard Cancer Center of duvelisib in combination with venetoclax in patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL). OVERSOLD – Maintaining 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.
