May 30, 2018 8:59am

So, what’s different than any other algorithmic “rule” session?

A rebound, so that risk assets find their footing

 

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

 

Get set for a modest rise at the open


Dow futures are UP +0.45% (+123 points) and NASDAQ futures are UP +0.24% (+17 points)

 

U.S. stock index futures pointed to a higher open Wednesday morning, rebounding slightly after political turmoil in Italy sent markets tumbling in the previous session.

European stocks mixed amid political turmoil in Italy

Asian markets closed lower on Wednesday, tracking the overnight sell-off in global markets.

 

Data docket: ADP payrolls data are due at 8:15 a.m. ET while a second reading of first-quarter GDP will come out at 8.30 a.m. ET. Meanwhile, the Federal Reserve will release its Beige Book at 2:00 p.m. ET.

 

Today’s indications:

  • The iShares Nasdaq Biotechnology (IBB) is indicating a UPSIDE of +0.44% in Wednesday’s pre-market;
  • The SPDR S&P Biotech ETF (XBI) is indicating a UPSIDE of +0.49% in Wednesday’s pre-market;
  • The Health Care Select Sector SPDR ETF (XLV) is NOT indicating in Wednesday’s pre-open;
  • The iShares Russell 2000 (IWM) is indicating an UPSIDE of +0.46% in Wednesday’s pre-open

 

Henry’omics:

From Tuesday’s night’s newsletter: “weakness or a panic move as sector sells-off; don’t be surprised as there could be more … Too many have been waiting for a sector butt-kick! It’s not all about Italy; the VIX’s (+28.74%) implied volatility jumped to +16.98 as investors fled equity markets, the IBB (-0.45%) along with the XLV (-1%) and the XBI (-0.54%) dropped with less drama than the IWM (-0.12%).”

Reiterating, “Sentiment is so fickle!”

Wednesday’s moves:  Wait, the downside has shown its “butt”; will there be a response from the oversold?

 

We are all but done for the month of May and the old adage of “sell in May and go away” has weakened as measured by twenty (20) sessions with twelve (12) positive,  seven (7) negative closes and one (1) holiday;

  • In the last five  (5) sessions, the iShares NASDAQ Biotechnology (IBB) was up in three (3) session, down in one (1) after Tuesday’s -0.45%, with a holiday on Monday after Friday’s +0.22%, Thursday’s +0.08% and last Wednesday’s +0.15% ;
  • Tuesday’s decliners ranged from -0.22% < AXGN -$0.10> to -4.56% <BSTG -$0.13> in 27 equities;
  • Tuesday’s gainers ranged from +0.08% <ALNY +$0.08 > to +7.49% <SLDB +$1.42 > in 15 equities;

 

Last five (5) sessions:

  • Tuesday closed NEGATIVE with 27 decliners, 15 advancers and 3 flat;
  • Monday was a holiday
  • Friday closed NEGATIVE with 21 decliners, 18 advancers and 6 flat;
  • Thursday closed POSITIVE with 18 decliners, 23 advancers and 4 flats;
  • Last Wednesday closed POSITIVE with 16 decliners, 28 advancers and 1 flat;

 

Companies in my headlights:

BioTime (NYSEMKT: BTX) closed down -$0.01 again to $2.19 after Friday’s  -$0.01 to $2.20 on Tuesday’s news of a new grant for 2018 of up to 6.9 million Israeli New Shekels (approximately $1.9 million) from the Israel Innovation Authority (the “IIA”). The grant provides funding for the continued development of OpRegen®, and to date the IIA has provided annual grants totaling over $13 million – Maintaining BUY;

 

There are some oversold in the pack of the "usual suspects" and a few overboughts!

 

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.