September 17, 2018 8:03am
What will illuminate equity’s value if momentum is light?
A trade wars materialize over markets …
Pre-open indications: 3 trades
Out and about: Mesoblast Limited (ASX: MSB and MESO), Tasly Pharmaceutical Group has successfully obtained all necessary approvals, including the Safe Administration of Foreign Exchange, required for closing the investment agreement and the development and collaboration agreement with MESO to commercialize cell therapies for cardiovascular diseases in China.
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 look to a sluggish open
Dow futures are DOWN -0.06% (-15 points) and NASDAQ futures are DOWN -0.23% ( -18 points)
U.S. stock index futures dive ahead of Monday's open, as investors kept abreast of a trade spat between two major economies.
Asian markets were relatively mixed, while European markets were under slight pressure.
Data docket: the Empire State Manufacturing survey is due out at 8:30 a.m. ET.
Today’s indications:
- The iShares Nasdaq Biotechnology (IBB) is indicating a +0.23% DOWNSIDE in Monday’s pre-market;
- The SPDR S&P Biotech ETF (XBI) is indicating a +0.02 % UPSIDE in Monday’s pre-market;
- The Health Care Select Sector SPDR ETF (XLV) is indicatingin a -0.31% DOWNSIDE in Monday’s pre-open;
- The iShares Russell 2000 (IWM) is indicating a -0.15% DOWNSIDE in Monday’s pre-open
Henry’omics:
As a new week kicks into action, political concerns from recent sessions continue to rattle investor sentiment. Markets remain jittery on Monday following media reports, that President Donald Trump is looking to announce new tariffs on around $200 billion worth of Chinese imports as soon as Monday <CNBC>.
The Wall Street Journal said this morning: China may balk at fresh trade talks if the Trump administration goes ahead with plans to roll out tariffs on $200 billion of Chinese products early this week. “China isn’t going to negotiate with a gun pointed to its head.”
As the month of September ... grinds … and to an end along with the quarter – Q3; are we warned that the same grinding effect will be perpetrated on sector equities?
September sessions:
Friday’s closed POSITIVE with 19 decliners, 23 advancer and 3 flats
Thursday’s closed NEGATIVE with 22 decliners, 20 advancer and 3 flats
Wednesday’s closed POSITIVE with 20 decliners, 25 advancer and 0 flats
Tuesday’s closed POSITIVE with 20 decliners, 23 advancer and 2 flats
Monday’s closed NEGATIVE with 28 decliners, 17 advancer and 2 flats
Friday’s closed POSITIVE with 15 decliners, 23 advancer and 7 flats
Thursday’s closed NEGATIVE with 39 decliners, 1 advancer and 5 flats
Wednesday’s closed NEGATIVE with 30 decliners, 12 advancers and 3 flats
Tuesday’s (9/4) closed NEGATIVE with 22 decliners, 19 advancers and 4 flats
I always want to know what happened PRIOR to what might happen today – it sets a tone of consequence:
From Friday’s night’s newsletter: “the sector blossoms after a lousy start as the markets dived along with the IBB (-0.51%).”
“Don’t not ignore last week’s choppiness.”
Remember, the count-down to the end of the month and Q3 is rapidly approaching – we are half-way there!
Of the 45 companies covered on Friday; 19 downside equities finished in a range of -0.05% (VYGR) to -9.23% (HSGX) while 23 upside equity oscillated from +0.03% (SAGE) to +10.33% (RGNX) with 3 flat closes (AST, AGTC and ADVM).
The iShares NASDAQ Biotechnology (IBB): history lesson
- Friday was down -0.51%
- Thursday was up +0.74%
- Wednesday was up +0.05%
- Tuesday was down -0.42%
- Last Monday closed up +0.17%
- For a five session aggregate of -.31% - the IBB is truly lagging, we need MORE upside movement!
In 9 sessions in September (so far) – there were 5 negative closes and 4 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:
CRISPR Therapeutics (CRSP) closed up again +$1.21 to $55.36 after Thursday’s +$0.43 to $54.15 in a day’s range $53.34 to $55.48 following Wednesday’s +$1.93 to $53.75 after Tuesday’s +$2.11 to $51.80 and last Monday’s $49.69; there’s $5.25 in three sessions and a premium of +9.5% - in this market I like to taste the frosting rather than eat the cake. Key metric – 52 week change = +183.95% – TRADE;
Editas Medicine (EDIT) closed up +$0.19 to $32.41 after Thursday’s -$0.27 to $32.22 in a day’s range of $31.68 to $32.93 after Wednesday’s +$0.25 to $32.49 after Tuesday’s +$1.17 to $32.24 and last Monday’s +$0.82 to $31.07. Key metric – 52 week change = +50.77% - TRADE;
Intellia Therapeutics (NTLA) closed up +$0.08 to $31.05 after Thursday’s +$0.70 to $30.97 in a day’s range of $30.01 to $31.40 post Wednesday’s +$1.14 to $30.27 after Tuesday’s +$2.15 to $29.13 and Monday’s $26.98. Key metric – 52 week change = +35.777% - TRADE;
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.
