Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) pre-open: yesterday churned on low volume

February 21, 2018 7:59am

Sector intelligence and perspective

Sector was in a rut with damage to the downside and still could be for some

Sit and wait … for a melt-up of the oversold but, not all are due for a rise

Pre-open indications 5 BUYs and 3 SELLs

Lower and weak open expected

Dow futures are DOWN -0.17% (-42 points) and NASDAQ futures are UP +0.17% (+12 points)

U.S. stock index futures fell into the red ahead of Wednesday's open, extending losses seen in the previous trading session.

European stocks trade lower

Asian stock indexes closed higher

Issues to be faced at the open: Investor sentiment continues to be dampened

Data docket: mortgage applications are due at 7 a.m. ET, followed by flash US composite purchasing managers' index (PMI) at 9:45 a.m. ET, and existing homes sales at 10 a.m. ET.

Central banking: the latest minutes release by the Federal Open Market Committee is due out at 2 p.m. ET, while Minneapolis Fed President Neel Kashkari and Philadelphia Fed Patrick Harker are scheduled to deliver separate speeches.

Been where, done what …

RegMed, stem and cell therapy sector’s record over 5 sessions (of 40 covered companies):

· Tuesday closed NEGATIVE with 26 decliners, 12 advancers and 2 flats;

· Monday the market was closed for President’s Day

· Friday closed POSITIVE with 17 decliners, 18 decliners and 5 flats;

· Thursday closed POSITIVE with 16 decliners, 20 advancers and 4 flats;

· Last Wednesday closed POSITIVE with 10 decliners, 27 advancers and 3 flat;

Henry’omics:

From last night’s newsletter, “…sector weakens as the sell-off intensified with low volume and technical resistance. I also noticed the sector’s breadth deterioration in review of advance/decline lines of 40 covered companies; my working trend lines; daily analytics and the % count of decliners versus gainers

The sector has everyone guessing and wondering how much more downside we will see after five (5) upside sessions before a holiday, I think we may be setting up for some minimal upside with another drop to this week.

Due to the lack of impulsive patterns and complacent sentiment evident from Tuesday’s lows in many of the charts I am following, it would suggest the stock market is likely going to see a retest of the prior lows, or the exact opposite – some upside for a few of the oversold.

Today’s indications:

The iShares Nasdaq Biotechnology (IBB) is NOT indicating in Wednesday’s pre-market;
The SPDR S&P Biotech ETF (XBI) is NOT indicating in Wednesday’s pre-market;
The Health Care Select Sector SPDR ETF (XLV) is indicating a NEGATIVE -0.02% downside in Wednesday’s pre-open;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.07% upside in Wednesday’s pre-open

Companies in my headlights:

AxoGen (AXGN) closed up +$0.35 to $27.75 with 267.2 K shares traded <3 month average = 300.9 K shares>. MDXG spill over could affect others, the aftermarket indication is a negative -$0.35 or -1.26% - SELL;

bluebird bio (BLUE) closed down -$7.90 to $205.45 with low volume of 593.1 K shares traded <3 month average = 964.2 K shares>. The aftermarket indication is to the upside +$1.25 or +0.61% - BUY;

Bellicum Pharmaceuticals (BLCM) closed up +$0.31 to $6.91 with 2.38 M shares traded <3 month average = shares>. There’s is a premium of $1.29 or +18.6% over six (6) sessions, strength and volume is to be sold into in this market – SELL;

Fate Therapeutics (FATE) closed up +$0.41 to $9.17 with 986.3 K shares traded <3 month average = shares>. Six (6) sessions, there is a $1.37 or +14.9% premium in the shares and traders are greedy for upside and strength – SELL;

Regenxbio (RGNX) closed down -$0.40 to $26.45 with 222.8 k shares traded <3 month average = 370.2 K shares>. The aftermarket indication of this oversold is +$0.40 or +1.51% - BUY;

Sangamo therapeutics (SGMO) closed down -$1.05 to $22.25 with 1.48 M shares traded <3 month = 1.55M shares>. Oversold, the aftermarket indication is positive +$0.70 or +3.15%. In six (6) sessions the value has dropped -$0.45 or -2.8% - BUY;

Spark therapeutics (ONCE) closed down -$4.27 to $50.23 with 1.44 M shares traded <3 month average = 1 M shares>. Oversold with an aftermarket indication of +$0.77 or +1.53% - BUY;

Stemline Therapeutics (STML) closed down -$0.10 to $15.80 with 218.4 K shares traded <3 month average = 274.9 K shares>. Oversold with an aftermarket indication of +$0.10 or +0.63% - 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.