The Russell 2000 Index (RUT) is holding closer to its January all-time highs, compared with the Dow 30, S&P 500 and Nasdaq 100 Indices, as shown on the following daily charts.
Its momentum indicator remains the strongest, of late, and is above the zero level, as are the others.
Biotech stocks we follow were big movers Tuesday, and here are four to watch for continued upside.
REGENXBIO Inc. (RGNX) exploded up 18%, or $5.95, to close at $37.40 on very heavy volume of 1.2 million shares traded Tuesday. That is more than three times its average volume. The move was a follow-through from Monday’s surge that came on news that business partner, AveXis (AVXS), also in the gene therapy space, is being acquired by Novartis. Next target is $40-41.
Tandem Diabetes Care, Inc. (TNDM) tore up 22%, or $1.29, closing at $7.01 on huge volume of 6.6 million shares traded. That is more than four times its average volume. The move came as the medical device company announced preliminary financial results indicating insulin pump shipments increased by 56 percent and sales by 42 percent in the first quarter of 2018 compared the first quarter of 2017. Having moved up with high velocity, the stock has appreciated a whopping 89% in value in the last three weeks. On March 23, Robert W. Baird upgraded the stock from neutral to outperform with a price target lifted from $3 to $7. Price is at the top of its channel, so expect a potential short-term pullback. Next target: $8.50. (more…)
Since January 2013 we have been using the worldwide Semiconductor Equipment industry as a leader within the Semiconductor sector, which is an economic cyclical leader itself. That month we noted a positive move in Equipment bookings, which became a (3 month) trend that spring. This trend was used to project positive economic signals to come.
Through some turbulence in 2014 and 2015 the sector has remained on ‘economic up’ along with our cross reference indicator, the Palladium/Gold ratio right up to the current time as the economic Canary in a Coal Mine has kept on chirping.
But on November 21, two days before the sector topped I derisively poked at the mainstream media for hyping the Semiconductor Equipment sector with its bold headline… Fund manager looks beyond ‘FAANG’ stocks and finds even bigger winners for 2018. Talk about eyeball harvesting and greed stimulation. (more…)
The canary chirped in 2013 as its equipment sector ramped up its bookings and we kept up with the bullish data every step of the way after that with updates like this one.
Semi Sector & Stock Market (2014)
The canary chirped again, as we noted amid much resistance if not outright contempt (this is when a supposed tech “expert” was held up in stern refutation of my stance, by a former subscriber whose trusted experts were then bullish gold and bearish Semi *).
AMAT Chirps, b2b Ramps, Yellen Hawks and Gold’s Fundamentals Erode (2016)
Then in November 2017 it was time to begin a new narrative as the MSM pumped a fund manager who, though bullish the FANGs, thought he’d found some great relative value for 2018 in the Semi sector. The link below clearly refutes that and gives reason to believe that these goofy troubadours in the MSM are going to lead a lot of new market participants to slaughter. (more…)