May 26, 2016 5:06pm

 

Resistance levels prevented the sector from moving prices upward.

 

Keeping score, pre-open indications: 1 hit and 1 miss

 

Do you care what happened today, you should … because it has implications to Friday's sector activity?  

 

 

There are two things that everyone needs interpretation and translation of intelligence, not just news or information - we get too much!

  • To that end, I report a matrix of variables designed for investor’s consideration concerning the stem, cell and gene therapy and regenerative medicine portfolio to track and monitor its pricing metric;

 

 

U.S. stocks closed narrowly mixed Thursday, with investors looking ahead to U.S. GDP data and comments from Federal Reserve Chair Janet Yellen.

The NASDAQ closed UP +6.88 or +0.14% to 4,901.77 and the DOW closed DOWN -23.22 or -0.13% to 17,828.29.

 

 

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector – the advance/decline line scenario of our 43 covered companies.   

  • Opened negative with an A/DL of 11/29 and 3 flats;

 

  • The mid-day stayed negative  with an A/DL of 13/28 with 2 flat – the opposite of yesterday;

 

  • The closing bell was negative  with A/DL of 13/26 with 4 flats

 

 

Henry’omics:

Last night, I wrote in “RMi’s closing bell analysis … waiting for the falling knife” and it fell cutting to the core of the sector at the open, to the mid-day and the close!

  • Sector stocks opened negative, stayed negative at the mid-day and closed negative.

Stem, cell and gene therapy and regenerative medicine sector stocks traded in narrow ranges other than a few stocks headed to the downside!

  • The overbought “condition” was sustained for 4 days before giving way to today’s pullback!

Falling support and opposition resistance show price levels are having trouble moving beyond. Support acts as a sort of price floor for a stock, while resistance acts as a price ceiling.

  • I will be watching for the VIX to push HIGHER out of its trading range indicating increased downside volatility for sector equities.

 

 

A pre-open indication batting stats – 1 hit and 1 miss:

  • Juno Therapeutics (JUNO) closed UP +$1.24 – miss;
  • Opexa (OPXA) closed DOWN -$0.22 – hit;

 

 

Today’s Bottom Line:

While no indicator is a crystal ball for a stock's movement, support and resistance can provide an effective, profitable framework for estimating a stock's behavior.

 

 

Out and about:

Biostage (BSTG) closed UP +$0.04 or +2.76% to $1.49 on 149,586 shares traded…

  • Post last week’s $1.76 offering, the stock has not held up … dropping incrementally each day. Volume has been very strong to the downside but, seems to be abating today. Do we a slowing and a potential of an upswing? News is needed to continue any move!

 

Caladrius Biosciences (CLBS) closed DOWN -$0.01 to $0.56 …

  • On news of licensing cell therapy asset, again for NO money and cutting its manufacturing space to lower costs in a sublease. The writing is on the wall for CEO Mazzo, what has he done in his tenure other than lower the share price from $3.75 and lease his “old” employer <bankrupt> building space in polo land i.e. Basking Ridge, NJ. Someone should give him a horse to ride out of CLBS!

 

Capricor (CAPR) closed FLAT to $3.25 … after being down most of the day

  • I have been saying for months, this equity is a helium inflated balloon that is slowly deflating, be prepared for an offering in the next months.

 

Cesca Therapeutics (KOOL) continued its dive -$0.24 or -6.70% to $3.34 …

  • Encouraging results from one patient doesn’t make a sustainable  pricing

 

Cytori Therapeutics (CYTX) closed DOWN -$0.06 to $2.97 …

  • The Scleroderma trial advances with the 80th patient treated but, what of BARDA, units sold and the rights offering that seems to be going – where?
  • The final question, what happened to the Malaysian investment and the penetration in the Far East?

 

Northwest BIO (NWBO) closed DOWN -$0.05 to $0.79 …

  • What has happened to working on ways to make the body’s immune system more effective in fighting cancer?
  • They had two promising candidates for treating solid tumor cancers. A lot of former supporters have moved on from the controversies associated with Linda Powers. At this price, even the short sellers continue to take profit.
  • When and IF management finally provides some answers or any response, there may not be any investors willing to follow the company.

 

Spark Therapeutics (ONCE) closed DOWN -$0.39 to $54.58 …

  • I have been saying the run-up had weak legs … thus, I wasn’t grasping at straws.

 

 

Review my fear gauge or the CBOE Volatility Index (VIX):

  • Thursday traded near 13.8;
  • Wednesday traded near 13.8;
  • Tuesday traded below 15;
  • Monday traded below 16
  • Friday traded 15.5;
  • Last, Thursday traded 16.7;

 

 

Most active sector stocks + and -:

  • Verastem (VSTM) -8.97%;
  • Cesca Therapeutics (KOOL) -6.70%;
  • Opexa (OPXA) -6.69%;
  • Northwest Bio (NWBO) -5.41%;
  • ReNeuron (RENE.L) -5.41%;

Versus …

  • Neuralstem (CUR) +6.82%;
  • ImmunoCellular (NYSEMKT: IMUC) +6.22 %
  • Aduro Biotech (ADRO) +3.36%;
  • Juno Therapeutics (JUNO) +3.08%;
  • Biostage (BSTG) +2.07%;

 

 

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.