September 28, 2016 5:19pm

 

The market jumps, “our universe dumps as the iShares Nasdaq Biotechnology ETF (IBB) slipped -0.81% and expectation leaves us twiddling our thumbs

 

Pre-open indication’s tally:  5 hits <ATHX, BLUE, CLLS, KITE and STML> and 0 miss <>

 

I answer one question; in which company should investors put, keep and commit their money!

 

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

Subscribe or lose!

 

I say what others won't, so you can do what others can't!

 

 

There are two things that investors need - interpretation of news and translation of market metrics concerning the stem, cell, gene and regenerative therapy sector to substantiate share pricing.

 

 

U.S. stocks closed higher Wednesday as investors digested commentary from several key Fed officials while an OPEC meeting overseas concluded.

The NASDAQ closed UP +12.84 or +0.24% to 5,318.55 and the DOW closed UP +110.94 or +0.61% to 18,339.24.

 

 

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

  • The open was positive with an A/DL of 23/19 and 1 flat;
  • The mid-day slipped negative with an A/DL of 15/25 and 3 flat;
  • The closing bell  stayed negative with A/DL of 13/27 and 3 flat – the opposite of yesterday;

 

 

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector was positive at the opening bell, slipping negative at the mid-day with the sector closing negative.

I keep telling investors in the a.m. to check the indexes:  

  • The iShares Russell 2000 (IWM) indicated a positive +0.13% and was UP +0.74% at the close while the iShares Nasdaq Biotechnology (IBB) did NOT indicate this a.m. this a.m. and closed DOWN -0.81% at the close.
  • The IWM and IBB tell a story about today and tomorrow.

Reiterating, the stem, cell, gene and regenerative therapy sector (SCG&RT) is swinging wildly between volume and volatility.

  • It is time to refine our portfolios to reflect those companies who are LESS prone to sector volatility ills.

Share and pricing turnover is a factor, how many time does the volume trend in relation to its pricing or the reverse?

  • Technicals and fundamentals matter yet they seem over-ridden on multiple occasions. Relative strength is also not always a short-term indicator. For short-term overbought, we also must consider the day moving averages.

It’s still a multiple question exam that defines whether momentum indicated a favorable buy or whether equities are in the short-term - overbought.

  • The downside reflects a -0.23% to -7.93% deflection while the upside shows an upside trend of +0.34% to +5.10% - not a lot of distance for a day.
  • Volume remains to the LOW side except in ATHX upside and IMUC, BLUE, NWBO, KITE and JUNO’s downslide;
  • A favorite “spot” to be in these days is FLAT – BSTG, OPXA and RENE.L than a splat …

Bottom line, it is still about cash positions, advanced trials and credible CEOs – those who communicate and follow-through on governance although guidance seems to be at a minimum lately.

 

Call me cantankerous, contrarian or even a curmudgeon but at the least I get it right and investors make money!

 

 

Pre-open indication’s tally:  5 hit and 0 miss:

  • Athersys (ATHX) closed UP +$0.10 – hit;
  • bluebird bio (BLUE) closed DOWN -$3.86 – hit;
  • Cellectis SA (CLLS) closed UP +$0.35 – hit;
  • Kite Pharma (KITE) closed DOWN -$3.58 – hit;
  • Stemline (STML) closed DOWN -$0.36 – hit;

 

 

Today’s Bottom Line:

The advance/decline lines (A/DL) keep making the sector nervous by their movement

 

 

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

  • Wednesday traded near 12.4;
  • Tuesday traded near 13.2;
  • Monday traded near 14.3 -16.5% higher;
  • Friday traded near 12.2 – I still don’t see it in our universe;
  • Thursday traded 11.3, -16.46% lower – I don’t see it in the SCG&RT sector;
  • Last Wednesday traded near 13.9, -2.6% lower;

 

 

Decliners:

  • Northwest Bio (NWBO) -7.92%;
  • Juno Therapeutics (JUNO) 6.34% after Tuesday’s +12.72%;
  • Kite Pharma (KITE) -5.96% after Tuesday’s +9.20% post Monday’s +0.75%;
  • Fate therapeutics (FATE) -5.83% after Tuesday’s -4.40%;
  • bluebird bio (BLUE) -5.29%

 

Advancers:

  • Athersys (ATHX) +5.10%;
  • Vericel (VCEL) +4.61%;
  • Applied Genetic Technologies (AGTC) +4.34%;
  • Mesoblast (MESO) +1.64% after Tuesday’s -3.17%;
  • Caladrius Biosciences (CLBS) +3.43%

 

Flat:                                                                                                              

  • Biostage (BSTG) at $1.07;
  • Opexa (OPXA) at $3.18;
  • ReNeuron (RENE.L) at $2.625;

                                                                                                                               

 

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.