January 13, 2017 5:32pm

 

… A rotation from the oversold is evident even as we head into a holiday weekend

 

Another stretch of short-term momentum will drive the advancers to the overbought

… As the downside drip of pre quarterly results are about to start

 

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

 

Pre-open indication’s tally:  4 hits (AGTC, CUR, HSGX and OPXA) and 2 miss (JUNO and SGMO)

Out and about: MY idea of the 8 dogs of 2017…

 

Can you afford to miss the insider view … Click here for access and subscribe:  http://www.regmedinvestors.com/create-account      

 


 

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

 

 

Stocks closed mostly higher on Friday, boosted by strong quarterly earnings from U.S. banks, while investors also digested several pieces of economic data.

The NASDAQ closed UP +26.63 or +0.48% to 5,574.12 and the DOW closed DOWN -5.27 or -0.03% to 19,885.73.

 

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 28/12 and 3 flats;                      
  • The mid-day stayed positive with an A/DL of 31/8 and 4 flats;
  • The closing bell stayed positive with A/DL of 27/14 and 2 flats;

 

 

Henry’omics:

From this morning’s investor’s letter, “After a depressing Wednesday close of only 5 (of 43 covered) advancers and a rebounding Thursday; the sector jumped to 24 advancers (of 43 covered) on Thursday. The upside trades are, fundamentally, driven by the same factor: being oversold.”

  • Reiterating, “The next and increasingly problem for investors will be accessing the capital markets by many of the “needy” companies for financing. This sector is setting investors up for a confrontation as even fast and speculative money is as short as it has been in a long time and solid investors are skeptical in financing  many of the “needy”!”

If you’re wondering if it’s still safe to buy stem, cell, gene and regenerative therapy stocks, Q4/16 quarterly result pre-release usually exhibit a downward slide.

  • ​Thus the answer is ... NO ...

There is nothing more bullish than a daily high but; sustainability has to be a better mantra … NOT the weekly – two day up and two to three day down event.

  • The Relative Strength Index (RSI), a momentum indicator that tracks how the magnitude of recent price gains compare with the magnitude of declines has been dismal.

 

This divergence don’t always lead to long-term, near-term or even short-term price tops or bottoms, but they can, so I warn investors to wait until prices and technicals start telling the same story!

 

 

Indexes, the ebb and flow:

  • The iShares Russell 2000 (IWM) indicated a positive +0.07% in the pre- open and closed UP +0.72%.
  • The iShares NASDAQ Biotechnology (IBB) indicated a negative -0.42% in the pre-open and closed UP +0.39%

 

 

Pre-open indication’s tally:  4 hits (AGTC, CUR, HSGX and OPXA) and 2 miss (JUNO and SGMO)

  • Applied Genetic Technologies (AGTC) closed UP +$0.15 – hit;
  • Juno Therapeutics (JUNO) closed UP +$0.33 – miss;
  • Histogenics (HSGX) closed UP +$0.07 – hit;
  • Neuralstem (CUR) closed DOWN -$0.14 – hit;
  • Opexa (OPXA) closed DOWN -$0.189 – hit;
  • Sangamo Therapeutics (SGMO) closed UP +$0.45 – miss;

 

 

My pet peeve:

High-frequency trading accounted for 52% of January's daily trading volume of about 6.95 billion shares <TABB Group>.

·         During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.

 

 

MY idea of the 8 dogs of 2017:

·         BioLife Solutions (BLFS)

·         Brainstorm Cell Therapeutics (BCLI)

·         Capricor (CAPR)

·         Cytori (CYTX)

·         Fibrocell (FCSC)

·         International Stem Cell (ISCO)

·         Northwest Bio (NWBO) and

·         Opexa (OPXA)

 

 

Today’s 5 only $ gainers included:

  • Regenxbio (RGNX)+$0.75;
  • bluebird bio (BLUE) +$0.55 after Thursday’s +$1.15 after Wednesday’s -$3.20 after Tuesday’s -$0.55 after Monday’s+$0.60 after Friday’s +$0.70 after last Thursday’s -$0.15;
  • Sangamo (SGMO) +$0.45 after Thursday’s +$0.30 after Wednesday’s FLAT;
  • AxoGen (AXGN) +$0.45 after Thursday’s-$0.25 after Wednesday’s +$0.05;
  • Aduro Biotech (ADRO) +$0.40

 

Today’s 5 largest $ losers of the session were:

  • Intrexon (XON) -$0.49;
  • Stemline (STML) -$0.30;
  • Opexa (OPXA) -$0.189 after Thursday’s+$0.26;
  • Spark Therapeutics (ONCE) -$0.16 after Thursday’s +$1.18 after Wednesday’s -$5.99 after Tuesday’s -$0.39 after Monday’s +$4.00 after last Friday’s -$0.19;
  • Cellectis SA (CLLS) -$0.44 after Wednesday’s +$0.05 after Tuesday’s -$0.37;

 

Flat:

  • Osiris (OSIR) at $4.91;
  • ReNeuron (RENE.L) at $2.625;                                                   

 

 

The downside trend reflects a pricing trend range of:

  • Friday’s decliners ranged from -0.28% <ONCE> to -16.43% <OPXA> in 14 equities;
  • Thursday’s decliners ranged from -0.34% <QURE> to -8.93% <ISCO> in 24 equities;
  • Wednesday’s decliners ranged from -0.38% <CAPR> to -34.76% <IMUC> in 34 equities;
  • Tuesday’s decliners ranged from -0.28% <BTX> to -6.47% <CAPR> in 14 equities;
  • Monday’s decliners ranged from -0.04% <XON> to—4.81% <CUR> in 10 equities;
  • Last Friday’s decliners ranged from -0.12% <MDXG> to-4.82% <CLLS> in 23 equities;

 

The upside shows a pricing trend range of:

  • Friday’s gainers ranged from +0.22% <KITE> to +11.39% <SGMO> in 27 equities;
  • Thursday’s gainers ranged from +0.31% <JUNO> to +29.93% <OPXA> in 18 equities;
  • Wednesday’s gainers ranged from +0.26% <CLBS> to +4.07% <MBOT> in 5 equities;
  • Tuesday’s gainers ranged from +0.41% <OSIR> to +92.82% <IMUC> in 25 equities;
  • Monday’s gainers ranged from +0.21% <BLCM> to +15.71% <NWBO> in 29 equities;
  • Last Friday’s gainers ranged from +0.40% <BCLI> to +13.66% <STML> in 18 equities;

 

The week’s climax:

  • Friday’s 27 gainers followed Thursday’s 18, Wednesday’s 5, Tuesday’s 25, Monday’s 29 and last Friday’s 18  
  • Friday’s 14 decliners followed Thursday’s 24, Wednesday’s 34, Tuesday’s 14, Monday’s 10 and last Friday’s 23

 

 

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

·         Friday traded near 11.3;

·         Thursday traded near 12.3 – 9% higher;

·         Wednesday traded near 11.6;

·         Tuesday traded near 11.7;

·         Monday traded near 11.6;

·         Last Friday traded near 11.3;

 

                                                                                                                                                                               

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.