April 5, 2017 5:24pm

 

Fear and reason are diametrically opposed as the sector closes grossly down versus its positive open

 

What’s the “noise” behind the movement – algorithms, ETFs and dark pools?

 

Value degradation is being accomplished by “an ETF basket and machine rules” enabled by company’s inattention to the foundations of share pricing …

 

Pre-open indications:  4 hits and 1 miss                                                                   

 

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

 

 

RMi’s daily and continual “reads” of the goings-on of the SCG&RT sector can improve investor’s and trader’s odds - just because a stock underperforms the market doesn’t mean you have to lose money.

 

 

Henry’omics:

From the pre-open’s investor’s letter title,” Take me out to the ballpark, cell therapy is playing. Let me root, root, root for the oversold and it’s one, two to three ups and it’s overbought. “

  • Reiterating, “What ever happened to investor letters or is it all about filing the 8-K and 10-Q to minimize the message and avoid direct investor’s questions and contain conflict?”

As I had stated, “It is about what investors feel or think about where their investment is headed.”

 

WHY does trading dominate “our” universe? 

  • News is the keys to momentum. That void is accentuated by the lack of retail investors as there seem to be NO believers, stayers or buying initiators which continually erodes share pricing.

The sector’s sentiment is also being decimated by news and buyer “desertion”!

  • Restless gains are converted into sells as any strength appears, providing the fuel for speculation.

There are just TOO many hedges built into “our” universe inhibiting ANY movement from negative sentiment.

 

SCG&RT companies NEED to refine their message – NOW companies MUST totally REORGANIZE and UPGRADE their outreach!

Companies who want to BEAT the “machines” have to constantly UPSET the RULES within the algorithms!

 

 

What analytics were there today and why it was important in today’s sector outcomes?

… The DOW closed down -41.09 or -0.20% to 20,648.15 while the NASDAQ closed down -34.13 or -0.58% to 5864.48 …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded near 11 following Tuesday’s 12 after Monday’s 12.3 … after Friday’s 12.3 following Thursday’s 11.6 post last Wednesday’s 11.4

…The iShares Russell 2000 (IWM) was up +0.07% at the pre-open was and closed DOWN -1.15%;

… The iShares NASDAQ Biotechnology (IBB) did NOT indicate at the pre-open and closed DOWN -1.37%.

 

 

The advance/decline line scenario of 43 SCGT & RT covered companies:   

·         The opening bell was positive with an A/DL of 26/12 and 5 flats;

·         The mid-day dived negative with an A/DL of 12/30 and 1 flat;

·         The close was negative with an A/DL of 8/31 and 4 flats;

 

 

… Decliners ranged from -0.42% <MDXG> to -9.41% <ATHX> in 31 equities;

… Gainers ranged from +0.26% <JUNO> to +5.62% <RENE.L> in 8 equities;

 

 

Pre-open indications: 4 hits and 1 miss

  • Applied Genetic Technologies (AGTC) closed flat at $0.00 – hit;
  • Athersys (ATHX) closed down -$0.16 – hit;
  • Brainstorm Cell Therapy (BCLI) closed up +$0.03 – miss;
  • Kite Pharma (KITE) closed down -$1.33 – hit;
  • Pluristem (PSTI closed down -$0.02 – hit;

 

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.