June 19, 2017 6:16pm

 

A not unexpected response from a downside trend …

Upside was motivated by algorithms

 

As news was NOT an upside influence and fundamentals hadn’t changed … at all

 

Pre-open indications re-cap: as I had stated, the oversold would overcome

 

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

 

Monday’s results have implications to Tuesday's sector activity.  

 


 

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

 

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

·         The open was positive with an A/DL of 32/6 and 5 flats;

·         The mid-day was positive with an A/DL of 31/10 and 2 flat;

·         The close was positive with an A/DL of 35/7 and 1  flat;

 

 

Pre-open indications re-cap:  I aimed the arrow at the oversold and hit the bulls-eye

 

 

Henry’omics:

From the pre-open’s investor’s newsletter … “the oversold have been saving for a rope-a-dope … In competitive situations, rope-a-dope is used to describe strategies in which the sector lets trading fatigue set-up an offensive reaction.”

  • Reiterating, “In five sessions, four hit the floor and one withstood the hits; time for a little dancing on the mat and we are still in the Q2 round - the bell will ring next week.”

Review “The Count”, the upside is defined by the changes in percentages and advance/decline lines as well as the spreads!

 

The REAL issue for the sector is the corporate health of many members of the sector:

·         The end of the quarter which clouds present share pricing;

·         Cash positions are about to come clear;

·         Access to capital market could be severely compromised;

·         Development seems stymied;

·         Uncertainty is still the “bye-word” of the sector;

I am a believer, yet the sector is NOT doing for itself what it should - communicate!

·         A lot of the “choices” of management teams constantly AMAZE me;

·         The diversity of CEO personalities who just evoke DISDAIN overwhelms me;

·         Investors love or hate them – their seems to be NO middle road;

·         Then there is the problem of CEOs who don’t just get it … the role is NOT just a BOD given role;

·         My biggest complaint lately, is how can some CEOs stay in position – as members of their own management team have and are actively campaigning or conspiring against them – while maintaining their roles;

·         BIGGEST issue – BODs are NOT doing their jobs in representing shareholders

Thank god for D&O insurance and residence in Florida for some!!

 

 

Daily analytics:

U.S. equities closed on Monday … with the DOW closing UP +0.68% (+144.71) as the NASDAQ closed UP +87.25% (+1.42) …

… The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded again near 10.24 … -1.35% following …

·         Friday traded near 10.4 following Thursday’s near 11, Wednesday ‘s near 10.6, Tuesday’s near 10.6 and last Monday traded 11.48 – up +7.29%, …

 

Welcome to another day of the sector’s roller coaster …

… The iShares Russell 2000 (IWM) indicated a close of:

·         Monday closed UP +0.74%

·         Friday -0.25%

·         Thursday -0.51%

·         Wednesday  -0.59%

·         Tuesday+0.51%,

·         Last Monday -0.16%,

… The iShares NASDAQ Biotechnology (IBB) indicated a close of:

·         Monday closed UP +2.41%

·         Friday -0.36%

·         Thursday -0.77%

·         Wednesday +0.56%

·         Tuesday +0.41%

·         Last Monday -0.30%,

 

 

The count - decliners versus gainers:

……. look at the differences in the spreads ……….

·         Monday’s decliners ranged from -0.47% <ADRO> to -8.33% <ISCO> in  7 equities;

·         Friday’s decliners ranged from -0.41% <NWBO> to -6.67% <CAPR> in  26 equities;

·         Thursday’s decliners ranged from -0.60% <HSGX> to -9.67% <CAPR> in  xx equities;

·         Wednesday’s decliners ranged from -0.09% <BSTG> to -16.83% <IMUC> in  19 equities;

·         Tuesday’s decliners ranged from -0.61% <BLCM> to -9.82% <IMUC> in  13 equities;

·         Last Friday’s decliners ranged from -0.39% <QURE> to -8.68% <MESO> in  29 equities;

Versus

………… look at the percentage’s (%) and their increases – a temporary high …….

·         Monday’s gainers ranged from +0.20%  <QURE> to +13.92% <FCSC> in 35 equities;

·         Friday’s gainers ranged from +0.14%  <KITE> to +8.11% <BLCM> in 14 equities;

·         Thursday’s gainers ranged from +0.19%  <CUR> to +4.69% <AST> in 10 equities;

·         Wednesday’s gainers ranged from +0.40%  <KITE> to +5.14% <FCSC> in 18 equities;

·         Tuesday’s gainers ranged from +0.26%  <CLLS> to +12.70% <AST> in 26 equities;

·         Last Monday’s gainers ranged from +0.13%  <ONCE> to +15.20% <FCSC> in 15 equities;

 

 

Some of MY working trend lines or indications for Monday:

… The greatest volume to the downside:  BSTG, ADRO, STML, BCLI and CLBS

… Upside volume was weighted to:  BLCM, MDXG, JUNO, SGMO and NWBO

… Biggest $ downside:  CLBS, OSIR, STML, ISCO and ADRO

… Largest $ upside: BLUE, ONCE, BLCM, KITE and JUNO               

… Flat: CLLS                       

 

 

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.