August 7, 2017 5:23pm
Don’t chase the sector
There is nothing exciting me enough to buy …
Pricing will be on sale with all the Q2 reporting this week and next
Pre-open indications: 3 hit and 2 miss
It’s called premium content for a reason … I define insight from a real-time perspective discussing equity share pricing, attractiveness and support levels as stock pricing changes by the hour … if not the minute!
Others don’t even come close!
I answer one question, in which company should investors commit and keep their money.
Monday’s results have implications to Tuesday’s sector activity as a daily report may say little or a lot and it serves as insurance that all indications are being examined and evaluated!
From the pre-open’s investor’s newsletter, “… crunch week as thirteen (13) sector companies announce Q2 results … with eight (8) completing the “process”. We’ve already heard the minimal and dismal developments but, what did they spend to get them? Cash positions and “runways” will determine the outlook for a few quarters
- Reiterating, “Historically, the period from August through October has seen stocks struggle and a period when corrections have tended to occur more than often.”
Also, “It’s the alternating advance/decline lines, sputtering momentum and volume that worry … ME! Runways are what they will be – it’s pre-ordained for a few stumbles however, the path of resistance will be higher unless REAL clinical data appears for many of the “usual suspects”!”
- Also be ready for a number of offerings or private placements to suddenly appear …!
Trading volume was ... light as investors had little reason to make big bets with Q2 financial announcements aka earnings season ramping-up for three (3) to report - tomorrow.
There's also – I believe a lack of conviction either way. There's reason to be a seller yet and contrary to today's action - I don't see any reason to be a buyer or even a seller at these levels!
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The first hour was positive with an A/DL of 26/16 and 1 flat;
· The mid-day was positive with an A/DL of 26/14 and 3 flats;
· The close was positive with an A/DL of 22/17 and 4 flats;
Pre-open indications: 3 hit and 2 miss
- Athersys (ATHX) closed up +$0.09 – hit;
- AxoGen (AXGN) closed up +$0.00 – hit;
- BioLife Solutions (BLFS) closed down -$0.04 – hit;
- bluebird bio (BLUE) closed up +$3.60 – miss;
- Kite Pharma (KITE) closed up +$0.97 – miss;
U.S. stocks closed higher on Monday, with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine.
- The Dow rose 25.61 points, or 0.1%, to a new closing record of 22,118.42.
- The S&P 500 rose 4.08 points to 2,480.9, a rise of 0.2%. The NASDAQ climbed 32.21 points, or 0.5%, to 6,383.77. Monday marked the biggest one-day percentage rise for the NASDAQ since July 19.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
Traded at 9.93 … down -1%
- Friday traded at 10.03 – down -3.93% … after Thursday traded at 10.44, up +1.56% , Wednesday traded at 10.24, up +1.49%, Tuesday’s 10.09 down -1.66% and last Monday traded 10.30 up +0.10% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Monday was up +0.16%
· Friday was up +0.49%
· Thursday down -0.51%
· Wednesday was down -1.07%
· Tuesday was up +0.20%
· Last Monday down -0.31%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Monday was up +0.54%
· Friday was up +0.33%
· Thursday -0.79%
· Wednesday was up +0.40% which didn’t help the cell therapy sector
· Tuesday down -1.04%
· Last Monday down -0.85%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %’s migrate…
· Monday’s decliners ranged from -0.21% <CLLS> to -16.07% <NWBO> in 17 equities;
· Friday’s decliners ranged from -0.14% <MDXG> to -13.24% <CUR> in 15 equities;
· Thursday’s decliners ranged from -0.53% <HSGX> to -6.85% <CUR> in 18 equities;
· Wednesday’s decliners ranged from -0.15% <OSIR> to -9.63% <CYTX> in 28 equities;
· Tuesday’s decliners ranged from -0.14% <MESO> to -8.51% <CYTX> in 31 equities;
· Last Monday’s decliners ranged from -0.03% <IMUC> to -8.16% <FCSC> in 31 equities;
………… look at the percentage’s (%) and their decreases …….
· Monday’s gainers ranged from +0.12% <IMUC> to +30.43% <BSTG> in 22 equities;
· Friday’s gainers ranged from +0.14% <ONCE> to +13.43% <RENE.L> in 24 equities;
· Thursday’s gainers ranged from +0.30% <CLLS> to +10.91% <CAPR> in 20 equities;
· Wednesday’s gainers ranged from +0.64% <QURE> to +19.72% <ONCE> in 14 equities;
· Tuesday’s gainers ranged from +0.87% <BLFS> to +5.08% <FCSC> in 8 equities;
· Last Monday’s gainers ranged from +0.49% <VTGN> to +4.64% <AXGN> in 9 equities;
Some of MY working trend lines or indications:
… The greatest volume to the downside: NWBO, CYTX, XON, ONVO and CAPR
… Upside volume was weighted to: BSTG, ATHX, JUNO, MDXG and KITE
… Biggest $ downside: STML, KOOL, XON, FARE and OSIR
… Largest $ upside: BLUE, ONCE, KITE, MDXG and JUNO
… Flat: AGTC, ADRO, PSTI and AXGN
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.