August 8, 2017 5:20pm
As ETF and hedge fund exposure indicate an upswing in quickening exits
It’s the newest battle to contend with - the active versus passive investment trend
The ETFs, BOTS and algorithms are gaining a disruptive strength in ownership and holding’s percentages
Pre-open indications: 4 hit and 1 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.
Tuesday’s results have implications to Wednesday’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, "… turbulence coming … Many are saying Q2 earnings period has been a dud so far!"
- Referencing the title, “Investors have long been flocking to passive products, with Vanguard—a leader in both passive and low-fee funds—seeing the lion’s share of inflows. The move has been so dramatic that even outperforming active funds have seen outflows lately. <MarketWatch>
Active managers have shown improved results thus far this year, relative to the indexes they track, but over the long term, passive funds continue to absolutely dominate in performance.
- According to S&P Dow Jones Indices, nearly every type of active equity manager for mutual funds and institutional managed accounts underperformed their respective benchmarks over a 10-year time horizon, and results were particularly bad in some of the market segments that proponents of active management have long said were better suited to their strategy.
In an actively managed portfolio, the securities will be individually selected by a manager or team, in the hope of a higher return than a comparable index. That is in contrast to passive funds, where the securities mimic an underlying index.
So where does that leave the cell therapy sector … that is being “run” by algorithms, exposed by ETFs, managed by day traders and hedge funds … as mutual funds and retail brokers … CAN’T invest <in most cases> in an equity below $5.00!
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The first hour was negative with an A/DL of 13/26 and 4 flat;
· The mid-day was negative with an A/DL of 20/22 and 1 flat;
· The close was negative with an A/DL of 14/28 and 1 flat;
Pre-open indications: 4 hit and 1 miss
- Athersys (ATHX) closed down -$0.04 – hit;
- Biostage (BSTG) closed down -$0.0099 – hit;
- BioLife Solutions (BLFS) closed down -$0.05 – hit;
- bluebird bio (BLUE) closed down -$1.30 – hit;
- Kite Pharma (KITE) closed up +$6.58 – miss;
U.S. stock-market benchmarks ended in the red on Tuesday.
- The Dow slipped 0.2%. The S&P 500 index SPX closed off 0.2%, while the NASDAQ finished down 0.2% on the day.
The three major equity benchmarks dipped firmly lower, before coming off lows, in late-afternoon activity following President Trump's warning that North Korea would be met with "fire and fury" if the Hermit kingdom continues to provoke the U.S. with missile tests and acerbic rhetoric. "They will be met with fire and fury like the world has never seen," Trump said from his golf club in Bedminster, N.J.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, traded at 11.03, up +11.08% …
- Monday traded at 9.93 … down -1% after 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% and last Tuesday’s 10.09 down -1.66%
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Tuesday was down -0.31%
· Monday +0.16%
· Friday +0.49%
· Thursday -0.51%
· Wednesday -1.07%
· Last Tuesday +0.20%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Tuesday was down -0.94%
· Monday +0.54%
· Friday +0.33%
· Thursday -0.79%
· Wednesday +0.40% which didn’t help the cell therapy sector
· Last Tuesday -1.04%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %’s migrate…
· Tuesday’s decliners ranged from -0.46% <BCLI> to -11.11% <CUR> in 28 equities;
· 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;
· Last Tuesday’s decliners ranged from -0.14% <MESO> to -8.51% <CYTX> in 31 equities;
… Look at the percentage’s (%) and spreads …
· Tuesday’s gainers ranged from +0.19% <ONCE> to +5.79% <KITE> in 14 equities;
· 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;
· Last Tuesday’s gainers ranged from +0.87% <BLFS> to +5.08% <FCSC> in 8 equities;
Some of MY working trend lines or indications:
… The greatest volume to the downside: BSTG, NWBO, JUNO, ATHX and CUR
… Upside volume was weighted to: KITE, MDXG, ONCE, FATE and VSTM
… Biggest $ downside: XON, CLLS, STML, OSIR and BLCM
… Largest $ upside: QURE, ONCE, RGNX, RENE.L and KOOL
… Flat: SGMO
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.