September 12, 2017 5:54pm

 

With the U.S. stock market hitting another record high Tuesday, the question remains why can’t the sector sustain?

It comes down to believability of development costs and progress versus G&A!

 

Pre-open indications: 3 hits and 3 miss

 

I saw it coming; the overbought are becoming the oversold – did you?

It’s called premium content for a reason: what is the value of reporting the truth in this sector?

 

If you had been right as many times as I have been in these many months of 2017 as a SUBSCRIBER you would know … when to get in and out or get back in again!

 

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!

 

 

Henry’omics:

From the pre-open’s investor’s newsletter “…achieving appreciation ain’t easy. Key technical indicators especially market breadth are keeping the sector fluid … As volume taints the upside and downside.”

  • As I had stated, “Yet, sector equities are at their highs since the first of the year … And exposure to ETFs is a little too high.”
  •  

Cell, stem and gene therapy companies moved to the downside as sentiment is NEVER sustainable! WHY – CEOs need to come clean about their development status, spending, future and results orientation ...

 

Feeling the gain was:  BLUE (+$1.00), AGTC (+$0.25), JUNO (+0.24), FCSC (+$0.16) and STML (+$0.15).

Dropping like a stone were: ONCE (-$0.73), SGMO (-$0.25), QURE (-$0.24) and CLLS (-$0.33).

Of the mid-tiers, VCEL (-$0.10), AST (-$0.10), BLCM (-$0.07) and BLFS (-$0.05) and PSTI (-$0.05 after yesterday’s +$0.11, a surprise after Q4 and FY17 results and $26.7 M in cash as of 6/17).

Getting slammed was: MESO, MDXG, VSTM, RGNX and KITE to name a few.

Getting dumped in the relationship with sentiment was:  a consistent dud – CAPR – look for a drop under $1.00, a NASDAQ threshold.

My customary target were up: BSTG (+$0.01)with serious terminal death legal issue hanging over its head while CYTX dropped -$0.0024 – who is restructuring and looking for a future … their CEOs is the problem and their tactical execution.

Under estimated company is again: HSGX was up again +$0.08 to $2.03 with 192.8 K shares traded <3 month average =60.5 K shares>after Monday’s +$0.03 after Friday’s +$0.03 following a close of +$0.08 after the previous days -$0.05 with a P3 milestone.

 

Volume is erratic weighted to upside cases

I wasn’t surprised as ETF exposure contributes to the continued downside confusing many an investors!

There is still the issue of resistance …

 

 

Pre-open indications: 3 hits and 3 miss:

  • Athersys (ATHX) closed down -$0.04 – hit;
  • Bellicum Pharmaceuticals (BLCM) closed down -$0.07 – miss;
  • bluebird bio (BLUE) closed up +$1.00 – miss;
  • Cellectis SA (CLLS) closed down -$0.33 – hit;
  • Fibrocell Science (FCSC) closed up +$0.16 – miss;
  • Verastem (VSTM) closed down -$0.17 – hit;

 

 

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

·         The first hour was negative with an A/DL of 17/22 and 4 flat;

·         The mid-day was negative with an A/DL of 16/25 and 1 flat;

·         The close was negative with an A/DL of 14/27 and 1 flat ;

 

 

Daily analytics:

U.S. stock indexes on Tuesday traded modestly higher. The S&P 500 set a fresh all-time, intraday high, marked by resurgence in buying on Wall Street, though some of that enthusiasm has cooled in afternoon trade.

·         The Dow rose 61.49 points or 0.28% to 22,118.56.

·         The S&P 500 added 8.37 points, or 0.34%, to 2,496.48, notching a new intraday day high.

·         The NASDAQ was slightly higher, up 0.34%, at 6,442.

 

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Tuesday traded at 10.58, down -1.40%

  • Monday traded at 10.73, down -11.47% after Friday traded at 12.12, up +4.94% after Thursday traded 11.88, down -0.69% after Wednesday traded at 11.63, down -4.91% and last Tuesday traded at 12.23, up +20.73

 

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Tuesday was +0.61%

·         Monday +1.03%

·         Friday +0.07%

·         Thursday -0.25%

·         Wednesday +0.20%

·         Last Tuesday -0.95%

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Tuesday was +0.22%

·         Monday+0.09%

·         Friday -0.34%

·         Thursday +0.27%

·         Wednesday +0.39%

·         Last Tuesday -0.83%

 

 

The count - decliners versus gainers:

……. look at the differences in the spreads as decliners jump and %

·         Tuesday’s decliners ranged from -0.06% <KITE -$0.11> to -3.91% <PSTI -$0.05> in 27 equities;

·         Monday’s decliners ranged from -0.19% <RGNX -$0.05> to -4.29% <ADRO -$0.50> in 20 equities;

·         Friday’s decliners ranged from -0.15% <KITE -$0.27> to -8.19% <MDXG -$1.27> in 16 equities;

·         Thursday’s decliners ranged from -0.21% <BLFS -$0.01> to -6.82% <VTGN -$0.12> in 11 equities;

·         Wednesday’s decliners ranged from -0.28% <AXGN -$0.05> to -7.71% <CYTX -$0.03> in 22  equities;

·         Last Tuesday’s decliners ranged from -0.04% <KITE -$0.07> to -20.26% <CLLS -$6.52> in 27  equities;

Versus

… Look at the percentage’s (%) and spreads …

·         Tuesday’s gainers ranged from +0.17% <OSIR +$0.01> to +5.32% <AGTC +$0.25> in 14 equities;

·         Monday’s gainers ranged from +0.14% <JUNO +$0.06> to +9.40% <PSTI +$0.11> in 23 equities;

·         Friday’s gainers ranged from +0.15% <XON +$0.03> to +15.63% <CYTX +$0.05> in 20 equities;

·         Thursday’s gainers ranged from +0.21% <KITE +$0.38> to +16.13% <FCSC +$0.40> in 28 equities;

·         Wednesday’s gainers ranged from +0.08% <KITE +$0.14> to +28.13% <VSTM +$1.08> in 18 equities;

·         Tuesday’s gainers ranged from +0.21% <CYTX +$0.01> to +19.95% <ISCO +$0.24> in 13 equities;

·         Last Monday was a holiday

 

 

Some of MY working trend lines or indications:

… The greatest volume to the downside:  KITE, MDXG, VSTM, ATHX and SGMO

… Upside volume was weighted to:  IMUC, JUNO, RENE.L, BLUE and BSTG

… Biggest $ downside:  ONCE, CLLS, SGMO, QURE and MESO

… Largest $ upside:  BLUE, AGTC, JUNO, FCSC and STML

… Flat:  ADVM

 

 

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.