October 13, 2017 6:30pm

The sector gets crushed with a whole lot of liquidation

... After an FDA approval for Spark Therapeutics (ONCE), you’d think there would be more of an upside reaction

 

As many sell-side analysts vied to boost higher price targets on the stock …

 

Pre-open indications: 4 hit and 2 miss

 

In the grip of rotating cycles and disparaging trends, what is the price of sector equities - knowledge and a subscription! 

 


 

The way forward cannot be found in the practices and spending of the past as the sector is operating and defined by its own contradictions.

Friday’s results have implications to Monday’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 newsletter, “the oversold are undervalued in more ways than one. There are two factors pushing sentiment lower – the lack of shareholder sensitivity and any comparison to abject failures such as Biostage (BSTG).”

Volume is still low but, weighted heaviest to the downside!

I STILL believe the oversold will be resuscitated and yet again become the overbought.

This has been a week of non-stop liquidation, for which reason?

 

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

·         The open was negative with an A/DL of 18/23 and 2 flats;

·         The mid-day was negative with an A/DL of 11/30 and 2 flats;

·         The close was negative with an A/DL of 9/32 and 2 flat;

 

Pre-open indications: 4 hit and 2 miss

  • Adverum (ADVM) closed down -$0.15 – miss;
  • Biostage (BSTG) closed down -$0.02 – hit;
  • bluebird bio (BLUE) closed up +$1.50 – hit;
  • BioTime (NYSEMKT: BTX) closed down -$0.07 – hit;
  • Capricor (CAPR) closed down -$0.18 – hit;
  • Spark Therapeutics (ONCE) closed down - $1.97 – miss;

 

 

Some of MY working trend lines or indications:

The greatest volume to the downside:  MDXG, SGMO, ONCE, BTX and BSTG

Upside volume was weighted to:  IMUC, ONVO, CUR, NWBO and AXGN

Biggest $ downside: ONCE (-$1.97), SGMO (-$0.95), STML (-$0.75), ADRO (-$0.50) and RGNX (-$0.50)

Largest $ upside:  BLUE (+$1.50), AXGN (+$0.55), CLBS (+$0.13), MESO (+$0.13) and ONVO (+$0.06)

Flat: BLFS and KITE

 

 

Daily analytics:

U.S. equity benchmarks finished the session and the week slightly higher on Friday, and the NASDAQ recorded an all-time high. For the week, gains were modest. The Dow recorded a weekly rise of 0.4%, while the S&P 500 saw a 0.2% increase. Both have risen for five straight weeks. The NASDAQ logged a 0.2% weekly advance, marking its third consecutively weekly win.

·         The Dow rose 30.71 points, or 0.1%, to end at 22,871.72, after notching an intraday all-time high at 22,905.33

·         The S&P 500 index advanced 2.24 points, or 0.1%, to close at 2,553.17, after hitting an intraday record at 2,557.65.

·         The NASDAQ climbed 14.29 points, or 0.2%, to 6,605.80.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Friday traded at 9.61, down -3.03% …

  • Thursday at 9.91, up +0.61% after Wednesday traded at 9.83, down -2.48%  after Tuesday traded at 10.08, down -2.42% after Monday traded at 10.33, up +7.05% and last Friday traded 9.65, up +5.01% …

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Friday was down -0.17%

·         Thursday -0.07%

·         Wednesday -0.09%

·         Tuesday+0.27%

·         Monday -0.41%

·         Last Friday -0.11%

 

… The Russell 2000 (RUT)

·         Friday lost -2,51 or -0.17%

·         Thursday lost -1.76 or -0.12%

·         Wednesday lost -1.08 or -0.07%

·         Tuesday was gained +4.44 or +0.30%

·         Monday lost -6.66 or -0.44%

·         Last Friday lost -1.87 points or -0.12%

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Friday was down -0.22%

·         Thursday -0.52%

·         Wednesday -0.21%

·         Tuesday +0.03%

·         Monday -0.29%

·         Last Friday -0.11%

 

 

The count - decliners versus gainers:

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

·         Friday’s decliners ranged from -0.08% <MDXG -$0.01> to -17.18% <BSTG -$0.02> in 32 equities;

·         Thursday’s decliners ranged from -0.54% <BLFS -$0.03> to -15.13% <CYTX -$0.084> in 23 equities;

·         Wednesday’s decliners ranged from -0.44% <JUNO -$0.19> to -9.84% <BSTG -$0.01> in 26 equities;

·         Tuesday’s decliners ranged from -0.42% <XON -$0.08> to -12.82% <ONVO -$0.25)> in 19 equities;

·         Monday’s decliners ranged from -0.22% <VSTM -$0.01> to -14.95% <CYTX -$0.0949> in 26 equities;

·         Last Friday’s decliners ranged from -0.05% <ONCE -$0.04> to -52.40% <BSTG -$0.119> in 28 equities;

Versus

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

·         Friday’s gainers ranged from +0.90% <NWBO +$0.0015> to +4% <ONVO +$0.06> in 9 equities;

·         Thursday’s gainers ranged from +0.19% <JUNO +$0.08> to +10.43% <HSGX +$0.22> in 16 equities;

·         Wednesday’s gainers ranged from +0.24% <MDXG +$0.03> to +15.24% <PSTI +$0.25> in 14 equities;

·         Tuesday’s gainers ranged from +0.11% <BLUE +$0.15> to +10.02% <MESO +$0.61> in 23 equities;

·         Monday’s gainers ranged from +0.16% <JUNO +$0.07> to +12.12% <RENE.L +$0.20> in 13 equities;

·         Last Friday’s gainers ranged from +0.36% <BTX +$0.01> to +29.55% <CYTX +$0.14> in 12 equities;

 

 

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.