December 1, 2017 6:35pm

Was it a bird, a plane, no it was a Flynn, a vote that hasn’t happened and an unsustainable upside

The 11:30 a.m. uncertainty “stigma” re-appeared putting the oversold back in the spotlight

 

Do I need to say it yet again, “I told you so” …

 

Pre-open indications: 5 hits and 0 miss

 

How right does one have to be? You could and should be reading this review of the day’s share pricing activity?

Is the truth so hard to fathom – that’s why my readership has grown exponentially!


 

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, “…new month starts with an ominous IBB -88.89% indication. The question is what will propel the month’s and year’s end pricing conundrum.  It’s just not about being oversold, breaching a moving average or ETF exposure but, what “factor” will truly create a BUYING opportunity that’s sustainable.”

Define the day in three words, “whipsawed by Washington …

Major indexes ended lower as the benchmark S&P 500 was down as much as 1.6% following the report that former national security adviser Michael Flynn was prepared to testify that before taking office President Donald Trump had directed him to make contact with Russians. Flynn pleaded guilty on Friday to lying to the FBI about contacts with Russia's ambassador.

But stocks recouped the bulk of their initial losses, after U.S. Senate Republicans said they had enough support to pass a sweeping tax overhaul.

The Dow saw a 2.9% weekly rise, its largest since December 2016. The S&P 500 saw a 1.5% weekly gain, the biggest since September. Both the Dow and the S&P have risen in 10 of the past 12 weeks. The NASDAQ fell 0.6% over the week, the biggest weekly decline for the index since Sept. 8.

But, that leaves the RegMed and cell therapy’s steep sell-off with an indication of unadulterated speculation due to their oversold status.

This brings me back to the issues of risk and the credibility of the sector in relation to transparency and guidance?

We've kind of gotten used to the drama in the sector but, what will cure the “believability” disease that is spreading through the retail and individual investor base!

 

 

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

·         The open was positive with an A/DL of 24/18 and 1 flat ;

·         11:30 a.m. flipped negative with an A/DL of 10/31 and 2 flats

·         The mid-day continued negative with an A/DL of 14/28 and 1 flat;

·         The early close was negative with an A/DL of 16/23 and 4 flats;

 

Pre-open indications: 5 hits and 1 miss

  • AxoGen (AXGN) closed down -$0.30 – hit;
  • bluebird bio (BLUE) closed down -$1.70 – hit;
  • Capricor (CAPR) closed down -$0.02 – hit;
  • uniQure (QURE) closed up +$0.42 – hit;
  • Verastem (VSTM) closed down -$0.07 – hit;

 

MY working trend lines or indications:

The greatest volume to the downside:  MDXG, XON, IMUC, VSTM and ONCE

Upside volume was weighted to:  RENE.L, SGMO, ONVO, NWBO and JUNO

Biggest $ downside: ONCCE (-$3.15), BLUE (-$1.70), CLLS (-$0.36), AXGN (-$0.30) and BLFS (-$0.27)

Largest $ upside:  JUNO (+$2.08), RGNX (+$0.80), QURE (+$0.42), SGMO (+$0.35) and STML (+$0.15)

Flat:  ADVM, KOOL, CLBS and CYTX

 

 

Daily analytics:

U.S. stocks ended lower on Friday. Trading was volatile, with major indexes mostly opening higher, though they fell sharply in the immediate aftermath of the Flynn news. However, all three indexes clawed back losses throughout the afternoon on optimism over expectations lawmakers would make additional progress on tax-cut legislation.

·         The Dow fell 40.76 points, or 0.2%, to 24,231.59, snapping a five-day streak of gains as the average fell about 300 points at its low of the session.

·         The S&P 500 fell 5.36 points, or 0.2%, to 2,642.22.

·         The NASDAQ declined 26.39 points, or 0.4%, to 6,847.59.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Friday traded at 11.43, up +1.33% …

  • Thursday traded at 11.28, up +5.42% after Wednesday traded at 10.70, up +6.68%, Tuesday traded at 10.03, up +1.62%, Monday traded at 9.87, down 00.10% and last Friday traded at 9.65, down -2.33% …

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Friday was down -0.66%

·         Thursday +0.18%

·         Wednesday +0.34%

·         Tuesday +1.57%

·         Monday -0.31%

·         Last Friday was up +0.04%

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Friday was up +0.42%

·         Thursday +1.44%

·         Wednesday -0.01%

·         Tuesday +0.28%

·         Monday -0.70%

·         Last Friday was up +0.04%

 

 

The count - decliners versus gainers:

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

·         Friday’s decliners ranged from -0.09% <MDXG -$0.01> to -6.16% <FCSC -$0.09> in 23 equities;

·         Thursday’s decliners ranged from -0.05% <ONCE -$0.04> to -11.80% <BSTG -$0.0080> in 11 equities;

·         Wednesday’s decliners ranged from -0.39% <AXGN -$0.10> to -12.33% <NWBO -$0.04> in 22 equities;

·         Tuesday’s decliners ranged from -0.19% <AXGN -$0.05> to -10.29% <KOOL -$0.36> in 23 equities;

·         Monday’s decliners ranged from -0.03% <BLUE -$0.05> to -11.18% <BSTG -$0.01> in 29 equities;

·         Last Friday’s decliners ranged from -0.31% <VTGN -$0.0027> to -0.17% <RGNX -$0.05> in 25 equities;

Versus

 

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

·         Friday’s gainers ranged from +0.51% <ATHX +$0.01> to +11.46% <BSTG +$0.01> in 16 equities;

·         Thursday’s gainers ranged from +0.26% <JUNO +$0.14> to +15.03% <VSTM +$0.55> in 28 equities;

·         Wednesday’s gainers ranged from +0.21% <BLCM +$0.02> to +13.74% <BSTG +$0.008> in 19 equities;

·         Tuesday’s gainers ranged from +0.20% <CLLS +$0.05> to +5.79% <MDXG +$0.63> in 15 equities;

·         Monday’s gainers ranged from +0.71% <FATE +$0.03> to +17.24% <FCSC +$0.25> in 11 equities;

·         Last Friday’s gainers ranged from +0.11% <ONCE +$0.08> to +8% <NWBO +$0.02> in 24 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.