December 18, 2017 5:02pm

Many of the oversold had their day made while a few overbought clung to some upside

Volume is low while volatility is haphazard

 

While Biostage (BSTG) closes down (-7.95%) and leads on weakness with questions of ethical concerns and their remaining management’s veracity

 

Pre-open indications: 6 hits 2 miss

 

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!

 

Henry’omics:

From the pre-open’s newsletter, “… hopefully the witch busted its broom.  Volatility and quadruple witching on Friday cleaned many clocks. Hopefully, we will be seeing a “Santa Clause” rally after a bad week. There are just too many “bottoms” to be tapped! The iShares Nasdaq Biotechnology (IBB) is indicating a POSITIVE +0.64% in Monday’s pre-market.”

Sector stocks closed with a high on Monday as investors eagerly awaited for the oversold to realize their past value proposition.

Fear of missing out is not a good reason to avoid harvesting tax losses at year-end.

This fear of missing out, or FOMO, stems from the so-called wash sale rule: In order to use a capital loss to offset a gain — and thereby reduce or eliminate the capital gains tax otherwise due — an investor must not get back into the same security for 30 days. If that security shoots up during that 30-day period, the investor who took the loss in that security will indeed miss out <M. Hulbert, MarketWatch>.

 

 

 Indications from the pre-open: 6 hits and 2 misses …

  • Athersys (ATHX) closed up +$0.12 – hit;
  • Juno Therapeutics (JUNO) down -$1.01 – miss;
  • Applied Genetic Technologies (AGTC) closed up $0.10 – hit;
  • Mesoblast (MESO) closed up +$0.84 – hit;
  • uniQure (QURE) closed down -$0.18 – miss;
  • Spark Therapeutics (ONCE) closed up +$2.68 – hit;
  • Biostage (BSTG) closed down - $0.0063 - hit;
  • Capricor (CAPR) closed down -$0.06 - hit;

 

The advance/decline line scenario of 40 SCGT & RT covered companies:   

·         The open was positive with an A/DL of 23/14 and 3 flat ;

·         The mid-day was positive with an A/DL of 20/17 and 3 flats;

·         The close was positive with an A/DL of 21/17 and 2 flat;

 

MY working trend lines:

… The greatest volume to the downside:  JUNO, BSTG, XON, MDXG and

… Upside volume was weighted to:  IMUC, ONVO, ATHX, ONCE and VSTM

… Biggest $ downside: JUNO (-$1.01), SGMO (-$0.55), AXGN (-$0.50), XON (-$0.32) and STML (-$0.30)

… Largest $ upside:  ONCE (+$2.38), BLUE (+$1.40), MESO (+$0.840, RGNX (+$0.70) and SLLS (+$0.61)

… Flat:  BCLI and RENE.L

 

 

Daily analytics:

U.S. stocks closed higher on Monday, with major indexes ending at records on growing confidence congressional Republicans will succeed in passing tax-cut legislation as early as this week.

·         The Dow rose 140.46 points, or 0.6%, to close at 24,792.20.

·         The S&P 500 gained 14.35 points, or 0.5%, to end at 2,690.16.

·         The NASDAQ rose 0.8%, or 58.18 points, to 6,994.76.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Monday traded at 9.53, up +1.17% …

  • Friday traded at 9.39, down -10.49% after Thursday traded at 10.49, up +3.05% after Wednesday traded at 10.18, up +2.62% after Tuesday traded at 9.92, up +6.21% and last Monday traded at 9.34, down -2.51% …

 

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

… The iShares Russell 2000 (IWM) indicated:

·         Monday was up +1.35%

·         Friday +1.41%

·         Thursday -1.10%

·         Wednesday +0.58%

·         Tuesday -0.31%

·         Last Monday -0.05%

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Monday was down -0.23%

·         Friday +1.36%

·         Thursday -1.45%

·         Wednesday +0.91%

·         Tuesday -0.44%

·         Last Monday +0.15%

 

The count - decliners versus gainers:

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

·         Monday’s decliners ranged from -1.04% <QURE -$0.18> to -7.95% <BSTG -$0.0063> in 17 equities;

·         Friday’s decliners ranged from -0.30% <NWBO -$0.0008> to -18.09% <IMUC -$0.079> in 19 equities;

·         Thursday’s decliners ranged from -0.30% <BLUE -$0.55> to -8.60% <FATE -$0.40> in 24 equities;

·         Wednesday’s decliners ranged from -0.69% <AGTC -$0.025> to -3.88% <CYTX -$0.0097> in 8 equities;

·         Tuesday’s decliners ranged from -0.91% <IMUC -$0.0021> to -5.38% <BLUE -$10.85> in 27 equities;

·         Last Monday’s decliners ranged from -0.56% <MESO -$0.03> to -34.97% <ONCE -$25.66> in 27 equities;

Versus

 

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

·         Monday’s gainers ranged from +0.64% <VSTM +$0.02> to +15.33% <MESO +$0.84> in 21 equities

·         Friday’s gainers ranged from +0.22% <BTX +$0.01> to +43.27% <BSTG +$0.024> in 19 equities

·         Thursday’s gainers ranged from +0.92% <QURE +$0.16> to +82.44% <IMUC +0.182> in 13 equities;

·         Wednesday’s gainers ranged from +0.26% <BCLI +$0.01> to +14.21% <CUR +$0.26> in 30 equities;

·         Tuesday’s gainers ranged from +0.76% <CYTX +$0.00> to +5.15% <MDXG +$0.60> in 11 equities;

·         Last Monday’s gainers ranged from +0.88% <CLLS +$0.22> to +17.91% <BLUE +$30.65> 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.