March 8, 2018 6:29pm
After four (4) positive sessions, the fifth (5) slipped negative
So much for algorithms setting the guidelines as
... Sector moves have become “machine” oriented for gainers and decliners
As time series analysis does not incorporate sentiment and opinions
Companies in my pre-open headlights: Nine (9) … 6 HITS, 2 surprise and 1 question
I make a commitment to provide need-to-know “facts in evidence” of what’s happening in the stem, cell and gene therapy and regenerative medicine sector as equity volatility is one tactical signal for stocks.
Interpretation, insight and translation with an end-of-day recap of the sessions impact, settlement with an opinion of what could or should happen next thrown in.
Henry’omics:
From the pre-open’s newsletter, “…algorithm, algorithm set me a rule … Some investment firms think you’re so cool … The sequence of instructions can also end up being so cruel … You’re a tool and a fuel for a “machine learning” the recipe pool. As you alternate the spool to thread or unwind pricing accruals.”
It (the a.m. title) rhymed and was true as I saw a “bleed” of some value to those who have seen and felt the upside in the last four (4) sessions!”!
The downside price action comes on top of a number of other possible warning signs for sector equities, including stretched investor sentiment and the continuous spiral of loss-per-share results as Q4 and FY17 financial results unfold.
We are at 19 of 39 in my reporting … with one (1) net income for a quarter (VCEL +$300 K and +$0.01 per share for Q4) …
Valuations are on the high end, unwarranted and baseless by loss-per-share earnings growth. Be especially careful about investing in the sector’s “usual suspects” that have bigger downside risk especially if they are living on ATMs in lieu of financing.
The advance/decline line scenario of 40 covered companies:
- The open was negative with an A/DL of 15/24 and 1 flat ;
- 11 a.m. a.m. was negative with an A/DL of 17/18 and 5 flats;
- The mid-day continued negative the A/DL to 16/22 and 2 flats;
- The close was negative with an A/DL of 17/22 and flat;
Companies in my headlights: Nine (9) …
- Applied Genetic Technologies (AGTC) closed up +$0.10 – on what?
- bluebird bio (BLUE) closed up +$0.55 – are down sessions in its future – I believe so?
- Caladrius Biosciences (CLBS) closed down -$0.36 – right again (RA)
- Cellectis SA (CLLS) closed down -$0.10 – seen it coming and RA
- Fate Therapeutics (FATE) closed down -$0.62 – overbought and RA
- Regenxbio (RGNX) closed down -$1.20 – actually surprised, being mined for profit- wait for bounce-back
- Sangamo (SGMO) closed down -$0.30 – overbought and RA
- Vericel (VCEL) closed down -$0.50 – right again and RA
- uniQure (QURE) closed down -$0.48 – overbought and RA
MY working trend lines:
… The greatest volume to the downside: XON, SGMO, VCEL, RGNX and ADVM
… Upside volume was weighted to: CYTX, IMUC, VSTM, MDXG and ONVO
… Biggest $ downside: ONCE (-$1.78), AXGN (-$1.25), RGNX (-$1.20), FATE (-$0.62) and MESO (-0.60)
… Largest $ upside: STML (+$0.60), BLUE (+$0.55), ADRO (+$0.50), KOOL (+$0.15) and VSTM (+$0.13)
… Flat: RENE.L
Daily analytics:
The stock market closed higher and the Nasdaq extended its winning streak for a fifth session Thursday after President Donald Trump signed a proclamation to impose tariffs of 25% on imported steel and 10% on aluminum, but exempted Canada and Mexico while allowing other countries to negotiate exclusions.
- The Dow gained 93.85 points, or 0.4%, to end at 24,895.21.
- The S&P 500 index rose 12.17 points, or 0.5%, to close at 2,738.97.
- The NASDAQ added 31.30 points, or 0.4%, to finish at 7,427.95.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Thursday traded at 16.54, down -6,87% …
- Wednesday traded at 17.85, down -2.78%
- Tuesday traded at 18.36, down -1.98%
- Monday traded at 18.73, down -4.39%
- Friday traded at 19.59, down -12.82%
- Last Thursday traded 22.47, up +13.2%
The iShares Russell 2000 (IWM) indicated:
- Thursday was down -0.22%
- Wednesday +0.88%
- Tuesday +1.06%
- Monday +0.85%
- Friday +1.57%
- Last Thursday -0.31%
The iShares NASDAQ Biotechnology (IBB) indicated:
- Thursday was up +0.73%
- Wednesday +0.61%
- Tuesday +0.26%
- Monday +1.10%
- Friday +2.44%
- Last Thursday -0.96%
The count - decliners versus gainers:
……. look at the differences in decliners:
- Thursday’s decliners ranged from -0.12% <BLCM -$0.01> to -8.67% <VTGN -$0.13> in 22 equities;
- Wednesday’s decliners ranged from -2.41% <KOOL -$0.07> to -8.45% <IMUC -$0.03> in 9 equities;
- Tuesday’s decliners ranged from -0.13% <BLCM -$0.01> to -6.09% <MESO -$0.47> in 13 equities;
- Monday’s decliners ranged from -0.34% <RGNX -$0.10> to -3.17% <XON -$0.51> in 12 equities;
- Friday decliners ranged from -0.21% <CLBS -$0.01> to -3.77% <BSTG -$0.12> in 7 equities;
- Last Thursday’s decliners ranged from -0.02% <JUNO -$0.02> to -5.74% <CYTX -$0.0198> in 24 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Thursday’s gainers ranged from +0.24% <BLUE +$0.55> to +6.67% <ADRO +$0.50> in 17 equities;
- Wednesday’s gainers ranged from +0.59% <BCLI +$0.02> to +26.90% <RGNX +$7.95> in 29 equities;
- Tuesday’s gainers ranged from +0.16% <ONCE +$0.10> to +20.70% <IMUC +$0.06> in 22 equities;
- Monday’s gainers ranged from +0.08% <QURE +$0.02> to +41.92% <VCEL +$3.50> in 27 equities;
- Friday’s gainers ranged from +0.14% <JUNO +$0.12> to +24.73% <XON +$3.19> in 30 equities;
- Last Thursday’s gainers ranged from +0.28% <MDXG +$0.02> to +16.27% <AXGN +$4.75> in 14 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.
