March 27, 2018 5:40pm

Sector’s low reflect its deepest depth which I haven’t seen in the longest time

While only Histogenics (HSGX +$0.01) and Stemline (STML +$0.15) were up with 3 flats of 40 covered

 

It’s definitely a told you post when I stated …” good or the lack of news (and any bad news) is dragging appreciation like walking a dog who doesn’t want to keep pace.”

The sector is a telling story of testing lows with downside volatility thriving

 

Let the numbers of the end-of-day settlement set the scenario of what could or should happen in Wednesday’s session.


 

Henry’omics:

From the pre-open’s newsletter, “…the story will be the upside of equity pricing as the issues are momentum, low volume, erratic volatility and moving averages … It’s not all about the lines on a chart and their effects. We have never left the site of the battle of the oversold versus the overbought; are the wounded being carried away and treated and are the stalwarts staying upright?”

The fall from grace; NASDAQ’s pre-open indexes all indicated a strong start to the sector while the session got its clock cleaned by selling repressing an already depreciated sector.

  • As the NASDAQ (-1.95%), IBB (-2.77%), XBI (-4.27%), XLV (-1.18%) and IWM (-1.92%) declined while only Histogenics (HSGX +$0.01) and Stemline (STML +$0.15) were up with 3 flats of 40 covered

Tuesday represented the biggest one-day percentage and dollar decline for the sector in a while. The day's losses were widespread, with thirty-six (36) decliners, 2 advancer (STML) and 3 flats (ADRO, BSTG and RENE.L) of the 40 covered.

  • Trading was pronounced to the downside; major indexes have dropped in four of the past five sessions, although the only positive day -- Monday -- was a normal session for the indexes in a two week period.  

Among the most notable decliners on Tuesday were Sangamo Therapeutics (SGMO --15.74%), Adverum (ADVM -12.84%), Fate Therapeutics (FATE -11.50%), Cesca Therapeutics (KOOL -10.31%) a recent downer -bluebird bio (BLUE -7.28%), Capricor Therapeutics (CAPR -5.21%), Spark Therapeutics (ONCE -3.14%) and Regenxbio (RGNX -4.58%)

  • On the upside, there was only one – Stemline Therapeutics (STML +0.36%) and Histogenics (HSGX +0.36%).

Volume is STILL low …

 

Review the last 6 session’s close (of 40 covered companies):

  • Tuesday closed NEGATIVE with 35 decliners, 2 advancers and 3 flats;
  • Monday closed POSITIVE with 17 decliners, 21 advancers and 2 flats;
  • Friday closed NEGATIVE with 28 decliners, 8 advancers and 4 flats;
  • Thursday closed NEGATIVE with 26 decliners, 11 advancers and 3 flats;
  • Wednesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
  • Last Tuesday closed NEGATIVE with 23 decliners, 14 advancers and 3 flats;

 

The advance/decline line scenario of 40 covered companies:   

  • The open was negative with the A/DL to 9/25 and 6 flat;
  • 10:30 a.m. slipped negative with an A/DL of 9/28 and 3 flat;
  • The mid-day stayed negative with an A/DL of 3/32 and 5 flat;
  • 2:30 p.m. continued downward with an A/DL of 1/37 and 3 flats;
  • The close concluded negative with an A/DL of 2/35 and 3 flat;

 

 

Pre-open indications:

As I stated, “Watch and wait … good or the lack of news (and any bad news) is dragging appreciation like walking a dog who doesn’t want to keep pace.”

 

MY working trend lines:

The greatest volume to the downside:  SGMO, NWBO, MDXG, BLUE and XON

Upside volume was weighted to:  STML and HSGX     

Biggest $ downside:  BLUE (-$13.75), SGMO (-$3.55), ONCE (-2.31), RGNX (-$1.40) and FATE (-1.33)

 

Daily analytics:

U.S. stocks closed sharply lower on Tuesday, ending a volatility session.

  • The Dow sank 344 points, or 1.4%, to 23,859.
  • The S&P 500 sank 46 points, or 1.7%, to 2,613.
  • The NASDAQ shed 212 points to 7,009, a decline of 2.9%.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,

  • Tuesday traded at 22.50, up +6.99% …
  • Monday traded at 21.03, down -15.44%
  • Friday traded at 24.87, up +6.56%
  • Thursday traded at 23.34, up +30.68%
  • Wednesday traded at 16.59, down -3.71%
  • Last Tuesday traded at 18.20, down -4.31%

 

The iShares Russell 2000 (IWM) indicated:

  • Tuesday was down -1.92%
  • Monday +2.18%
  • Friday -2.13%
  • Thursday -2.15%
  • Wednesday -0.49%
  • Last Tuesday -0.02%

 

The iShares NASDAQ Biotechnology (IBB) indicated:

  • Tuesday was down -2.77%
  • Monday +2.68%
  • Friday -2.63%
  • Thursday -2.30%
  • Wednesday -0.98%
  • Last Tuesday +0.05%

 

The count - decliners versus gainers:

……. look at the differences in decliners:

  • Tuesday’s decliners ranged from -1.01% <MESO -$0.06 > to -15.74% <SGMO -$3.55 > in 35 equities;
  • Monday’s decliners ranged from -0.03% < BLUE -$0.05> to -16.79% < KOOL -$0.45> in 17 equities;
  • Friday’s decliners ranged from -0.09% <QURE -$0.02> to -7.89% <AST -$0.15> in 28 equities;
  • Thursday’s decliners ranged from -0.58% <CUR -$0.01> to -6.67% <CAPR -$0.11> in 26 equities;
  • Wednesday’s decliners ranged from -0.33% <HSGX -$0.01> to -5.69% <CAPR -$0.09> in 19 equities;
  • Last Tuesday’s decliners ranged from -0.17% <CLBS -$0.01> to -6.80% <XON -$1.116> in 23 equities;

Versus

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

  • Tuesday’s gainers ranged from +0.36% <HSGX +$0.01 > to +0.66% <STML +$0.10 > in 2 equities;
  • Monday’s gainers ranged from +0.39% <ADVM +$0.03 > to +8.37% <MDXG +$0.56> in 21 equities;
  • Friday’s gainers ranged from +0.55% < RENE.L +$0.50> to +4.25% <BLUE +$7.70 > in 8 equities;
  • Thursday’s gainers ranged from +0.30% <QURE +$0.07> to +11.76% <AST +$0.20> in 11 equities;
  • Wednesday’s gainers ranged from +0.57% <IMUC +$0.002> to +5.42% <AGTC +$0.225> in 19 equities;
  • Last Tuesday’s gainers ranged from +0.53% <ATHX +$0.01> to +6.64% <QURE +$1.38> 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.