April 3, 2018 5:55pm
The sector’s move was a reaction to Monday’s selloff (31 of 40 covered)
Both the S&P and the NASDAQ fell into negative territory multiple times throughout the session, with the indexes being led largely by moves in technology and internet names.
The problem, volume is still low
Best idea, pre-open indications: 1 hit, Cellectis (CLLS) closed up +$7.80 or +25.38%
End of day briefing; the “numbers” speak!
Henry’omics:
From the pre-open’s newsletter, “cell therapy investment has been a heart breaker … Experiencing emotional selling and zero support, a far cry from the highs of 2015. From the ashes, can an oversold phoenix rise? For once, pray for algorithm recognition!”
Volatility is expected to remain elevated …
“This is still a sector trading on fear instead of fundamentals and technicals, which has made it frustratingly difficult to figure out where we’re headed in the near term.”
There’s been a sliver of positive news to help balance out the daily onslaught of fear-producing headlines … Cellectis (CLLS) and Allogene Therapeutics accelerate allogeneic off-the-shelf CAR T Therapies - https://www.regmedinvestors.com/articles/10215 especially since we are about to begin earnings seasons.
The advance/decline line scenario of 40 covered companies:
- The open was positive with the A/DL to 22/15 and 3 flat;
- 10:30 a.m. slipped negative with an A/DL of 17/17 and 2 flats;
- The mid-day stayed negative with an A/DL of 14/24 and 2 flat;
- 2:30 p.m. continued negative with an A/DL of 17/20 and 3 flats;
- The close concluded neutral with an A/DL of 19/19 and 2 flat;
As I had stated, “… stocks looked set to open higher on Tuesday, after suffering a rough start to the new month and quarter as stem, gene, cell therapy and regenerative medicine stocks struggled. Many of the sector’s “usual suspects” were below their 50-day moving average, a sign that short-term momentum may be trending to the downside!”
Company in my headlights: “MOST of the forty (40) covered companies are OVERSOLD in MY mind but, what matters is how the “algos” and traders perceive the entry points?”
- The upside and downside were split
- Volume is STILL low …
The day’s gain returned the S&P 500 above a closely watched technical indicator, and brought the NASDAQ back into positive territory for the year. However, the rise only erased about half of Monday’s decline.
Review the last 6 session’s close (of 40 covered companies):
- Tuesday closed POSITIVE with 19 decliners, 19 advancers and 2 flats;
- Monday closed negative with 31 decliners, 9 advancers and 0 flats;
- Friday was a market holiday
- Thursday closed POSITIVE with 16 decliners, and 22 advancers and 2 flats
- Wednesday closed NEGATIVE with 26 decliners, 13 advancers and 1 flat;
- Last Tuesday closed NEGATIVE with 35 decliners, 2 advancers and 3 flats;
Pre-open indications: 1 hit
Cellectis (CLLS) closed up +$7.80 or +25.38%
MY working five (5) trend lines:
… The greatest volume to the downside: IMUC, KOOL, BLUE, ADRO and ADVM
… Upside volume was weighted to: XON, SGMO, CLLS, MDXG and NWBO
… Biggest $ downside: RENE.L (-$4.50), BLUE (-$1.05), ONCE (-$0.66), ADRO (-$0.30) and BSTG (-$0.22)
… Best moves to the $ upside: CLLS (+$7.80), XON (+$1.07), BLFS (+$0.39), RGNX (+0.35) and QURE (+0.26)
… Flats: AXGN and CLBS
Daily analytics:
U.S. stocks closed higher Tuesday, following a volatile session that saw major indexes fluctuate widely as investors digested a sharp move lower in the previous session and gauged the likelihood of both trade risk and further weakness in technology names.
- The Dow rose 389.17 points, or 1.7%, to finish at 24,033.36.
- The S&P 500 rose 32.57 points, or 1.3%, to end at 2,614.45
- The NASDAQ added 71.16 points, or 1%, to close at 6,941.28.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Tuesday traded at 21.10, down -10.67% …
- Monday traded at 23.62, up +18.28%
- Friday was a market holiday
- Thursday traded at 19.97, down -12.68%
- Wednesday traded at 22.77, up +0.76%
- Last Tuesday traded at 22.50, up +6.99%
The iShares Russell 2000 (IWM) indicated:
- Tuesday was up +1.40%
- Monday -2.37%
- Friday was a market holiday
- Thursday +1.02%
- Wednesday -0.03%
- Last Tuesday -1.92%
The iShares NASDAQ Biotechnology (IBB) indicated:
- Tuesday was up +0.37%
- Monday -3.95%
- Friday was a market holiday
- Thursday +0.72%
- Wednesday +0.82%
- Last Tuesday -2.77%
The count - decliners versus gainers:
……. look at the differences in decliners:
- Tuesday’s decliners ranged from -0.11% < OSIR -0.01> to -7.28% <BSTG -$0.22 > in 19 equities;
- Monday’s decliners ranged from -0.74% <CAPR -$0.01 > to -5.42% < BLUE -$9.25> in 31 equities;
- Friday was a market holiday
- Thursday’s decliners ranged from -0.33% <VSTM -$0.01 > to -3.68% <SGMO -$0.73 > in 16 equities;
- Wednesday’s decliners ranged from -0.31% <FCSC -$0.0018 > to -8.30% <AXGN -$3.30 > in 26 equities;
- Last Tuesday’s decliners ranged from -1.01% <MESO -$0.06 > to -15.74% <SGMO -$3.55 > in 35 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Tuesday’s gainers ranged from +0.34% <STML +0.05 > to +25.38% < CLLS +$7.80> in 18 equities;
- Monday’s gainers ranged from +20.55% <BLFS +$1.05 > to +1.19% <CYTX +$0.0034> in 9 equities;
- Friday was a market holiday
- Thursday’s gainers ranged from +0.14% <AXGN +0.05> to +10.70% <BTX +$0.26> in 22 equities;
- Wednesday’s gainers ranged from +0.41% <BTX +$0.01> to +4.90% <MDXG +$0.33> in 13 equities;
- Last Tuesday’s gainers ranged from +0.36% <HSGX +$0.01 > to +0.66% <STML +$0.10 > in 2 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.
