April 5, 2018 5:23pm
Just when you might have thought to get back in the sector
Algorithms and ETFs bit … after spawning an upside
As I had stated, “I am worried about a reversal in the upcoming sessions of those with strong gains from Wednesday’s robust finish and cell therapy shares may be on the verge of a rebound or is it an indicator of an upcoming slide?”
Pre-open indication results: 4 HITs and 3 MISS
End of day briefing; the “numbers” speak!
Henry’omics:
Today’s moves … extreme volatility has been a hallmark of sector equities. Today, Thursday was the first day of April when the benchmark index doesn’t close with a 1% move.
From the pre-open’s newsletter, “…The sector’s volatility is worth suffering through if there are gains that are sustainable; however, if after all the losses; profit taking is a motivation to recapture a portfolio’s value in short-term increments.”
Weeks and months (since the New Year) have accumulated a bigger pile of (sentiment) manure, as the lack of guidance continues to send shock waves to share pricing as risk is left undefined!
Credibility and believability drive trading, as “earnings” are about to begin again, share pricing’s anemic growth, and in some cases cash positions dictate (these factors are related and intertwined).
WHY is it that the same OLD story lines resonate and echo as management teams don’t changed their practices to conform to the new market paradigms as to trust and transparency which drive pricing sustainability?
The advance/decline line scenario of 40 covered companies:
- The open was negative with the A/DL to 12/24 and 4 flat;
- The mid-day stayed negative with an A/DL of 8/30 and 2 flat;
- The close concluded negative with an A/DL of 11/25 and 4 flat;
As I had also stated, “The sector’s volatility is worth suffering through if there are gains that are sustainable; however, if after all the losses; profit taking is a motivation to recapture a portfolio’s value in short-term increments.”
- The downside was formidable and volume is STILL low …
Volatility in the sector remains elevated … look at the rush downward …
Review the last 6 session’s close (of 40 covered companies):
- Thursday closed NEGATIVE with 25 decliners, 11 advancers and 4 flats;
- Wednesday closed POSITIVE with 11 decliners, 28 advancers and 1 flat;
- 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
- Last Thursday closed POSITIVE with 16 decliners, and 22 advancers and 2 flats
Pre-open indications: 4 HITs and 3 MISS
- Adverum Biotechnologies (ADVM) closed up +$0.05 – miss;
- bluebird bio (BLUE) closed down -$2.95 – hit;
- Cellectis (CLLS) closed down -$4.10 – hit;
- Vericel (VCEL) closed down -$0.10 – hit;
- uniQure (QURE) closed down -$0.62 – hit;
- Sangamo Therapeutics (SGMO) closed down -1.40 – miss;
- Stemline Therapeutics (STML) closed down -$0.35 – miss;
MY working five (5) trend lines:
… The greatest volume to the downside: CLLS, SGMO, MDXG, ONVO and VCEL
… Upside volume was weighted to: XON, VTGN, IMUC, VSTM and ATHX
… Biggest $ downside: CLLS (-$4.10), BLUE (-$2.95), RGNX (-$1.55), SGMO (-$1.40) and ONCE (-$1.292)
… Best moves to the $ upside: AXGN (+$1.05), XON (+$0.38), BCLI (+$0.20), MESO (+$0.15) and ADVM (+$0.05)
… Flats: AST, AGTC, RENE.L and KOOL
Daily analytics:
U.S. stocks closed higher on Thursday, with major indexes posting their first three-day rally in several weeks as investors dialed back fears that a trade spat between the U.S. and China will turn into a full-blown trade war.
- The Dow rose 241 points, or 1%, to 24,505.
- The S&P 500 index was up 18 points, or 0.7%, to 2,663.
- The NASDAQ added 34 points, or 0.5%, to 7,077.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Thursday traded at 18.24 , down -5.58%
- Wednesday traded at 20.06, down -4.93% …
- Tuesday traded at 21.10, down -10.67%
- Monday traded at 23.62, up +18.28%
- Friday was a market holiday
- Last Thursday traded at 19.97, down -12.68%
The iShares Russell 2000 (IWM) indicated:
- Thursday was up +0.81%
- Wednesday +1.27%
- Tuesday +1.40%
- Monday -2.37%
- Friday was a market holiday
- Last Thursday +1.02%
The iShares NASDAQ Biotechnology (IBB) indicated:
- Thursday was down -1.62%
- Wednesday +2.91%
- Tuesday +0.37%
- Monday -3.95%
- Friday was a market holiday
- Last Thursday +0.72%
The count - decliners versus gainers:
……. look at the differences in decliners:
- Thursday’s decliners ranged from -0.73% <CAPR -$0.01 > to -12.39% <CLLS -$4.10 > in 25 equities;
- Wednesday’s decliners ranged from -0.57% <MDXG -$0.04> to -14.09% < CLLS -$5.43> in 11 equities;
- 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
- Last Thursday’s decliners ranged from -0.33% <VSTM -$0.01 > to -3.68% <SGMO -$0.73 > in 16 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Thursday’s gainers ranged from +0.52% <ATHX +$0.01 > to +6.08% < BCLI +$0.20> in 11 equities;
- Wednesday’s gainers ranged from +0.46% <CYTX +$0.0013> to +15.54% <VCEL +$1.50 > in 28 equities;
- 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
- Last Thursday’s gainers ranged from +0.14% <AXGN +0.05> to +10.70% <BTX +$0.26> in 22 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.
