April 6, 2018 6:08pm
… The sector was dead before it was buried under an avalanche of selling
As I had stated, “High turnover and downside momentum create exaggerated moves.”
With no news or impetus “our” universe is dependent on algorithms and ETFs inducing volatility and destroying what has been left of sentiment which was already decimated
… This brings investor to seriously question the sector’s capacity for sustainability
Pre-open indication results: 1 HIT and 3 MISS
End of day briefing; the “numbers” speak!
Henry’omics:
Today’s moves … U.S. stocks closed sharply lower on Friday, led by a selloff in industrials and financials, as investors continued to fret over an escalating China-U.S. trade fight.
Investors are even greater agonized over the sector’s capacity to depend and stand on its achievement letting derivatives dictate their capacity to create and sustain value!!
From the pre-open’s newsletter, “…churn and burn. Two huge economic events, trade situation and the release of U.S. March payroll data and a speech by Fed Chair Powell will cause more agita in the market, thus the sector. High turnover and downside momentum create exaggerated moves.”
It’s going to take a lot more than press release and faked bravado <as we head into Q1 “earnings” season or as I should say – LPS (loss-per-share) territory!
NOTICE, we don’t see any “Dear Shareholder” letters to allay the fears of investors – wonder WHY and WHAT are they (managements) hiding or from …?
Answer … their outsized and excessive pay packages!
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 7/32 and 1 flat;
As I had also stated, “The downside was formidable and volume is STILL low …
Volatility in the sector remains elevated …
Review the last 6 session’s close (of 40 covered companies):
- Friday closed NEGATIVE with 32 decliners, 7 advancers and 1 flats;
- 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;
- Last Friday was a market holiday
Pre-open indications: 1 HITs and 3 MISS
- Adverum Biotechnologies (ADVM) closed down -$0.35 – hit;
- Cellectis (CLLS) closed down -$0.17 – miss;
- Sangamo Therapeutics (SGMO) closed down -$0.55 – miss;
- Stemline Therapeutics (STML) closed down -$0.10 – miss;
MY working five (5) trend lines:
… The greatest volume to the downside: SGMO, MDXG, PSTI, XON and BLUE
… Upside volume was weighted to: VCEL, ONVO, BLFS, FCSC and MESO
… Biggest $ downside: BLUE (-$7.45), ONCE (-$1.19), RGNX (-$1.10), AXGN (-$0.70) and FATE (-$0.69)
… Best moves to the $ upside: BLFS (+$0.28), VCEL (+0.15), MESO (+$0.12), OSIR (+$0.05) and HSGX (+$0.02)
… Flats: RENE.L
Daily analytics:
The main indexes sold off in early trade following President Donald Trump’s proposal of fresh tariffs against China. The afternoon selling pressure followed Federal Reserve Chairman Jerome Powell’s speech in which he backed a “patient” approach to raising interest rates.
- The Dow fell 572.46 points, or 2.3%, to end at 23,932.76.
- The S&P 500 index dropped 58.37 points, or 2.2%, to finish at 2,604.47.
- The NASDAQ declined 161.44 points, or 2.3%, to close at 6,915.11.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Friday traded at 21.49, up +13.46%
- 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%
- Last Friday was a market holiday
The iShares Russell 2000 (IWM) indicated:
- Friday was down -2%
- Thursday +0.81%
- Wednesday +1.27%
- Tuesday +1.40%
- Monday -2.37%
- Last Friday was a market holiday
The iShares NASDAQ Biotechnology (IBB) indicated:
- Friday was down -3.01%
- Thursday -1.62%
- Wednesday +2.91%
- Tuesday +0.37%
- Monday -3.95%
- Last Friday was a market holiday
The count - decliners versus gainers:
……. look at the differences in decliners:
- Friday’s decliners ranged from -0.50% <IMUC -$0.0012 > to -9.68% <AST -$0.15 > in 32 equities;
- 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;
- Last Friday was a market holiday
Versus
… Look at the percentage’s (%) and spreads …
- Friday’s gainers ranged from +0.61% <OSIR +$0.05 > to +4.06% <BLFS +$0.08 > in 7 equities;
- 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;
- Last Friday was a market holiday
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.
