April 10, 2018 5:14pm
The question is and will be the velocity of momentum and resistance
As strength keeps budding ...
Key word for the rest of the week: UNCERTAINTY is unpredictable, unreliable and associated with risk …
Pre-open indication results: 4 HITs and 1 MISS
End of day briefing; the “numbers” speak!
Henry’omics:
Today’s moves … “Sector stocks have been considerably more volatile this year than in 2017.” I expect the sector to be "bumpy" for sessions going forward … “as veteran trader Art Cashin says this year's market volatility is reminiscent of the 1987 stock market crash.” A telling remark!
The advance/decline line scenario of 40 covered companies:
- The open was positive with the A/DL to 31/8 and 1 flat;
- The mid-day stayed positive with an A/DL of 30/7 and 3 flat;
- The close concluded positive with an A/DL of 32/7 and 1 flat;
I am still of the mind, “The issue of a dramatic incline will beget upcoming woes as volume is low to the downside and high to the upside.”
From the pre-open’s newsletter, “… buckle up; fasten your share price as the battle for sustainability is a go as yesterday’s volatility foreshadows a slower pricing ride.”
As I had stated, “– Listen to the message of the markets as it opens; the sector is highly volatile and the yesterday’s upswing is on low to moderate volume. The question is … will traders trust an upside continuation or “take some money off the table” if Washington “matters> have a blow-back effect to the market.”
Measuring the sector and market:
The Russell 2000 index (RUT) of small capitalization stocks soared 2.1% in afternoon trade Tuesday, to put it on track to close above its 50-day moving average for the first time in three weeks.
- The 50-day moving average is viewed by many chart watchers as a short-term trend tracker.
The Russell 2000 was at 1,546.10, while the 50-day MA came in at about 1,540.53 (according to FactSet).
- The index was outperforming, which could be a bullish sign for the broader market's technical outlook, as the Dow was about 330 points below its 50-day MA and the S&P 500 was 1.5% below.
It’s all about sensitivity to overall sector liquidity and I HAVE questions …!
Review the last 6 session’s close (of 40 covered companies):
- Tuesday closed POSITIVE with 7 decliners, 32 advancers and 1 flats;
- Monday closed POSITIVE with 12 decliners, 23 advancers and 5 flats;
- 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;
- Last Tuesday closed POSITIVE with 19 decliners, 19 advancers and 2 flats;
Pre-open indications: 4 HITs and 1 MISS
- Biostage (BSTG) closed down -$0.01 – hit;
- Neuralstem (CUR) closed up +$0.23 – hit;
- Regenxbio (RGNX) closed up +$5.95 – miss;
- Cellectis (CLLS) closed up +$0.67 – hit;
- Sangamo Therapeutics (SGMO) closed up +$1.05 – hit;
MY working five (5) trend lines:
… The greatest volume to the downside: NWBO, IMUC, ADRO, BLFS and AST
… Upside volume was weighted to: CUR, VSTM, SGMO, MDXG, VCEL and XON
… Biggest $ downside: BLFS (-$0.39), ADRO (-$0.15), HSGX (-$0.12), AST (-$0.10) and BSTG (-$0.01)
… Best moves to the $ upside: RGNX (+$5.95), ONCE (+$5.59), BLUE (+$1.50), QURE (+$1.46) and VCEL (+$1.20)
… Flats: RENE.L
Daily analytics:
Stocks rallied on Tuesday after a sigh of relief after China's president said he would work to "open" the country's economy, easing trade war fears.
- The Dow closed 428.90 points higher at 24,408.
- The S&P 500 gained 1.8% to close at 2,656.87.
- The NASDAQ advanced 1.7% to 7,094.30.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market,
- Tuesday traded at 20.47, down -5.97% …
- Monday traded at 21.98, up +2.28%
- Friday traded at 21.49, up +13.46%
- Thursday traded at 18.24 , down -5.58%
- Wednesday traded at 20.06, down -4.93% …
- Last Tuesday traded at 21.10, down -10.67%
The iShares Russell 2000 (IWM) indicated:
- Tuesday was up +1.86%
- Monday +0.12%
- Friday -2%
- Thursday +0.81%
- Wednesday +1.27%
- Last Tuesday +1.40%
The iShares NASDAQ Biotechnology (IBB) indicated:
- Tuesday was up +2.75%
- Monday +1.82%
- Friday -3.01%
- Thursday -1.62%
- Wednesday +2.91%
- Last Tuesday +0.37%
The count - decliners versus gainers:
……. look at the differences in decliners:
- Tuesday’s decliners ranged from -0.38% <BSTG -$0.01 > to -6.67% < AST -$0.10> in 7 equities;
- Monday’s decliners ranged from -0.02% <FCSC -$0.00 > to -12.65% <KOOL -$0.21 > in 12 equities;
- 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;
- Last Tuesday’s decliners ranged from -0.11% < OSIR -0.01> to -7.28% <BSTG -$0.22 > in 19 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Tuesday’s gainers ranged from +0.62% <BCLI +$0.02 > to +18.92% <RGNX +$5.95> in 32 equities;
- Monday’s gainers ranged from +0.78% <BLCM +$0.05 > to +16.44% <QURE +$3.61 > in 23 equities;
- 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;
- Last Tuesday’s gainers ranged from +0.34% <STML +0.05 > to +25.38% < CLLS +$7.80> in 18 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.
