April 11, 2018 5:44pm

Slowing after the prior two session rally with today’s neutral sector showing

As the session’s braking is constrained by volume inhibiting advance/decline lines and relative strength

 

We’re observing the effects of risk-aversion from last Friday’s oversold “condition”

 

Pre-open indication results: 5 HITs

Out and about: Bellicum Pharmaceuticals (BLCM announced that the FDA has lifted the clinical hold on studies of BPX-501 in the U.S. The decision follows consultation with the FDA and agreement on amendments to the study protocols including guidance on monitoring and management of neurologic adverse events.

 

End of day briefing; the “numbers” speak!

Henry’omics:

Today’s moves … as I had stated, “keep trading size small and have options to move the horizon out to a longer time frame to help mitigate risk!

The title speaks to the theme and outcome of the session!

A number of traders and investors, I spoke with today -agree the path of least resistance for the sector’s equities is DOWN!

Two up sessions followed by two down topped with today’s neutral stance – could be a bubble indicator.

… which hasn’t stopped trigger-happy traders from ramping up their “short” option bets …

What's wagging the dog's tail ... the money that is made in “our” universe is NOT being near and long-term oriented but by being a short-termer! 

 

The advance/decline line scenario of 40 covered companies:   

  • The open was positive with the A/DL to 22/15 and 3 flat;
  • The mid-day stayed positive with an A/DL of 19/18 and 3 flat;
  • The close concluded neutral with an A/DL of 19/19 and 2 flat;

 

From the pre-open’s newsletter, “… value is at risk and the suddenness of the pick-up of volatility could result in distressing losses. The iShares Nasdaq Biotechnology (IBB) is indicating NEGATIVE -0.33% downside after Tuesday’s +2.82% following Monday’s +1.82%. Investors should hold off on BUY orders after Trump tells “Russia to get ready for missiles coming to Syria”

As I had stated, “Investors should hold off on BUY orders. Forewarned is forearmed!” Lately doing nothing is better than overreacting as today’s upside was weakening

Volatility does not seem to be slowing down in which ever direction …

 

Out and about: Bellicum Pharmaceuticals (BLCM) – continued …

BLCM will be working with U.S. clinical sites to resume patient recruitment based on the amended protocols. The FDA clinical hold did not affect the BP-004 registrational trial in Europe, which is fully enrolled.

BPX-501 is an adjunct T-cell therapy administered after allogeneic HSCT, comprising genetically modified donor T cells incorporating BLCM’s CaspaCIDe® safety switch. It is designed to provide a safety net to eliminate alloreactive BPX-501 T cells (via administration of activator agent rimiducid) should uncontrollable GvHD or other T-cell mediated transplant complications occur. This may enable physicians to more safely perform stem cell transplants by administering BPX-501 engineered T cells to speed immune reconstitution, provide control over viral infections, and enhance graft-versus-leukemic activity while minimizing GvHD side effects.

 

Review the 8 sessions of March’s closings (of 40 covered companies): notice the two (2) by twos (2)

  • Wednesday closed NEUTRAL with 19 decliners, 19 advancers and 2 flats;
  • 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;
  • The previous Monday closed NEGATIVE with 9 decliners, 31 advancers and 0 flats

 

Pre-open indications: 5 HITs

  • Biostage (BSTG) closed flat $0.00 – hit;
  • bluebird bio (BLUE) closed down -$0.40 – hit;
  • Neuralstem (CUR) closed down -$0.10 – hit;
  • Regenxbio (RGNX) closed down -$2.40 – hit;
  • Cellectis (CLLS) closed up +$0.47 – hit;

 

MY working five (5) trend lines:

… The greatest volume to the downside:  ADRO< ONVO, RGNX, NWBO and ADVM

… Upside volume was weighted to:  SGMO, VSTM, MDXG, XON and VCEL

… Biggest $ downside:  RGNX (-$2.40), BLUE (-$0.40), ADVM (-$0.30), ADRO (-$0.25) and CUR (-$0.10)

… Best moves to the $ upside:  QURE (+$1.98), FATE (+$1.39), XON (+$0.91), CLLS (+$0.47) and STML (+$0.35)

… Flats: BSTG and RENE.L

 

Daily analytics:

U.S. stocks closed lower on Wednesday as investors assessed rising geopolitical tensions. Major indexes had come under pressure in early trade after tweets from President Donald Trump suggested he was preparing for a military strike in Syria and underlined a tense relationship with Russia.

  • The Dow fell 218.55 points, or 0.9%, to 24,189.45.
  • The S&P 500 declined 14.68 points, or 0.6%, to 2,642.19.
  • The NASDAQ closed 25.27 points, or 0.4%, lower at 7,069.03.

 

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

  • Wednesday traded at 20.24, down -1.12% …
  • 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%
  • Last Wednesday traded at 20.06, down -4.93% …

 

The iShares Russell 2000 (IWM) indicated:

  • Wednesday was up +0.22%
  • Tuesday +1.86%
  • Monday +0.12%
  • Friday -2%
  • Thursday +0.81%
  • Last Wednesday +1.27%

 

The iShares NASDAQ Biotechnology (IBB) indicated:

  • Wednesday was down -0.35%
  • Tuesday +2.75%
  • Monday +1.82%
  • Friday -3.01%
  • Thursday -1.62%
  • Last Wednesday +2.91%

 

The count - decliners versus gainers:

……. look at the differences in decliners:

  • Wednesday’s decliners ranged from -0.01% <ONCE -$0.01 > to -6.42% <RGNX -$2.40 > in 19 equities;
  • 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;
  • Last Wednesday’s decliners ranged from -0.57% <MDXG -$0.04> to -14.09% < CLLS -$5.43> in 11 equities;

Versus

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

  • Wednesday’s gainers ranged from +0.26% <IMUC +$0.001 > to +13.82% <FATE +$1.39 > in 19 equities;
  • 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;
  • Last Wednesday’s gainers ranged from +0.46% <CYTX +$0.0013> to +15.54% <VCEL +$1.50 > in 28 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.