RegMed Investors’ (RMi) closing bell; equities flip, flop while playing catch-up

April 25, 2018 5:44pm

After days of emotionless trading and panic

Momentum and volume peaked as few stocks got pushed uphill

The NASDAQ (-0.05%), iShares Nasdaq Biotechnology ETF (IBB -0.1%) and Russell 2000 (RUT -0.18%) continued to the downside

Pre-open indications: 2 HITS

End of day briefing; the “numbers” speak; if you know what happened today, you’ll understand what you need to do tomorrow!

Henry’omics:

Today’s moves … With a dismal open, the S&P 500 Index again tested its 200-day moving average as Q1/18 reporting failed to reignite the market.

A factor unrelated to economic fundamentals could be contributing to the recent weakness, which pushed the Dow +0.25% and the S&P 500 +0.18% in to correction territory for the first time in about two years. Making this factor difficult to quantify is that it is essentially invisible to investors watching major indexes or even individual share prices.

Another major issue, lately … there is NO reward for taking risk as many under-estimate the inclination to profit from ANY upside!

The advance/decline line scenario of 40 covered companies:   

• The open was negative an A/DL to 12/24 and 4 flat;
• 10:30 am saw a positive upside with an A/DL of 19/16 and 5 flats;
• 11:30 am was barely positive slipping with an A/DL of 19/18 and 3 flats;
• The mid-day slipped negative with an A/DL of17/20 and 3 flats;
• The close concluded negative with an A/DL of 15/22 and 3 flat;

Winners and loser:

MiMedx Group (MDXG) was a big winner jumping +$0.81 (+10.90%) to $8.24 followed by uniQure (QURE) flipping +$1.02 (+2.54%) to $29.80 with Regenxbio (RGNX) +$0.50 (+1.38%) to $36.70 while bluebird bio (BLUE) -$0.40 (-0.25%) slipped after being up as high at $165.80 near the close

From the pre-open’s newsletter, “… a game of pick-up-stocks with winds blowing. The question is, has a bottom been ascertained? I don’t see any immediate signs yet, the rumblings have begun as low volume and tight ranges are struggling to break out.”

Followed by, “Although, trading within ranges has provided few clues about where equities could be headed. It’s time for the oversold to be recognized. I am hoping, betting and “praying for “ascension” – the act and process of rising!”

Out and about:

We should be aware of current trends as earnings remain a key trading event, one that may even be growing in importance.

Quarterly results have been causing more stock volatility than normal this year as company-specific news remains pivotal to trading activity, particularly as Q1/18 earnings season is about to unfold with MiMedx Group (MDXG) announcing on 4/26

Over the past few years, sector stock volatility has become concentrated around earnings events.

Investors have no doubt observed examples of this thus far this season – so be prepared.

Pre-open indications: 2 hits

• Sangamo Therapeutics (AGMO) closed down -$0.50 – hit;
• Pluristem (PSTI) closed up +$0.06 – hit;

Review the 18 sessions of April’s close (of 40 covered companies) there have been eleven (11) negative and six (6) positive and one (1) neutral closes:

• Wednesday closed NEGATIVE with 22 decliners, 15 advancers and 3 flats;
• Tuesday closed NEGATIVE with 25 decliners, 9 advancers and 6 flats;
• Monday closed NEGATIVE with 28 decliners, 7 advancers and 5 flat;
• Friday closed NEGATIVE with 22 decliners, 12 advancers and 6 flat;
• Thursday closed NEGATIVE with 28 decliners, 9 advancers and 3 flats;
• Wednesday closed NEGATIVE with 24 decliners, 14 advancers and 2 flat;
• Tuesday closed POSITIVE with 24 decliners, 15 advancers and 1 flat;
• Monday closed NEGATIVE with 21 decliners, 14 advancers and 5 flats;
• Friday closed barely NEGATIVE with 18 decliners, 17 advancers and 5 flats;
• Thursday closed POSITIVE with 8 decliners, 30 advancers and 2 flats;
• 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

MY working five (5) trend lines:

… The greatest volume to the downside:  SGMO, NWBO, VSTM, ATHX and ONCE

… Upside volume was weighted to:  MDXG, BLCM, XOPN, PSTI and ADVM

… Biggest $ downside:  ONCE (-$1.55), SGMO (-$0.50), CLLS (-$0.40), BLUE (-$0.40) and VSTM (-$0.22)

… Best moves to the $ upside:  QURE (+$1.02), MDXG (+$0.81), RGNX (+$0.50), AXGN (+$0.25) and FATE (+$0.17)

… Flats:  ISCO, RENE.L and ADRO

Daily analytics:

The Dow closed higher for the first time in six sessions on Wednesday, recovering from sharp losses seen earlier in the day.

• The Dow closed at 24,083.83, up 59.70 points.
• The S&P 500 also erased earlier losses, closing 0.2 percent higher at 2,639.39.
• The NASDAQ slipped 0.1% to 7,003.74.

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

• Wednesday traded at 17.84, down -1%
• Tuesday traded at 18.02 , up +10.28% …
• Monday traded at 16.34, down -3.20%
• Friday traded at 16.88, up +5.76%
• Thursday traded at 15.96, up +2.31%
• Last Wednesday traded at 15.60, up +2.30%

The iShares Russell 2000 (IWM) indicated:

• Wednesday was down -0.15%
• Tuesday -0.56%
• Monday -0.15%
• Friday -0.54%
• Thursday -0.69%
• Last Wednesday +0.23%

The iShares NASDAQ Biotechnology (IBB) indication:

• Wednesday was down -0.01%
• Tuesday -1.45%
• Monday -0.16%
• Friday -0.88%
• Thursday -1.36%
• Last Wednesday +0.07%

The count - decliners versus gainers:

……. look at the differences in decliners:

• Wednesday’s decliners ranged from -0.25% <BLUE -$0.40 > to -6.49% <KOOL -$0.10 > in 22 equities;
• Tuesday’s decliners ranged from -0.09% <FATE -$0.91 > to -7.37% <QURE -$2.29 > in 25 equities;
• Monday’s decliners ranged from -0.18% <FATE -$0.02 > to -6.05% <RGNX -$2.40 > in 28 equities;
• Friday’s decliners ranged from -0.27% <FATE -$0.03 > to -13.89% <VTGN -$0.15 > in 22 equities;
• Thursday’s decliners ranged from -0.18% <FATE -$0.02 > to -12.81% <NWBO -$0.026> in 28 equities;
• Last Wednesday’s decliners ranged from -0.06% <CLLS -$0.02> to -10.96% <NWBO -$0.025 > in 24 equities;

Versus

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

• Wednesday’s gainers ranged from +0.65% <AXGN +$0.25 > to +12% <AST +$0.15 > in 15 equities;
• Tuesday’s gainers ranged from +0.35% <CYTX +$0.001> to +2.33% <OSIR +$0.18 > in 9 equities;
• Monday’s gainers ranged from +0.33% <XON +$0.06 > to +3.47% <ATHX +$0.07 > in 7 equities;
• Friday’s gainers ranged from +0.28% <ONCE +$0.23> to +7.06% <NWBO +$0.0125> in 12 equities;
• Thursday’s gainers ranged from +0.25% <VSTM +$0.01 > to +5.44% < OSIR +$0.40> in 9 equities;
• Last Wednesday’s gainers ranged from +0.38% <BSTG (+$0.01 > to +14.01% <KOOL +$0.22 > in 14 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.