April 28, 2018 7:44pm

The sector is preparing to end on a positive note but volatile month of April

Be ready, May is typically a mixed month for the major indexes, and the results are particularly bad in midterm years

 

The NASDAQ (+0.02%) and IBB (+0.29%) were up while volume was still low

Pre-open indications: 1 MISS

 

Out about: Sangamo Therapeutics (SGMO) announced the California Institute for Regenerative Medicine (CIRM) has awarded an $8 million grant to evaluate ST-400, a gene-edited cell therapy candidate for people with transfusion-dependent beta-thalassemia.

 

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 … we saw daylight after darkness!

Some sector “names” stocks hogged the lights – BLUE, ONCE and AXGN again while QURE popped as SGMO jumped on the closing of the offering

While losers hid in the shade – RGNX, CLBS, OSIR and MDXG as FATE slipped from Thursday’s upside

 

Sorry late in delivery (Saturday) took a fall … overdoing the yard work again!

 

The advance/decline line scenario of 40 covered companies:   

  • The open was negative an A/DL to 15/21 and 3 flat;
  • 10:00 am reversed to a positive with an A/DL of 25/13 and 5 flats;
  • The mid-day stayed positive with an A/DL of21/18 and 1 flat;
  • The close concluded positive with an A/DL of 27/10 and 3 flat;

 

From Friday’s pre-open’s newsletter, “… I repeat it’s time for the oversold to be recognized if you panic and sold; it’s time to consider getting back in. The sector can easily go up from here whether today, tomorrow or Monday – click some BUY orders.”

As I had stated, “A bit hesitant with my prognostic “eyes”, after a big jump in the A/DL (advance/decline line), low volume, weakened technicals, dramatic upside volatility, questionable relative strength – have I listed enough – I’d skim and take some profit from many of the upsides.”

 

Pre-open indications: 1 miss

  • MiMedx Group (MDXG) closed down -$0.21 – miss yet, I am maintaining a BUY;

 

Out and about:

Sangamo Therapeutics’ (SGMO) Investigational New Drug Application for ST-400 has been accepted by the U.S. FDA and the first site is now initiated for a P1/2 clinical trial. SGMO expects to begin enrolling patients in this study in the first half of 2018.

Beta-thalassemia is an inherited blood disorder caused by mutations in the beta-globin gene that leads to reduced or absent production of adult hemoglobin, the protein in red blood cells that carries oxygen to cells throughout the body. The disorder causes the destruction of red blood cells, which results in severe anemia and reduced oxygen transport to various tissues in the body.

  • ST-400 is an autologous cell therapy that involves gene editing of a patient's own hematopoietic stem cells (HSCs) using zinc finger nuclease (ZFN) technology. It is being developed with the aim of providing a one-time treatment for people with transfusion-dependent beta-thalassemia by increasing production of fetal hemoglobin, which can more effectively carry oxygen and protect thalassemic red blood cells from premature destruction, potentially eliminating the need for chronic blood transfusions. As part of the Phase 1/2 clinical trial protocol, a patient's HSCs are isolated from the blood, and the cells then undergo ex vivo gene editing using ZFNs to modify a specific sequence of the BCL11A gene that suppresses fetal hemoglobin production in erythrocytes. Following a conditioning regimen, patients will be infused with their own modified HSCs, with the goal of producing increased amounts of fetal hemoglobin to compensate for the decrease in functional adult hemoglobin levels. As a result, ST-400 could potentially reduce or eliminate the need for chronic blood transfusions and ameliorate the complications from major organ damage due to iron overload.

 

Review the 20 sessions of April’s close (of 40 covered companies) there have been eleven (11) negative, seven (7) positive and one (1) neutral closes:

  • Friday closed POSITIVE with10 decliners, 27 advancers and 3 flats;
  • Thursday closed POSITIVE with 18 decliners, 21 advancers and 1 flat;
  • 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:  MDXG, FATE, BTX, RGBX and VTGN

Upside volume was weighted to:  SGMO. NWBO, ONVO, XON and ADVM

Biggest $ downside:  FATE (-$0.41), RGNX (-$0.15), BLCM (-$0.11), OSIR (-$0.10) and MDXG (-$0.10)

Best moves to the $ upside:  BLUE (+3.30), QURE (+$0.69), XON (+$0.67), SGMO (+$0.50) and RENE.L (+$0.50)

… Flats:  VCEL, BSTG and PSTI

 

Daily analytics:

Have we reached a peak in momentum? In economic news, the U.S. economy grew by 2.3% in Q1/18, the Commerce Department said.

  • The NASDAQ composite erased a sharp gain on Friday closing flat at 7,119.80.
  • The Dow closed 11.15 points lower at 24,311.19.
  • The S&P 500 rose 0.1%to 2,669.91.

 

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

  • Friday traded at 15.41 ,down -5.11 %
  • Thursday traded at 16.26, down -8.86%
  • Wednesday traded at 17.84, down -1%
  • Tuesday traded at 18.02 , up +10.28%
  • Monday traded at 16.34, down -3.20%
  • Last Friday traded at 16.88, up +5.76%

 

The iShares Russell 2000 (IWM) indicated:

  • Friday was down -0.14%
  • Thursday +0. 46%
  • Wednesday 0.15%
  • Tuesday -0.56%
  • Monday -0.15%
  • Last Friday -0.54%

 

The iShares NASDAQ Biotechnology (IBB) indication:

  • Friday was up +0.29%
  • Thursday +1.98%
  • Wednesday -0.01%
  • Tuesday -1.45%
  • Monday -0.16%
  • Last Friday -0.88%

 

The count - decliners versus gainers:

……. look at the differences in decliners:

  • Friday’s decliners ranged from -0.4% <RGNX -$0.15> to -3.7% <AST -$0.05 > in 10 equities;
  • Thursday’s decliners ranged from -0.75% <CAPR -$0.01> to -6.07% <SGMO -$1.05 > in 18 equities;
  • 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;
  • Last Friday’s decliners ranged from -0.27% <FATE -$0.03 > to -13.89% <VTGN -$0.15 > in 22 equities;

Versus

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

  • Friday’s gainers ranged from +0.45% < ONCE +$0.35 > to +20.09% <NWB) +$0.035 > in 27 equities;
  • Thursday’s gainers ranged from +0.30% <BCLI +$0.01> to +9.41% <VTGN +$0.08 > in 21 equities;
  • 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;
  • Last Friday’s gainers ranged from +0.28% <ONCE +$0.23> to +7.06% <NWBO +$0.0125> in 12 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.