May 11, 2018 5:25pm

NASDAQ (-2.09 points or -0.03%) takes a hit after the President Trump criticizes drug makers, middlemen and foreign governments for increasing prices Americans pay

However, it stops short of allowing Medicare to directly work with manufacturers on prices while the IBB jumps +2.75% with the session’s volume still low

 

Be ready for weakness next week …

Pre-open indications: 4 hits and 3 miss (sold into yesterday’s strength)

Quarterly results: 31 Q1 and 2 Q3 "earnings" of 45 covered reported

 

End of day briefing; the “numbers” speak; what I do in a day is reducing the sector’s “happenings” so you, the investor get to know the perspectives of what transpired today in a 15 minute read to understand what you need to do tomorrow!

Henry’omics:

Today’s moves … Momentum is slowing as most Fridays are listless not wanting exposure over a weekend of political or geopolitical issues.

After four (4) up sessions and three (3) in a row this week I’d be on alert for WEAKNESS!

As tepid first-quarter 2018 results highlighted LPS (loss-per-share) softness yet, in most cases cash positions were aiding “runways” which extends platform development and their ISSUES!

 

Some sector “names” stocks kept the lights on: BLUE (again), SAGE (again), RARE, IONS and GBT (after 2 session losses)

While losers hid in the open – XON, FATE, BMRN, FXXX and OSIR

 

The advance/decline line scenario of 45 covered companies:   

  • The open started positive with an ADL of 27/18 and 0 flat;
  • The mid-day stayed positive with an A/DL of 23/20 and 2 flats;
  • The close concluded positive with an A/DL of 29/16 and 0 flat;

 

From Friday’s pre-open newsletter, “… the sector needs to cover all the bases. The curve balls of street expectations and results are not as weighty as anticipated. Cash positions are “in a league of their own” in most cases and those that aren’t will have serious “runway” and investment issues re capital raises - time to bunt!”

As I had stated, “Another session of the IBB, XBI and XLV NOT indicating, a Friday ending with economic data; the A/DL’s (advance/decline line) alternating cycle, 33 of 45 covered companies having announced Q1 and Q3’s, quarterly results,  the week’s ebbing of the IBB - I am looking to profit from a few upside positions to sell into strength!”

And, “President Trump will unveil a plan today to limit prices on some costly drugs, another harangue that will go where after the heated rhetoric!”

 

Pre-open indications – 4 hits and 3 miss:

  • Athersys (ATHX) closed down -$0.02 – miss;
  • BioLife Solutions (BLFS) closed down -$0.29 – miss;
  • BioTime (NYSEMKT: BTX) closed down -$0.02 – hit;
  • Editas Medicine (EDIT) closed up +$1.62 – miss;
  • Fate Therapeutics (FATE) closed down -$1.65 – hit;
  • Intrexon (XON) closed up +$3.68 – hit;
  • Regenxbio (RGNX) closed up +$2.20 – hit;

 

MY working five (5) trend lines:

… The greatest volume to the downside:  XON, MDXG, FATE, BMRN and ATHX

… Upside volume was weighted to:  VSTM, ONVO, SGMO, IONS and CRSP

… Biggest $ downside:  XON (-$3.68), FATE (-$1.89), BMRN (-$1.06), STML (-$0.420 and QURE (-$0.37)

… Best moves to the $ upside:  SAGE (+$8.75), BLUE (+$8.20), RARE (+4.53), IONS (+$2.91) and ALNY (+$2.71)

… Flats:  NONE

 

The month of May:

  • Friday closed POSITIVE with 16 decliners, 29 advancers and 0 flat;
  • Thursday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
  • Wednesday closed POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Tuesday closed NEGATIVE with 28 decliners, 16 advancers and 1 flat;
  • Monday (May 7) closed POSITIVE with 15 decliners, 29 advancers and 1 flat;
  • Friday closed POSITIVE with 8 decliners, 34 advancers and 3 flat
  • Thursday closed NEGATIVE with 29 decliners, 11 advancers and 5 flats;
  • Wednesday closed POSITIVE with 15 decliners, 22 advancers and 8 flats;
  • Tuesday (May 1) closed POSITIVE with 15 decliners, 25 advancers and 5 flats;

 

Daily analytics:

President Donald Trump announced a series of changes intended to overhaul health-care policy in the U.S.

  • The Dow closed up +0.37% was up 91.64 points at 24,831.17,
  • The S&P 500 index was trading up a slight 0.17% or +4.65 points at 2,727.72,
  • The NASDAQ was off 0.3% or 2.09 points at 7,402.88.

 

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

  • Friday traded at 12.86, down -2.80%
  • Thursday traded at 13.23, down -1.42%
  • Wednesday traded at 13.41, down -8.84%
  • Tuesday traded at 14.71, down -0.27%
  • Monday traded at 14.75, down -0.14%
  • Last Friday traded at 14.77, down -7.11 %

 

The iShares Russell 2000 (IWM) indicated:

  • Friday closed up +0.18%              
  • Thursday closed up +0.53 %
  • Wednesday +0.56%
  • Tuesday +0.78%
  • Monday was up +0.84%
  • Last Friday +1.22%

 

The iShares NASDAQ Biotechnology (IBB) indication:

  • Friday closed up +2.75%
  • Thursday closed up +0.06%
  • Wednesday +1.35%
  • Tuesday -0.57%%
  • Monday was up +0.64%
  • Last Friday +1.06%

 

The count in May - decliners versus gainers:

……. look at the differences in decliners:

  • Friday’s decliners ranged from -0.24% <CLBS -$0.01> to -19.64% <XON -$3.66 > in 16 equities;
  • Thursday’s decliners ranged from -0.24% <BLFS -$0.02 > to -12% <KOOL -$0.18 > in 18 equities;
  • Wednesday’s decliners ranged from -0.38% <HSGX -$0.01> to -7.49% <MDXG -$0.60 > in 12 equities;
  • Tuesday’s decliners ranged from -0.18% <BMRN -$0.16 > to -9.85% <SGMO -$1.60 > in 28 equities;
  • Monday’s decliners ranged from -0.25% < RGNX -$0.10> to -5.67% <SLDB -$1.07> in 15 equities;
  • Last Friday’s decliners ranged from -0.28% <XON -$0.05 > to -16.14% <ADVM -$1.025 > in 8 equities;

Versus

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

  • Friday’s gainers ranged from +0.13% <SLDB +$0.03> to +16% < AST +$0.20> in 29 equities;
  • Thursday’s gainers ranged from +0.11% <ONCE +$0.08 > to +10.91% <BSTG +$0.33 > in 26 equities;
  • Wednesday’s gainers ranged from +0.24% <VSTM +$0.01> to +16.77% <SLDB +$2.89 > in 34 equities;
  • Tuesday’s gainers ranged from +0.11% <XON +$0.02 > to +7.96% <GBT +$3.60 > in 16 equities;
  • Monday’s gainers ranged from +0.17% <BLUE +$0.30 > to +7.85% <BCLI +$0.27 > in 29 equities;
  • Last Friday’s gainers ranged from +0.17% <SAGE +$0.25 > to +17.20% <SLDB +$2.77 > in 34 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.