June 1, 2018 5:37pm

For the upside, volume is still low

So I say consider where your portfolio wants to be through the summer months

 

Volatility will always be a given

 

Pre-open indications: 2 HIT and 2 MISS

The 15 downside equities expired in a range of -$0.04 to -$1.78 while the 29 upside equities fluctuated from +$0.01 to +$3.35

 

We keep you informed, if you want to be knowledgeable of the “bones” of the sector - be a subscriber to understand what you need to do in Monday’s market. Let the “numbers” speak since sentiment is capricious!


Henry’omics:

From the pre-open newsletter, “a sign from ETF heaven, June is off to a good start.”

New month, positive non-farm payroll numbers, despite geopolitics, but that could also bring added volatility – made for a more than decent close of the session and the sector!

Add in a very successful $65 M offering for Vericel (VCEL) priced at $13.00 with increased (3.75 M to 5 M) share offering and overallotment (625 k to 750 K) shares – was it a climax for all until the real world steps-in!

Be ready for the rhetoric after Trump slapped tariffs on the European Union, Mexico and Canada. The EU threatened the same, saying it would impose countermeasures of its own, while Canada Foreign Minister plans to slap dollar-for-dollar tariffs on the U.S.

 

Sticks and (negative news) stones will break some (share pricing) bones  but words will only decrease the ante so it (the sector and market) can come back!

Also remember tulips bloom in the spring – and we all know the history of tulips!

 

I suggest reducing positions, producing cash for the “swoon” days – I am NOT saying SELL all but reduce the edges, add to some but remain QUIT to DEPART on sins of divergence and they have BEEN flashing!

 

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 28/15 and 2 flats;
  • The mid-day stayed positive an A/DL of 28/16 and 1 flat;
  • The close was positive with an A/DL of 29/15 and 1 flat;

 

Pre-open indications: 2 HIT and 2 MISS

  • bluebird bio (BLUE) closed up +$3.35 – hit;
  • CRISPR Therapeutics (CRSP) closed down -$1.78 – miss;
  • Editas Medicine (EDIT) closed down -$1.31 – hit;
  • Vericel (VCEL) closed up +$0.95 – miss;

 

Last six (6) sessions:

  • Friday (June 1) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;
  • Thursday (May 310 closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Wednesday closed was POSITIVE with 12 decliners, 31 advancers and 2 flats;
  • Tuesday closed NEGATIVE with 27 decliners, 15 advancers and 3 flat;
  • Monday was a holiday
  • Last Friday closed NEGATIVE with 21 decliners, 18 advancers and 6 flat;

 

MY working five (5) trend lines:

The greatest volume to the downside:  ONVO, VSTM, CRSP, MDXG and EDIT

Upside volume was weighted to:  VCEL, SGMO, BMRN, ATHX and BLCM

Biggest $ downside:  CRSP (-$1.78), NTLA (-$1.65), EDIT (-$1.31), ONVO (-$0.52) and RGNX (-$0.50)

Best moves to the $ upside:  BLUE (+$3.35), GBT (+$1.60), BMRN (+$1.58), ALNY (+$1.18) and VCEL (+$0.95)

… Flats:  STML

 

Daily analytics:

A stronger-than-expected jobs report pushed stocks higher on Friday as indexes recovered some of the losses seen in the previous session.

  • The Dow rose 219.37 points or +0.90% to close at 24,635.21.
  • The S&P 500 gained +29.35 points or +1.1% to finish at 2,734.21.
  • The NASDAQ advanced +112.21 points or +1.5% to 7,554.33

 

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

  • Friday traded at 13.46, down -12.77%
  • Thursday traded at 15.43, up +3.38%
  • Wednesday traded at 14.89, down -2.14%
  • Tuesday traded at16.98, up +28.44%
  • Monday was a holiday
  • Last Friday traded at 13.22, up +5.51%

 

The iShares Nasdaq Biotechnology (IBB) indicated an upside of +0.36% and the iShares Russell 2000 (IWM) indicated an UPSIDE of +0.55% in Friday’s pre-open;

The iShares Russell 2000 (IWM) closed:

  • Friday was up +0.65%
  • Thursday was down -0.84%
  • Wednesday was up +1.57%
  • Tuesday was down -0.12%
  • Monday was a holiday
  • Last Friday closed down -0.15 %

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Friday was up +1.28%
  • Thursday was down -0.06%
  • Wednesday was up +1.34%
  • Tuesday was down -0.45%
  • Monday was a holiday
  • Last Friday closed up +0.22%

 

The count in May - decliners versus gainers:

……. look at the differences in decliners:

  • Friday’s decliners ranged from -0.09% <IONS -$0.04 > to -26.40% <ONVO -$0.52 > in 15 equities;
  • Thursday’s decliners ranged from -0.29% <BMRN -$0.26 > to -6.36% <CRSP -$4.68 > in 18 equities;
  • Wednesday’s decliners ranged from -0.24% <MDXG -$0.02 > to -3.13% <AST -$0.05> in 12 equities;
  • Tuesday’s decliners ranged from -0.22% < AXGN -$0.10> to -4.56% <BSTG -$0.13> in 27 equities;
  • Monday was a holiday
  • Last Friday’s decliners ranged from -0.21% <GBT -$0.10> to -6.11% <VSTM -$0.35 > in 21 equities;

Versus

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

  • Friday’s gainers ranged from +0.25% <CLBS +$0.01> to +9.09% <BSTG +$0.25 > in 29 equities;
  • Thursday’s gainers ranged from +0.15% <FIXX +$0.03 > to +67.39% < AXGN +$2.95> in 24 equities;
  • Wednesday’s gainers ranged from +0.07% <BMRN +$0.06 > to +7.03% <RGNX +$3.55 > in 31 equities;
  • Tuesday’s gainers ranged from +0.08% <ALNY +$0.08 > to +7.49% <SLDB +$1.42 > in 15 equities;
  • Monday was a holiday
  • Last Friday’s gainers ranged from +0.06% <FIXX +$0.06 > to +5.53% <BCLI +$0-.24 > 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.