June 22, 2018 6:11pm

Friday opened down and closed to the upside as momentum fluctuated

Investors need to focus on volumes which easily move the sector to evaluate their speculative positions

 

Out and about: My last week and Tuesday’s specific bias to gene editing stocks CRISPR (CRSP -$2.36), Intellia (NTLA -$0.60) and Editas (EDIT -$0.41) has been reaffirmed

 

It’s a duty and an honor to being a “canary in a coal mine”!  What’s left when one is right so often? RMi is the source investors and traders need – it’s more than opinion, the facts and truth need to be recognized!

 

Henry’omics:

 

From the pre-open newsletter … “a session of playing pick-up-stocks or not, after yesterday’s decline … an equity stress free weekend beckons. The oversold out-weigh the few overbought, though there’s still a question of value lost or to be gained?”

I also stated, “Because sector companies have less analyst coverage than larger companies there tends to be less volume and liquidity in small-caps as a result, from a risk perspective, a shorter-term view is needed.”

Lucky the comeback played through on these being oversold but, how long will that last?

  • Of the 45 companies covered the 19 downside equities finished in a range of -$0.03 to -$0.97 followed by 4 of the biggest bottoms  ranging from -$2.36 to $18.45 while the 24 upside equities oscillated from +$0.02 to $2.00 with 1 top or above the range of $3.65 and 2 flat closes

Friday's close marked the roller-coaster ride this week as trading and algorithmic tensions mounted.

  • Short-term overbought and oversold conditions set the tone of the sector!
  • Today’s sector action revolved around the oversold flashing a BUY signal towards the closing hours of the session.

However, I believe the Russell 2000 is flashing warning signs.

  • Liquidity is another word for demand, so this suggests that demand for stocks will decline as well. Elasticity can be clear and present in a very unpopular way for investors in the Russell 2000 today. The Russell 2000 is already a relatively illiquid market.

What’s more, it is also testing a longer-term resistance line, and if it fails, a 10% decline in the Russell 2000 can be expected. <MarketWatch>.

 

MY working five (5) trend lines:

… The greatest volume to the downside:  XON, BLUE, NTLA, KOOL and SAGE

… Upside volume was weighted to:  VCEL, MDXG, SGMO, BMRN and BTX

… Biggest $ downside:  BLUE (-$18.45), SAGE (-$7.78), QURE (-$3.32), CRSP (-$2.36) and CLLS (-$0.97)

… Best moves to the $ upside: RGNX (+$3.65), RENE.L (+$2.00), RARE (+$1.91), ONCE (+$1.59) and ALNY (+$1.51)

… Flats:  AGTC and VSTM

 

The weekly count - decliners versus gainers:

……. look at the differences in decliners:

  • Friday’s decliners ranged from -0.64% <SLDB -$0.27> to -10.34% <CUR -$0.12> in 19 equities;
  • Thursday’s decliners ranged from -0.18% <CRSP -$0.12 > to -17.25% < CLBS -$1.49> in 36 equities;
  • Wednesday’s decliners ranged from -0.28% < STML -$0.05> to -17.05% <SLDB -$7.33> in 11 equities;
  • Tuesday’s decliners ranged from -1.52% <ALNY -$1.61 > to -0.23% <BCLI -$0.01 > in 19 equities;
  • Monday’s decliners ranged from -0.28% <STML -$0.05 > to -9.47% <BLCM -$0.94 > in 22 equities;
  • Last Friday’s decliners ranged from -0.32% < VYGR -$0.07> to -15.95% < CUR -$0.26> in 16 equities;

Versus

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

  • Friday’s gainers ranged from +0.46% <VCEL +$0.05 > to +9.46% <BLFS +$1.09> in 24 equities;
  • Thursday’s gainers ranged from +0.09% <BMRN +$0.09 > to +18.7% <SLDB +$6.67 > in 9 equities;
  • Wednesday’s gainers ranged from +0.06% <XON +$0.01> to +30.71% <CLBS +$2.03 > in 31 equities;
  • Tuesday’s gainers ranged from +0.04% <BMRN +$0.04 > to +46.36% <SLDB +$13.62 > in 24 equities;
  • Monday’s gainers ranged from +0.43% <BTX +$0.01 > to +31.39% <VSTM +$2.05 > in 20 equities;
  • Last Friday’s gainers ranged from +0.06% <SAGE +$0.10 > to +17.03% < VSTM +$0.95> in 23 equities;

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 11/30 and 4 flats;
  • The mid-day continued negative with an A/DL of 18/27 and 0 flat;
  • The close was positive with an A/DL of 24/19 and 2 flat;

 

Daily analytics and metrics:

  • The Dow rose 119.19 points to 24,580.89; Friday's close marked the first gain for the 30-stock index in nine sessions, snapping its longest losing streak since March 2017.
  • The S&P 500 gained 0.2% to close at 2,754.88,
  • The NASDAQ closed 0.3% lower at 7,692.82.

 

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

  • Friday traded at 13.77, down -5.94%
  • Thursday traded at 14.66, up +14.62%
  • Wednesday traded at 12.79, down -4.19%
  • Tuesday traded at 13.35, up +8.45%
  • Monday traded at 12.31, up +2.75%
  • Last Friday traded at 11.95, down -1.40%

 

The iShares Russell 2000 (IWM) closed:

  • Friday was down -0.36%;
  • Thursday was down -0.96%;
  • Wednesday was up +0.81%;
  • Tuesday was up +0.04%;
  • Monday was up +0.48%;
  • Last Friday was down -0.04%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Friday was down -0.34%
  • Thursday was down -1.13 %
  • Wednesday was up +1.66%
  • Tuesday was up +1.46%
  • Monday was down -0.75%
  • Last Friday was down -0.11%

 

June sessions:

  • Friday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;
  • Thursday closed NEGATIVE with 36 decliners, 9 advancers and 0 flat;
  • Wednesday closed POSITIVE with 11 decliners, 31 advancers and 3 flats;
  • Tuesday closed NEGATIVE with 19 decliners, 24 advancers and 2 flat;
  • Monday (June 18) closed NEGATIVE with 22 decliners, 21 advancers and 2 flat;
  • Friday closed POSITIVE with 16 decliners, 23 advancers and 6 flat;
  • Thursday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
  • Wednesday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
  • Tuesday closed POSITIVE with 17 decliners, 27 advancers and 1 flat;
  • Monday (June 11) closed NEGATIVE with 26 decliners, 18 advancers and 1 flat;
  • Friday closed NEUTRAL with 22 decliners, 22 advancers and 1 flat;
  • Thursday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;
  • Wednesday closed POSITIVE with 17 decliners, 24 advancers and 4 flat;
  • Tuesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;
  • Monday (June 4) closed POSITIVE with 18 decliners, 25 advancers and 2 flat;
  • Friday (June 1) closed was POSITIVE with 15 decliners, 29 advancers and 1 flat;

 

 

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.