July 19, 2018 5:40pm

What’s troubling the sector – the issue of sustainability …?

As I had stated, “Investors chase fads like gene editing companies and we have just seen share pricing get deposed in the short term. Popularity fades – now they’re just story “stocks” until proven otherwise!

Enjoy the high, there’s always a downer after

 

Pre-open indications: 3 HIT and 6 MISS

 

I say today what others won’t, so you can do what others can’t!

 

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Henry’omics:

 

From the pre-open newsletter titled, “rhyme or reason, Thursday – a motive for appreciation or cause of concern “in the short run, the market is like a voting machine--tallying up which firms are popular and unpopular” <Ben Graham>.”

I also stated, “Re the title, “A voting machine counts votes. Votes are based on sentiment of people at a given time. Sentiment can change — and it's difficult to measure accurately. A weighing machine is much more precise and concrete — it's easy to measure weight accurately.

The value usually doesn't change quickly but when it does change a lot there is a noticeable difference. The metaphor suggests that in the short term prices are driven by sentiment while in the long term trends are driven by something you can actually measure more concrete — clinical data and financial results.”

 

The barrel role:

Thursday for gene editing companies was a day of “rhyme or reason” with the oversold getting yet again ready to be overbought again as trading speciation controlled the session: CRISPR Therapeutics (CRSP -$0.14 or -0.24%) stayed down for the count; Editas Medicine (EDIT +$0.75 or +2.12%) and Intellia Therapeutics (NTLA +$0.63 or +2.03%) … flew close to the flatlands to not melt their upside (the Icarus story) after …

Wednesday, what has speculation born: gene editing stocks dumped: Editas Medicine (EDIT -$1.08 or -2.96%), CRISPR Therapeutics (CRSP -$3.48 or -5.61%) and Intellia Therapeutics (NTLA -$0.36 or -1.15%) …

Tuesday, gene editing stocks high jumped in response to their dramatic decline: Editas Medicine (EDIT +$1.26 or +3.58%) with 606.79 K shares traded, CRISPR Therapeutics (CRSP +$1.95 or +3.25%) with 787.9 K shares traded and Intellia Therapeutics (NTLA +$2.00 or +6.81%) with 637.4 K shares traded …

Monday, gene editing stocks dropped like stones in a lake: Editas Medicine (EDIT -$2.70 or -7.21%) with 1.52 M shares traded <3 month average = 1.52 M, CRISPR Therapeutics AG (CRSP -$5.65 or -8.60%) with 2.83 M shares traded <3 month average = 1.55 M shares> and Intellia Therapeutics (NTLA -$3.24 or -9.94%) with 1.33 m shares traded <3 month average = 928.4 K shares> …

As I had stated, “After lower volume, a quick rebound post a steep decline … makes one think another SELL “plague” is in store?  There was …!

 

Of the 45 companies covered on Thursday; 14 downside equities finished in a range of -$0.005 (KOOL) to -$3.27 (ONCE) while the 28 upside equities oscillated from +$0.03 (HSGX) to $1.05 (IONS) with 2 flat closes.

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 11/28 and 6 flats;
  • The mid-day saw a positive reversal with an A/DL of 30/14 and 1 flat;
  • The close was positive with an A/DL of 28/14 and 2 flats;

 

Pre-open indications: 3 hit and 6 miss

  • Crispr (CRSP) closed down -$0.14 – hit;
  • Editas (EDIT) closed up +$0.75 – miss;
  • Intellia (NTLA) closed up +$0.63 – miss;
  • BioLife Solutions (BLFS) closed up +$0.96 – miss;
  • Biostage (BSTG) closed up +$0.70 – miss;
  • Athersys (ATHX) closed up +$0.07 – miss;
  • Asterias Biotherapeutics (NYSEMKT: AST) closed down -$0.03 – miss;
  • Fate Therapeutics (FATE) closed up +$0.05 – hit;  
  • Verastem Oncology (VSTM) closed up +$0.06 – hit;

 

MY working trend (5 largest) lines:

… The greatest volume to the downside:  CRSP, SGMO, ONVO, ONCE and GBT

… Upside volume was weighted to:  MDXG, VSTM, XON, VCEL and BMRN

… Biggest $ downside:  ONCE (-$3.27), RARE (-$0.78), BLUE (-$0.60), GBT (-$0.60) and CLLS (-$0.51)

… Best moves to the $ upside: IONS (+$1.05), BLFS (+$0.96), ALNY (+$0.89), EDIT (+$0.75) and QURE (+$0.73)

… Flats:  BCLI and RENE.L

 

The weekly count - decliners versus gainers – looks at the view from different angles:

……. look at the differences in decliners:

  • Thursday’s decliners ranged from -0.24% < CRSP -$0.14> to -3.83% <ONCE -$3.27 > in 14 equities;
  • Wednesday’s decliners ranged from -0.13% <RGNX -$0.10 > to -8.59% <VYGR -$1.71 > in 30 equities;
  • Tuesday’s decliners ranged from -11% < KOOL -$0.0529> to -0.36% <IONS -$0.16 > in 13 equities;
  • Monday’s decliners ranged from -0.25% <RARE -$0.21> to -12.85% <BSTG -$0.51> in 32 equities;
  • Friday’s decliners ranged from -0.39% <BOLD -$0.15 > to -10.34% <VCEL -$1.05 > in 17 equities;
  • Last Thursday’s decliners ranged from -2.17% <ONVO -$0.03 > to -7.94% <RGNX -$6.45 > in 19 equities;

Versus

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

  • Thursday’s gainers ranged from +0.18% <BMRN +$0.18 > to +21.68% <BSTG +$0.70 > in 30 equities;
  • Wednesday’s gainers ranged from +0.14% <KOOL+$0.0006> to +4.13% <BTX +$0.095 > in 13 equities;
  • Tuesday’s gainers ranged from +0.36% < SAGE +$0.61> to +12.69% < MESO +$0.76> in 29 equities;
  • Monday’s gainers ranged from +0.19% <SAGE +$0.32 > to +5.99% <KOOL +$0.027 > in 10 equities;
  • Friday’s gainers ranged from +0.07% < CLLS +$0.02> to +13.19% <CLBS +$0.72 > in 25 equities;
  • Last Thursday’s gainers ranged from +0.25% < BSTG +$0.01> to +3.20% <BMRN +$3.30> in 24 equities;

 

Daily analytics and metrics:

  • The Dow dropped 134.79 points to close at 25,064.50,
  • The S&P 500 slipped 0.4% to 2,804.49,
  • The NASDAQ pulled back -29.15 points or - 0.4%to 7,825.30.

 

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

  • Thursday traded at 12.87, up +6.36%
  • Wednesday traded at 11.94, down -1%
  • Tuesday traded at 12.66, down -6%
  • Monday traded at 12.83, up +5.34%
  • Friday traded at 12.18, down -3.18%
  • Last Thursday traded at 12.59, down -7.63 %

 

The iShares Russell 2000 (IWM) closed:

  • Thursday was up +0.68%;
  • Wednesday was up +0.28%;
  • Tuesday was up +0.43%;
  • Monday was down -0.40%;
  • Friday was down -0.26%;
  • Last Thursday was up +0.47%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Thursday was up +0.10%
  • Wednesday was down -0.09%
  • Tuesday was up +0.75%
  • Monday was down -0.73%
  • Friday was up +0.17%
  • Last Thursday was up +1.17%

 

JULY sessions:

Thursday closed POSITIVE with 28 decliners, 14 advancers and 2 flats;

Wednesday closed NEGATIVE with 30 decliners, 13 advancers and 2 flat;

Tuesday closed POSITIVE with 13 decliners, 29 advancers and 3 flat;

Monday (7/16) closed NEGATIVE with 32 decliners, 10 advancers and 3 flat;

Friday closed POSITIVE with 17 decliners, 25 advancers and 3 flat;

Thursday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Wednesday closed POSITIVE with 18 decliners, 24 advancers and 3 flat;

Tuesday closed NEGATIVE with 29 decliners, 15 advancers and 1 flat;

Monday (7/9) closed POSITIVE with 18 decliners, 22 advancers and 5 flat;

Friday closed POSITIVE with 8 decliners, 35 advancers and 2 flat;

Thursday closed POSITIVE with 18 decliners, 23 advancers and 4 flat;

Wednesday (7/4) was a holiday;

Tuesday closed POSITIVE with 9 decliners, 33 advancers and 3 flat;

Monday (7/2) closed POSITIVE with 15 decliners, 27 advancers and 3 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.