July 23, 2018 5:39pm

… Is an allegorical expression of the strange side or the twilight zone as in “our” sector and this market?

It’s hard some days to stay objective through the ebb and flow as the sector moves backwards

 

Pre-open indications: 7 hits and 4 miss

Research Notes: 1 hit and 2 miss, AGTC (+$0.30), ALNY (-$0.22) and CUR (+$0.22)

Earnings: BrainStorm Cell Therapy (BCLI) 1st to announce Q2/18 and update; it was a bust; BCLI closed down -$0.09 or -2.15% to $4.00

 

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Henry’omics:

Sentiment took a nose dive in the first hour after a positive open.

The sector is either flying high and/or plummenting with gravity.  Sentiment is an influencer with multiple factors contributing to the sector's fall as the month comes slowly to an end after a good run toward the mid-month (see the breakdown at the end of the newsletter).

The real question is ... whether the downside can be continued as the usual response to the fall is the oversold springs a new life of highs!

Of the 45 companies covered on Monday; 25 downside equities finished in a range of -$0.36 (SAGE) to -$2.94 (SLDB) while the 18 upside equities oscillated from +$0.05 (FATE) to $0.22 (CUR) with 2 flat closes.

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 22/20 and 3 flats;
  • The first half hour was disastrously negative with an A/DL of 14/28 and 3 flats;
  • The mid-day stayed negative with an A/DL of 19/24 and 2 flats;
  • The close was negative with an A/DL of 18/25 and 2 flats;

 

Pre-open indications: 7 hit and 4 miss

  • Crisper (CRSP) closed down -$1.08 – hit;
  • Editas (EDIT) closed down -$0.88 – hit;
  • Intellia (NTLA) closed down -$1.17 – hit;
  • BioLife Solutions (BLFS) closed down -$0.63 – hit;
  • Biostage (BSTG) closed flat – hit;
  • Athersys (ATHX) closed up +$0.07 – miss;
  • Asterias Biotherapeutics (NYSEMKT: AST) closed down -$0.05 – miss;
  • Fate Therapeutics (FATE) closed up +$0.05 – hit; 
  • Sangamo Therapeutics (SGMO) closed -$0.70 – hit;
  • Regenxbio (RGNX) closed down -$2.80 – miss;
  • Verastem Oncology (VSTM) closed down -$0.37 – miss;

 

From the pre-open newsletter titled, “investment is always a question of value -overbought, oversold; the condition is the use of the term ‘over …”

I also stated, “The proposed acquisition would combine SGMO's ex-vivo gene editing capabilities and TxCell's Treg expertise and would position Sangamo as a leader in CAR-Treg development? As listed (Yahoo), SGMO’s cash position is $229.53 M minus -$84.31 M leaves approximately $175.22 M in cash in the coffers. WHY a total cash deal?” More than many asked the same question!

 

Monday: The hits just keep coming as the gene “editors” downside drift continues:  CRISPR Therapeutics (CRSP -$1.08 or -1.85%); Editas Medicine (EDIT -$0.88 or -2.23%) and Intellia Therapeutics (NTLA -$1.17 or -3.70%) … investors are speaking to negative trust of researchers!

Friday: follow the bouncing share pricing, a session of speculation to the downside: CRISPR Therapeutics (CRSP -$0.04 or +0.07%); Editas Medicine (EDIT +$0.12 or +0.33%) and Intellia Therapeutics (NTLA -$0.01 or -0.03%) …

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 +$0.21 or +0.36%) 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%), CRISPR Therapeutics (CRSP +$1.95 or +3.25%) and Intellia Therapeutics (NTLA +$2.00 or +6.81%) …

Last Monday, gene editing stocks dropped like stones in a lake: Editas Medicine (EDIT -$2.70 or -7.21%), CRISPR Therapeutics AG (CRSP -$5.65 or -8.60%) and Intellia Therapeutics (NTLA -$3.24 or -9.94%).

 

MY working trend (5 largest) lines:

… The greatest volume to the downside:  SGMO, VSTM, VCEL, BMRN and CRSP

… Upside volume was weighted to:  BTX, MDXG, CUR, ATHX and ONVO

… Biggest $ downside: BLUE (-$3.10), RGNX (-$2.80), SLDB (-$2.94), IONS (-$1.94) and RARE (-$1.32)

 … Best moves to the $ upside: RENE.L (+$1.50), AXGN (+$0.90), VYGR (+$0.67), GBT (+$0.75) and MESO (+$0.50)

… Flats:  HSGX and BSTG

 

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

……. look at the differences in decliners:

  • Monday’s decliners ranged from -0.21% <SAGE -$0.36 > to -6.82% <SLDB -$2.94 > in 25 equities;
  • Friday’s decliners ranged from -0.03% <NTLA (-$0.01 > to -6.97% < MDXG -$0.28> in 24 equities;
  • 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;
  • Last Monday’s decliners ranged from -0.25% <RARE -$0.21> to -12.85% <BSTG -$0.51> in 32 equities;

Versus

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

  • Monday’s gainers ranged from +0.46% <FATE +$0.05 > to +18.80% <CUR +$0.22 > in 18 equities;
  • Friday’s gainers ranged from +0.10% <OSIR +$0.01 > to +4.12% <BLFS +$0.87 > in 15 equities;
  • 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;
  • Last Monday’s gainers ranged from +0.19% <SAGE +$0.32 > to +5.99% <KOOL +$0.027 > in 10 equities;

 

Daily analytics and metrics:

  • The Dow closed down -13.83 points or -0.06% to 25,044.39
  • The S&P 500 climbed 5.15 points or +0.18% to close at 2806.98
  • The NASDAQ climbed +21.67 points or +0.28% higher to 7, 8411.87

 

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

  • Monday traded at 12.62, down -1.87%
  • Friday traded at 12.83, down -0.31%
  • Thursday traded at 12.87, up +6.36%
  • Wednesday traded at 11.94, down -1%
  • Tuesday traded at 12.66, down -6%
  • Last Monday traded at 12.83, up +5.34%

 

The iShares Russell 2000 (IWM) closed:

  • Monday was up +0.12%;
  • Friday was down -0.42%;
  • Thursday was up +0.68%;
  • Wednesday was up +0.28%;
  • Tuesday was up +0.43%;
  • Last Monday was down -0.40%;

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Monday was down -0.06 %
  • Friday was down -0.08%
  • Thursday was up +0.10%
  • Wednesday was down -0.09%
  • Tuesday was up +0.75%
  • Last Monday was down -0.73%

 

JULY sessions:

Monday (7/23) closed NEGATIVE with 25 decliners, 18 advancers and 2 flats;

Friday closed NEGATIVE with 24 decliners, 15 advancers and 5 flats;

Thursday closed POSITIVE with 14 decliners, 28 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.