August 6, 2018 6:11pm
There is a trading cost but, it’s a cost of trading which negates some of the downside if caught without your waders
Issue, the water and volume is still very low
Pre-open indications: 6 hit and 2 miss (both by pennies)
Q2/18 Earnings: Vericel (VCEL -$0.05) – net loss of $4.7 M or -$0.12 per share; Fate Therapeutics (FATE +$0.36) net loss of $19.7 M or -$0.37 per share and Editas Medicine (EDIT +$0.41) – net loss of $38.7 M or -$0.82 per share
Starting the week with a freebee! Consider these end-of-day results as Tuesday’s primer. Every investor should want to know WHY, WHAT, HOW and WHEN to roll in and out?
Never leave an investor uninformed!
Henry’omics:
From the pre-open newsletter: “why is the sector like a fishing hole? Because the oversold could be biting and a few of last week’s “released” may look appetizing.”
The positive surprises in this week’s earnings season are stronger and that's helping sentiment!
The biggest takeaway from this earnings season is that "runways” are longer but ... the forecasts flip-flop!
Equities came into Monday's session after posting weekly gains last week. The S&P 500 (+0.8%) and Dow (+0.01%) rose last week; notching their fifth straight weekly gain. The NASDAQ gained nearly 1% last week.
Another indicator of sentiment is the question answered: “Who reported last week and on the list of oversold or a possible rebound? 7 ups and 2 downs:
AXGN – up +$0.60;
NTLA – up +$1.29;
CLLS – up +$0.10;
ADRO – down -$0.10;
ALNY – up +$1.42;
BMRN – down -$1.52;
BTX – down -$0.01;
RARE – Up +$3.64;
BLUE – up +$5.15;
Of the 45 companies covered on Monday; 19 downside equities finished in a range of -$0.0071 (KOOL) to -$1.52 (BMRN) while the 24 upside equities oscillated from +$0.01 (ONVO) to $5.15 (BLUE) with 2 flat close (AGTC and AST).
Daily analytics and metrics:
- The NASDAQ advanced +0.6% or +47.66 points to 7,859.68 posting a five-day winning streak, its longest since May.
- The Dow climbed +0.16% or +39.60 points to close at 25,502.18,
- The S&P 500 rose 0.4% or +10.05 points to 2,850.40,
The advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 27/17 and 1 flat;
- The mid-day stayed positive with an A/DL of 28/17 and 0 flat;
- The close was positive with an A/DL of 24/19 and 2 flats;
Pre-open to close indications: 6 hits and 2 miss
- BioTime Inc. (BTX) closed down -$0.01 – miss;
- Global Blood Therapeutics (GBT) closed down -$0.55 – hit;
- bluebird bio (BLUE) closed up +$5.15 –hit;
- Alnylam Pharmaceuticals (ALNY) closed up +$1.42 – hit;
- CRISPR Therapeutics (CSP) closed up +$0.90 – trade, hit;
- Editas Medicine (EDIT) closed up +$0.41 – trade, hit;
- Intellia Therapeutics (NTLA) closed up +$1.29 – trade, hit;
- Vericel (VCEL) closed up +$0.05 - miss
Volume (by the numbers) was LOW with some anomalies:
- Volume to the upside = ALNY, AXGN, BLUE and RARE
- Volume to the downside = OSIR,
MY working trend (5 largest) lines:
… The greatest volume to the downside: VSTM, GBT, BMRN, XON and ATHX
… Upside volume was weighted to: MDXG, ALNY, SGMO, BLUE and VCEL
… Leadership ($) to the downside: BMRN (-$1.52), SLDB (-$0.85), GBT (-$0.55), RENE.L (-$0.50) and OSIR (-$0.33)
… Best moves ($) to the upside: BLUE (+$5.15), ONCE (+$3.84), RARE (+$3.64), SAGE (+$1.91) and QURE (+$1.55)
… Flats: AGTC and AST
August, the weekly count - decliners versus gainers – looks at the percentage (%) view from a different angle:
……. look at the differences in decliners:
- Monday’s decliners ranged from -0.31% <MESO -$0.02> to -6.09% <CUR -$0.07> in 19 equities;
- Friday’s decliners ranged from -0.67% <XON -$0.10> to -9.77% <RARE -$7.78> in 37 equities;
- Thursday’s decliners ranged from -0.96% <SLDB -$0.39 > to -15.23% <AXGN -$7.05 > in 16 equities;
- Wednesday’s decliners ranged from -0.48% <BCLI -$0.02 > to -6.84% <ADRO -$0.40 > in 23 equities;
Versus
… Look at the percentage’s (%) and spreads …
- Monday’s gainers ranged from +0.07% <IONS +$0.03 > to +6.25% <MDXG +$0.26 > in 24 equities;
- Friday’s gainers ranged from +1.26% <HSGX +$0.03 > to +6.64% <GBT +$2.90 > in 4 equities;
- Thursday’s gainers ranged from +0.27% <EDIT +$0.07 > to +9.25% <FATE +$0.89 > in 27 equities;
- Wednesday’s gainers ranged from +0.23% <FIXX +$0.04> to +7.89% < FATE +$0.70> in 21 equities;
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market:
- Monday traded at 11.27, down -3.18%
- Friday traded at 11.64, down -4.51%
- Thursday traded at 12.21, up +12.15%
- Wednesday traded at 13.15, up +2.49%
The iShares NASDAQ Biotechnology (IBB) closed:
- Monday was down -0.20%
- Friday was down -0.75%
- Thursday was up +0.75%
- Wednesday was up +0.58%
August sessions:
- Monday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;
- Friday closed NEGATIVE with 37 decliners, 4 advancers and 4 flat;
- Thursday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;
- Wednesday (8/1) closed NEGATIVE with 23 decliners, 21 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.
