Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: the rising of resistance

August 28, 2018 6:35pm

Resistance is a pre-determined level of an equity’s price which it is thought that the price will tend to reverse.

Presenting alternative hypotheses clarifies material facts and evidence available to investors. “Devil’s Advocacy” also provides greater confidence that the current sector outlook will hold-up to close scrutiny!

When is it wrong to be right so often? Your portfolio should be profiting from RMi’s analysis!

Henry’omics:

The market's slight gains and the sector’s movement on Tuesday came a day after a rally propelled the S&P 500 and NASDAQ to record highs.

Remember, I have been saying – every time I see or hear about a new high – I say – BYE!

Trading is running the table, NOT investing as many sit-out the full moon and tides; yet stocks are up but, slowly eroding the Advance/Decline lines (A/DL).

Review the month’s closes - this week, the final week of August as the Advance/Decline line (A/DL) is slipping as the week evolves …

The S&P 500 and the VIX — the so-called fear index — tend to trend in opposite directions since investors have less to worry about when the stock market rallies, and vice versa. However, in recent days, this well-choreographed relationship has been thrown off balance, with the VIX hovering significantly above its 52-week lows even as the large-cap index continues to carve out new records.

The VIX’s low reading indicates a calm market while a higher number suggests elevated uncertainty.

This divergence ... DESERVES ... closer scrutiny given that such disconnects have previously heralded tough times ahead for stocks!

From the pre-open newsletter: “What am I doing today – sitting and watching!”

As I stated, “I’m staying with the herd mentality, until late Tuesday, early Wednesday, definitely by Thursday and unquestionably by Friday.”

Of the 45 companies covered on Tuesday; 15 downside equities finished in a range of -0.01% (RARE) to -15.88% (IONS) while the 28 upside equities oscillated from +0.25% (BCLI) to +27.15% (KOOL) with 2 flat closes (CUR and HSGX).

Daily analytics and metrics:

The Dow closed up +14.38 points or +0.06% to 26,064.02
The S&P closed up +0.78 or +0.03% to 2,897.52
The NASDAQ closed up +12.14 or +0.15% to 8,030.04

The advance/decline line scenario of 45 covered companies:

The open was positive with an A/DL of 26/13 and 6 flats;
The mid-day continued positive with an A/DL of 25/20 and 0 flat;
The close was positive with an A/DL of 28/15 and 2 flats;

The five (5) largest trend lines:

… The greatest volume to the downside: IONS, VSTM, BMRN, GBT and ATHX

… Upside volume was weighted to: ALNY, MDXG, SGMO, KOOL and ONVO

… Leadership ($) to the downside: IONS (-$8.53), BMRN (-$1.11), SLDB (-$0.70), ONCE (-$0.41) and VYGR (-$0.36)

… Best moves ($) to the upside: ALNY (+$4.96), BLUE (+$3.75), CRSP (+$2.21), AXGN (+$1.55), QURE (+$1.45))

The iShares NASDAQ Biotechnology (IBB) closed:

Tuesday was up +0.49%
Monday was up +1.75%;
Friday was up +0.17 %
Thursday was down -0.58%
Wednesday was up +0.71%
Last Tuesday was up +0.93%

August sessions:

Tuesday closed POSITIVE with 15 decliners, 28 advancers and 2 flats;

Monday closed POSITIVE with 7 decliners, 35 advancers and 3 flats;

Friday closed POSITIVE with 19 decliners, 24 advancers and 2 flats;

Thursday closed NEGATIVE with 26 decliners, 16 advancers and 3 flats;

Wednesday closed POSITIVE with 12 decliners, 32 advancers and 1 flat;

Tuesday closed POSITIVE with 9 decliners, 36 advancers and 0 flat;

Monday closed POSITIVE with 16 decliners, 23 advancers and 6 flat;

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

Thursday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;

Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 3 flat;

Tuesday closed POSITIVE with 13 decliners, 28 advancers and 4 flat;

Monday closed NEGATIVE with 24 decliners, 19 advancers and 2 flat;

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

Thursday closed POSITIVE with 14 decliners, 29 advancers and 2 flat;

Wednesday closed NEGATIVE with 25 decliners, 16 advancers and 4 flat;

Tuesday closed POSITIVE with 14 decliners, 29 advancers and 2 flat;

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.