October 15, 2018 6:09pm

Sector equities fell as indexes failed to bounce-back from last week's collapse as the oversold are still trying to find bottoms

Pre-open indications: 2 HITs and 0 MISS

 

The sector is being driven by the same theme - until we get some optimism, the path of least resistance is lower. 

RMi puts the facts into evidence for the metrics to speak; my motto, “Never leave an investor uninformed”! 


A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

Daily analytics and metrics:

  • The Dow closed -89.44 points lower or -00.35% at 25,250.55
  • The S&P 500 dipped -16.34 points or -0.59% to 2,750.79
  • The NASDAQ dropped -66.15 points or -0.88% to close at 7,430.74.

 

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 was negative with an A/DL of 17/26 and 2 flat3;
  • The close was negative with an A/DL of 17/26 and 2 flats;

 

Pre-open indications: 2 HIT and 0 MISS

  • BioLife Solutions (BLFS) closed down -$0.60 – hit;
  • Vericel (VCEL) closed down -$1.01 – hit;

 

Five (5) key metrics: 

… The greatest volume to the downside:  CRSP, SGMO, XON, RARE and GBT

… Upside volume was weighted to:  HSGX, VSTM, MDXG, IONS and ATHX

… Leadership ($) to the downside: SAGE (-$4.57), RARE (-$2.95), ALNY (-$1.94), SLDB (-$1.85) and CRSP (-$1.80)

… Best moves ($) to the upside:  AXGN (+$0.60), ONCE (+$0.45), ADRO (+$0.31), VSTM (+$0.30) and OSIR (+$0.27)

… The iShares NASDAQ Biotechnology (IBB) closed:

  • Monday was down -1.04% after indicating a NEGATIVE -0.79% in the pre-market;
  • Friday was up +1.99 % after indicating a POSITIVE +1.49% in the pre-market;
  • Thursday was down -2% after indicating a NEGATIVE -0.96% in the pre-market;
  • Wednesday was down -3.32% after NOT indicating in the pre-market;
  • Tuesday was down -0.45% after indicating a NEGATIVE -0.04% in the pre-market;
  • Last Monday was down -0.76% after NOT indicating in the pre-market;

 

Henry’omics:

The impulse of caution is on MY fingertips on any BUY or SELL pulls; the sector turbulence is FAR from over.

ONE issue is which BOTTOM can be trusted before investors can even THINK about pricing SUSTAINABILITY!

The second issue is – EXPECTATION for Q3 LPS (loss-per-share) are HIGH.

Thus … there are plenty of oversold stocks and COMPLACENT sentiment is on the rise but the sector has YET to deteriorate to a point where the current trend turns into an indicator to BUY.

 

Of the 45 companies covered on Monday; 26 downside equities finished in a range of -0.06% (BMRN) to -7.63% (VCEL) while 17 upside equities oscillated from +0.14% (MESO) to +11.43% (HSGX) with a 2 flat close (BTX and RENE.L).

Volume has been increasing … look at the depth – 5 out of 17 of the upside had higher (than the 3 month average) volume while the downside spiked with 9 having greater volume (than the 3 month average) out of 26.

 

From the pre-open newsletter: “there’s a share price for everything. The question is what’s sustainable as Newton’s “Law of Gravity” stays relevant? High “flyers” are more than suspect, especially those with sky-high 52 week changes!”

 

October sessions:

Monday closed NEGATIVE with 26 decliners, 17 advancers and 2 flats;

Friday closed POSITIVE with 9 decliners, 35 advancers and 1 flat;

Thursday closed NEGATIVE with 38 decliners, 7 advancers and 0 flat;

Wednesday closed NEGATIVE with 42 decliners, 2 advancers and 1 flat;

Tuesday closed NEGATIVE with 23 decliners, 18 advancers and 4 flats;

Monday closed NEGATIVE with 34 decliners, 10 advancers and 1 flat;

Friday closed NEGATIVE with 26 decliners, 17 advancers and 2 flat;

Thursday closed NEGATIVE with 35 decliners, 8 advancers and 2 flat;

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

Tuesday closed NEGATIVE with 32 decliners, 12 advancers and 1 flat

Monday (10/1) closed NEGATIVE with 33 decliners, 13 advancers and 1 flat;

  • In 19 sessions in September – there were 10 negative closes and 9 positive close;
  • In 21 August sessions – 6 had negative and 15 had positive closes

 

 

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.