Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: it ain’t over after another volatile trading session

October 17, 2018 6:09pm

Failed support stimulated additional selling yet added bottom fishing by the close

Pre-open indications: 5 HITs and 3 MISS (2 by pennies)

Out and about: Adverum Biotechnologies (ADVM promoted Leone Patterson to president and CEO. Ms. Patterson has served as an interim president and the CFO title which she will retain until a new candidate is identified.

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 down -91.74 points or -0.36% to 25,706.68
The S&P closed down -0.71 points or -0.03% to 2,809.21
The NASDAQ closed down -2.79 points or -0.04% to7, 642.70

The advance/decline line scenario of 45 covered companies:

The open was negative with an A/DL of 5/38 and 2 flats;
The mid-day was negative with an A/DL of 13/28 and 4 flats;
The close was negative with an A/DL of 19/25 and 1 flat;

Pre-open indications:

Aduro Biotechnologies (ADRO) closed down -$0.58 – hit;
bluebird bio (BLUE) closed down -$3.74 – miss;
BioLife Solutions (BLFS) closed up +$0.09 – miss;
Biostage (BSTG) closed flat at $0.00 – hit;
CRISPR Therapeutics (CRSP) closed up +$0.14 – hit;
Editas Medicine (EDIT) closed up +$0.50 – hit;
Intellia Therapeutics (NTLA) closed down -$0.05 – hit;
Vericel (VCEL) closed up +$0.05 – miss;

Five (5) key metrics:

… The greatest volume to the downside: VSTM, MDXG, SGMO, XON and ADVM

… Upside volume was weighted to: HSGX, BMRN, GBT, BOLD and CRSP

… Leadership ($) to the downside: BLUE (-$3.74), SAGE (-$3.04), ALNY (-$1.65), ADRO (-$0.56) and RGNX (-$0.37)

… Best moves ($) to the upside: EDIT (+$0.50), RENE.L (+$0.50), AXGN (+$0.44), GBT (+$0.41) and QURE (+$0.20)

… The iShares NASDAQ Biotechnology (IBB) closed:

Wednesday was down -0.05% after indicating a NEGATIVE -0.11% in the pre-market;
Tuesday was up +4.23% after indicating a POSITIVE +0.85% in the pre-market;
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;
Last Wednesday was down -3.32% after NOT indicating in the pre-market;

Henry’omics:

The sector gyrated through the session, trying to find a bottom! Mid-afternoon buying picked-up with bottom-fishing fermenting a higher upside versus the morning’s decline.

The sector opening broke out of the gate with a major slide with an Advance/Decline Line (A/DL) of 5/38 and 2 flat closing with an AS/DL of 19/25 and 1 flat.

I stated in the a.m. pre-open post, “NOT to lose sight of the upcoming session – sector stocks could be down as share pricing diminishes; I’m still stressing a defensive mode adding little if any BUYs to any offensive moves.”

Review the range of the 19 upside +$0.50 (EDIT) from +$0.01 (PSTI and VYGR) while the 25 downside ranges from -$0.01 (MDXG, ONVO and CLBS) to -$3.74 (BLUE)

The indexes today, traded in a wide range before the minutes were released as investors grappled with weakness.

REMEMBER I had stated … “volatility has provided a powerful lesson on the true meaning of risk tolerance!”

What investors are REALY feeling … FATIQUE!

Interesting viewpoint, veteran trader Art Cashin said” the sell-off is 'a bit of a calendar item. The market sell-off is partially seasonal, and partially a case of weakness driving further weakness, Wall Street veteran Art Cashin says. The drop is 80 % technical, and he attributes the other 20% of the sell-off to "foreign things," like currencies and trade war fear.” <CNBC>

Cashin also said. "The selling brought in a bit of a domino effect, where the weakness led to further weakness.”

Of the 45 companies covered on Wednesday; 25 downside equities finished in a range of -0.06% (ONCE) to -8.45% (ADRO) while 19 upside equities oscillated from +0.06% (BMRN) to +8.14% (HSGX) with a 1 flat close (BSTG).

Interesting stat: Volume has been DECREASING … look at the depth – 7 out of 19 of the upside had higher (than the 3 month average) volume while the downside experienced 2 having greater volume (than the 3 month average) out of 25.

From the pre-open newsletter: “sector timing can be a short-term portfolio cash builder. We could be seeing some siphoning of upside value.”

October sessions:

Wednesday closed NEGATIVE with 25 decliners, 19 advancers and 1 flat;

Tuesday closed POSITIVE with 4 decliners, 39 advancers and 2 flats;

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.

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Insight, foresight and recommendation

What's Happening Today

1 hour 42 min ago
RegMed Investors’ (RMi) pre-open: market, market and the sector pullbacks are driven by Israel retaliation against Iran tempered expectations for a rate cut

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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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.