November 28, 2018 6:07pm
These same traders can are also very fickle as their purchasing habits are based on emotion, not sound investment strategies.
As I had stated in the pre-open, “Those sector equities that got “whacked’ (Tuesday) on the knuckles, will today get a “pat on the head!”
There is no breadline for share pricing and fact based intelligence!
Some have stated, “I am the “weatherman” of the sector; forecasting and presenting conditions of the sector in a given period.”
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether market reaction to recent events is temporary and short-lived, or if this is a continuation of a more fundamental correction.
- The Dow closed UP +617.70 or +2.50% to 25,366.43
- The S&P closed UP +61.61 points or +2.30% to 2,743.78
- The NASDAQ was UP +208.89 points or +2.95% to 7,291.59
From the pre-open newsletter: “in the green yet, many are afraid of this market. If the sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood). “
The advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 27/17 and 1 flat;
- The first hour was negative with an A/DL of 17/27 and 1 flat
- The mid-day was positive with an A/DL of 35/8 and 2 flats
- The close was positive with an A/DL of 35/9 and 1 flat;
Daily sector metrics:
… Greatest volume to the downside: MDXG, BLUE, BTX, OMVO and AST
… Upside volume was weighted to: XON, VSTM, SGMO, HSGX and
… Weakness ($) to the downside: BLUE (-$0.91), RGNX (-$0.76), MDXG (-$0.16), CLBS (-$0.08) and BTX (-$0.05)
… Best moves ($) to the upside … SAGE (+$6.62), IONS (+$2.52), BMRN (+$2.24), EDIT (+$1.95) and RARE (+$1.76)
The iShares NASDAQ Biotechnology (IBB) closed:
- Wednesday was up +2.71% after indicating a POSITIVE +0.66% in the pre-market;
- Tuesday was down -0.3% after NOT indicating in the pre-market;
- Monday was up +1.7% after NOT indicating in the pre-market;
- Friday was up +0.40% after NOT indicating in the pre-market;
- Thursday was a holiday;
- Last Wednesday was up +0.61% after indicating a POSITIVE +0.02% UPSIDE in the pre-market;
I do NOT trust these alternating sessions of low volume moves!
The key to today’s upside moves were, “"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.”
“The comments were viewed by investors as a retreat from his stance in early October when he had said that the central bank “may go past neutral, but we’re a long way from neutral at this point, probably <MarketWatch>”
There is also TOO MUCH risk of clinical data i.e. results of reliable endpoints in the sector!
I am STILL of the mind … “There’s a difference between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules. After gains, there’s pain; followed by progressions or was it regressions?”
SO, “Skim if you can trim, buy if it will fly and sell if compelled!”
Sector equities rocketed higher as the NASDAQ jumped +2.95% posting its best day since October 25th.
The downsiders were slim (10 out of 45 with 1 flat) led by MDXG (-$0.16), BTX (-$0.05) and CLBS (-$0.08).
Upsiders sector equities jumped on extremely LOW volume on Wednesday as the leaders were SAGE (+$6.62), IONS (+$2.52 and BMRN (+$2.24)) as volatility weighed heavily after Tuesday’s sector decline.
An off-the-cuff reading:
BioTime (NYSEMKT: BTX) closed down -$0.05 (-3.05%) to $1.59 after announcing on registration statement on Form 10, including the information statement relating to the distribution that was previously prepared and filed by AgeX Therapeutics, Inc. was declared effective by the SEC on November 27, 2018, and that BioTime will proceed with the distribution of approximately 12.7 million AgeX shares owned by BTX on a pro rata basis, to eligible BTX shareholders beginning at 5:00pm ET today. Eligible BioTime shareholders are entitled under the distribution to receive one share of AgeX common stock for every 10 shares of BioTime common stock held as of the record date of November 16, 2018.
The CRISPRS – CRSP +$1.30, EDIT +$1.95 and NTLA +$1.11 re-surged after yesterday’s shuffled to the downside on news of a Chines scientist …
Global Blood Therapeutics (GBT) popped back +$0.74 to $32.80 after Tuesday’s -$1.75 decline and Monday’s -$0.84 to $33.81 after Friday’s up +$0.55 – HOLD and wait for a rebound – RIGHT AGAIN;
MiMedx (MDXG closed down again -$0.16 after Tuesday’s -$0.17 after Monday’s -$0.16 and its fellow (past) criminal Osiris (OSIR) closed up +$0.44 after Tuesday’s +$0.66 and Monday’s +$0.15 with another “new” President and CEO. One question is Vericel (VCEL) is jumping +$1.09 after closing Tuesday) down -$1.73 after Monday’s +$2.12, Friday’s +$0.15 and last Wednesday’s +$0.04.
Verastem (VSTM) closed down again -$0.16 after Monday’s -$0.13 and Friday’s barely bouncing +$0.01, Wednesday’s +$0.12 to $5.16 post taking a hits with the previous Tuesday’s-$0.15 or -2.89%. Oversold spread its share pricing wings – but, is there a management credibility issue?
Tonight’s percentage (%) indicators:
- Review the range of the 34 upside from +0.14% (ALNY) to +8.61% (FIXX) while the 9 downside ranged from -0.60% (CUR) to -5.61% (MDXG) with a 1 flat close (RENE.L).
- 6 out of 34 upside had higher (than the 3 month average) volume
- 4 out of 10 downside experienced greater volume (than the 3 month average).
Tuesday closed POSITIVE with 10 decliners, 34 advancers and 1 flat;
Tuesday closed NEGATIVE with 37 decliners, 7 advancers and 1 flat;
Monday closed POSITIVE with 18 decliners, 25 advancers and 2 flat;
Friday’s closed POSITIVE with 17 decliners, 27 advancers and 1 flat;
Thursday was a holiday
Wednesday closed POSITIVE with 8 decliners, 37 advancers and 0 flat;
Tuesday closed NEGATIVE with 29 decliners, 14 advancers and 2 flat;
Monday closed NEGATIVE with 37 decliners, 7 advancers and 1 flat;
Friday closed POSITIVE with 14 decliners, 28 advancers and 3 flat;
Thursday closed POSITIVE with 12 decliners, 33 advancers and 0 flat;
Wednesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;
Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flats;
Monday closed NEGATIVE with 40 decliners, 4 advancers and 1 flat;
Friday closed NEGATIVE with 39 decliners, 6 advancers and 0 flat;
Thursday closed NEGATIVE with 26 decliners, 19 advancers and 1 flat;
Wednesday closed POSITIVE with 12 decliners, 32 advancers and 1 flat;
Tuesday closed NEGATIVE with 22 decliners, 21 advancers and 2 flats;
Monday closed NEGATIVE with 35 decliners, 7 advancers and 3 flats;
Friday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
Thursday (11/1) closed POSITIVE with 3 decliners, 42 advancers and 0 flat
- In 23 sessions in October – there were 17 negative closes and 6 positive closes
- 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.