December 17, 2018 5:23pm
Few equities escaped unscathed with just ten (10) trading sessions left for stocks in 2018
Pre-open indications: 0 HIT and 5 MISS
Out and about: an OPTION is still only a POSSIBILITY as Athersys (ATHX) extends the HEALIOS K.K.’s (Healios) exclusive period to negotiate, then dived -$0.20 or -10.42% to $1.72. Pluristem (PSTI +$0.02 to $0.87) on news of Key Opinion Leader (KOL) breakfast meeting on peripheral artery disease (PAD) – another nada meeting; Brainstorm Cell Therapeutics (BCLI -$0.04 to $3.05) has IND for MS accepted “shimmied” while Sangamo Therapeutics (SGMO -$0.07 to $11.41) on news of 1st patient in the P1/2 clinical trial evaluating SB-FIX, an investigational in vivo genome editing therapy for patients with hemophilia B.
Investors should be reading about today’s final “figures” – be a subscriber and be ready for tomorrow’s session! As I have stated … today’s tin could be tomorrow’s gold!
Opinion extraction, opinion summarization and opinion tracking are three important techniques for understanding sentiment.
As I stated this a.m., “I am worried that the sector is in a dicey spot! In a down trending down, how does a rally gain its forward motion? Sentiment is still based on trading momentum. The sector is also on edge as end-of-year selling … volume rolls-upward!”
Sector equities tanked on Monday, pushing the RegMed sector even lower while the S&P 500 fell to a new low for the year amid growing concerns that the FED's plan to raise interest rates could be too much for the economy and stock market to handle.
The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Depression in 1931, down 7% so far for the month. The S&P 500 is now down more than 4% for the year.
The Cboe Volatility Index —a gauges of market fear — hit 24.51 or +13.31%, its highest level since 12/10/18 and volume for the stock market was heavier than usual.
The Russell 2000 — which tracks the performance of many of the smaller biotech or RegMed companies dropped -20% from its 52-week high.
From the pre-open newsletter: “Who do you call for “share side” assistance? It’s not AAA, try RMi … As the sector and overall stock market tends to consistently rise and fall over the short and near-term with alternating volatility and involuntary momentum contraction.”
Daily analytics and metrics:
- The Dow closed down -507.53 points or -2.11% to 23,592.98
- The S&P closed down -54.01 points or -2.08% to 2,545.94
- The NASDAQ was down -156.93 points or -2.27% to 6,753.73
The advance/decline line scenario of 45 covered companies:
- The open was negative with an A/DL of 6/38 and 1 fl14;
- The mid-day was negative with an A/DL of 38/27 and 4 flats;
- The close was negative with an A/DL of 9/34 and 2 flats;
Pre-open indications: 0 HIT and 5 MISS
- Applied Genetic Technologies Corporation (AGTC) closed down -$0.14 – miss;
- Athersys (ATX) closed down -$0.20 – miss;
- CRISPER Therapeutics (CRSP) closed down -$1.11 – miss;
- Editas medicine (EDIT) closed down -$0.81 – miss;
- Intellia (NTLA) closed down -$0.46 – miss;
Daily sector metrics: weakness
… Greatest volume to the downside: VSTM, ATHX, XON, BTX and SGMO
… Upside volume was weighted to: HSGX, BLUE, BLCM, ONCE and STML
… Weakness ($) to the downside: ALNY (-$2.83), RARE (-$1.58), QURE (-$1.140, CRSP (-$1.14), AXGN (-$1.07)
… Best moves ($) to the upside: BLUE (+$1.18), STML (+$0.38), ONCE (+$0.26), BLCM (+$0.14) and RGNX (+$0.09)
… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:
- Monday was down –1.65% after indicating a POSITIVE +0.12% in the pre-market;
- Friday was down -1.89% after indicating a NEGATIVE -1.05% in the pre-market;
- Thursday was down -1.51% after NOT indicating in the pre-market;
- Wednesday was up +1.26% after indicating POSITIVE +1.79% in the pre-market;
- Tuesday was up +0.3% after NOT indicating in the pre-market;
- Last Monday was up +0.17% after indicating a POSITIVE +0.1% in the pre-market;
Tonight’s percentage (%) indicators:
- Review the range of the 9 upside from +0.20% (RGNX) to +3.81% (BLCM) while the 34 downside ranged from -0.50% (ONVO) to -14.63% (BTX) with 2 flat close (RENE.L and VCEL).
- 6 out of the 9 upside had higher (than the 3 month average) volume
- 14 out of the 34 downside experienced greater volume (than the 3 month average).
Monday closed NEGATIVE with 34 decliners, 9 advancers and 2 flats;
Friday closed NEGATIVE with 30 decliners, 13 advancers and 2 flats;
Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;
Wednesday closed POSITIVE with 8 decliners, 35 advancers and 2 flat;
Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flat;
Monday closed POSITIVE with 18 decliners, 25 advancers and 1 flat;
Friday closed NEGATIVE with 33 decliners, 11 advancers and 1 flat;
Thursday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;
Wednesday markets were closed;
Tuesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;
Monday (12/3) closed POSITIVE with 10 decliners, 32 advancers and 3 flats;
- In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
- In 23 sessions in October – there were 17 negative closes and 6 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.