December 19, 2018 5:50pm

Up at open, up at mid-day and slammed to the mat after Fed “call” to close severely to the downside as the NASDAQ (-2.17) and IBB (-2.14%) descent to another abyss

“It ain’t over till it’s over”, the late, great Yogi Berra used to say, “This one sure ain’t over”!

 

Pre-open indications: 3 HITs and 4 MISS

 

Out and about: Biostage (BSTG) dives -$0.77 or -26.83% to $2.10 as weak cash position declines, payables and liabilities escalate as questions rise on their ability to raise cash

 

Investors should be reading about today’s final “figures” – be a subscriber and be ready for tomorrow’s session! I still believe today’s tin could be next month’s gold!


This week’s trend is an admission that the sector is without any pricing sustainability which suppresses a value directional

 

Daily analytics:

  • The Dow closed down -351.98 points or -1.49% to 23,323.66
  • The S&P closed down -39.20 points or -1.54% to 2,506.96
  • The NASDAQ was down -147.08points or -2.17% to 6,636.83

 

Henry’omics:

Sector equities SANK in a deep and dak session after the Fed raised its benchmark overnight lending rate for the fourth time this year.

WHAT more can one say … the Dow (down -8%) and S&P 500 (down -9%) are on track for their worst December performance since 1931.

 

From the pre-open newsletter: “this market is a trip and we make drugs – never take your own! The sector is grossly oversold … many have been dumped, when will they be pumped? Will a Fed hike be put to bed or make us more fed-up with this market?”

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 36/7 and 2 flat;
  • The mid-day was positive with an A/DL of 28/17 and 0 flat;
  • The close was negative with an A/DL of 8/36 and 1 flat;

 

Pre-open indications: 3 HIT and 4 MISS

Applied Genetic Technologies Corporation (AGTC) closed down again -$0.07 – miss;

  • AGTC still has $105 M in cash and there is $6.81 in total cash per share.  BIIB has already paid out around $146 million during the collaboration and will contribute funding through to March 8 of next year, when the contract comes to an end

BioLife Solutions (BLFS) closed down -$0.11 – miss;

CRISPER Therapeutics (CRSP) closed down again -$0.89 – hit, I’d said trade it;

Editas medicine (EDIT) closed down again -$1.43 – hit, I’d said trade it;

Intellia (NTLA) closed down again -$1.15 – hit, I’d said trade it;

Regenxbio (RGNX) closed down -$0.98 – miss;

Vericel (VCEL) closed down -$0.98 – miss;

 

Daily sector metrics: weakness

… Greatest volume to the downside:  VSTM, AXGN, XON, SGMO and ATHX

… Upside volume was weighted to:  ADRO, HSGX, MDXG, QURE and ONVO

… Weakness ($) to the downside:  SAGE (-$5.62), ALNY (-$4.16), BMRN (-$3.70), BLUE (-$2.30) and GBT (-$2.27)

… Best moves ($) to the upside:  SLDB (+$1.00), QURE (+$0.66), ADRO (+$0.49), MESO (+$0.11) and MDXG (+$0.09)

… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:

  • Wednesday was down -2.14% after indicating a NEGATIVE  -0.1% in the pre-market;
  • Tuesday was down –1.94% after indicating a POSITIVE +0.7% in the pre-market;
  • 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;
  • Last Wednesday was up +1.26% after indicating POSITIVE +1.79% in the pre-market;

 

Tonight’s percentage (%) indicators: weakness …

  • Review the range of the 9 upside from +0.66% (HSGX) to +19.84% (ADRO) while the 34 downside ranged from -0.24% (CLBS) to -26.83% (BSTG) with 2 flat close (ADVM and RENE.L).

Volume stat:  Increasing …

  • 3 out of the 9 upside had higher (than the 3 month average) volume
  • 19 out of the 34 downside experienced greater volume (than the 3 month average).

 

December sessions:

Wednesday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;

Tuesday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

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.