January 9, 2019 5:44pm
As I had stated, “sit on the sidelines until the first hour and even then … I’d be cautious!”
The session as the sector opened positive, jumped and then retrenched to the opening Advance/Decline (A/DL) position
Low volume is not a confidence builder; it’s a sign of doldrums seeping into the sector
RMi outlines preludes and aftermaths defining the daily dose of facts, investment thesis and objectivity!
The 6 W’s: Who, what, where, when, why and what of it …
- The Dow closed up +93.95 points or +0.39% to 23,881.40
- The S&P closed up +10.53 points or +0.41% to 2,584.95
- The NASDAQ was up +60.08 points or +0.87% to 6,957.08
Sector equities rose with low volume and minimal gains in another volatile session on Wednesday.
I also used an analogy this a.m.; remember the movie, “Every Which Way but Loose” a 1978 comedy stars Clint Eastwood in an uncharacteristic and offbeat comedy role as Philo Beddoe, a trucker and brawler roaming the American West in search of a lost love while accompanied by his brother/manager, Orville, and his pet orangutan, Clyde.
What am I saying in this analogy, we cross a motley assortment of sector and market responses, including fear and uncertainty with algorithms, dark pools, and alternating sentiment undermining investment but, the orangutan in the room is confidence motivated by trading and not investment? It’s all about motivations, and one component is news – and I don’t read or hear much (even solid rumors) at all”
The advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 26/15 and 4 flats;
- The mid-day was positive with an A/DL of 34/11 and 0 flat;
- The close was positive with an A/DL of 26/18 and 1 flat;
Leading gainers: CRSP, RGNX, RARE, EDIT, and BOLD
Leading losers: SAGE, BLUE, SGMO, BMRN and ALNY
Tonight’s percentage (%) indicators:
- Review the range of the 26 upside from +0.02% (IONS) to +11% (BSTG +$0.22) while the 18 downside ranged from -0.32% (VYGR) to -14.21% (SGMO) with 1 flat close (ADVM).
- 8 out of the 26 upside had higher (than the 3 month average) volume
- 5 out of the 18 downside experienced greater volume (than the 3 month average)
From the pre-open newsletter: “a late session and weak rebound yesterday … Could shed light of fragility of the sector; I’d be selling into any strength although cautiously optimistic - my confidence is fading.”
The “bully pulpit”:
HSGX (was down another -2.54% (-$0.0049) after yesterday’s -$10.15% or -$0.022) continues to decline after a $0.66 offering – which I had called a “sucker’s bet” when financing was announced – wasn’t wrong;
The CRISPERS felt the oversold pain to gain: CRSP (closed up +$2.72 after yesterdays-$0.21), EDIT (closed up again +$0.95 after yesterday’s +$0.52) and NTLA (closed up +$0.39 after yesterday’s -$0.47) have joined (once again) the carousel of share pricing
AGTC saw some daylight (+$0.09 to $3.05)
ATHX (-$0.07) dissipated most of Monday and Tuesday’s gains – remember the Helios “option” is a possibility and stretching-out the negativity …
BSTG (+$0.22 or +11% to $2.22) was up +$0.29 with 506 shares traded an hour after the open and slipped as the session progressed. Maybe … someday, they will get REAL shareholders other than day traders. What has management been doing about their share pricing – NOTHING, not a word. Problems with the IND – you betcha?
PSTI pumped some upside +$0.07 or 5.66% on news: reported a successful one-year follow up of a compassionate use treatment in a Buerger’s disease patient treated with PLX-PAD. The thirty-six years old patient, who was diagnosed with Buerger’s disease approximately four years ago, displayed painful, non-healing ulcers on his foot. Available medical interventions, including revascularization procedures, were unsuccessful in restoring sufficient blood flow to the affected limb and the patient progressed to a pre-amputation stage. Following his physician’s request and regulatory approval, patient was given a compassionate use treatment of PLX-PAD cells, consisting of two administrations to the foot and calf, approximately eight weeks apart. Be ready for a DIVE …!
Daily sector metrics:
… Greatest volume to the downside: HSGX, SGMO, SAGE, ADRO and BMRN
… Upside volume was weighted to: MDXG, VSTM, AXGN, CRSP and EDIT
… Weakness ($) to the downside: SAGE (-$9.58), BLUE (-$3.43), SGMO (-$1.82), BMRN (-$1.44) and ALNY (-$0.56)
… Moves ($) to the upside: CRSP (+$2.72), RGNX (+$1.51), RARE (+$1.39), EDIT (+$0.95) and BOLD (+$0.80)
… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:
- Wednesday was up +0.7% after NOT indicating;
- Tuesday was up +0.72% after indicating a POSITIVE +0.48% upside in the pre-market;
- Monday was up +3.35% after indicating a POSITIVE +0.49% upside in the pre-market;
- Friday was up +5.03% after indicating a POSITIVE +1.29% upside in the pre-market;
- Thursday was up +0.14% after indicating a POSITIVE +1.1% upside in the pre-market;
- Last Wednesday was up +0.15% after indicating a NEGATIVE -1.7% downside in the pre-market;
Wednesday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
Tuesday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
Monday closed POSITIVE with 7 decliners, 38 advancers and 0 flats;
Friday closed POSITIVE with 5 decliners, 40 advancers and 0 flats;
Thursday closed NEGATIVE with 32 decliners, 11 advancers and 2 flats;
Wednesday (1/3/19) closed POSITIVE with 11 decliners, 34 advancers and 0 flats;
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.