October 14, 2015 5:52pm

 

The problem is volatility and ultimately the opportunity to make any return

The issue is where and when, there is uncertainty and flux; speculators buy stocks to sell stocks when the appreciation exceeds the cost of the trade. Subscription required: http://www.regmedinvestors.com/user/register

 

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U.S. stocks closed lower Wednesday as investors digested earnings reports and weighed weaker-than-expected data.

The NASDAQ closed DOWN -13.76 or -0.29% to 4,782.85 and the DOW closed DOWN -157.14 or -0.92% to 16.924.75.

 

 

Henry’omics:

  • The stem, cell, gene therapy and regenerative medicine (SCGT&RM) sector opened to the upside – finally and maintained until the mid-day but, slpped to the downside at the close!

 “Our” universe closed NEGATIVE on Tuesday and Monday, POSITIVE on Friday, Thursday and last Wednesday.  Pattern recognition has worked more than I can count in the last few months.

  • Poor sector performance this year <so fa> with the renewed reality that individual company caused sector risks are real.

Many investors are becoming more trading oriented and moving away from “investing techniques” and are now employing trading strategies.

  • Trading a SCGT&RM stock with poor liquidity can make things difficult for an investor and even a trader, but finding a highly liquid ETF can help avoid potential problems.

I still believe pricing movements to correspond to the Advance/Decline Lines (A/DL) overlaid against the closing patterns creates a configuration that intersects with positive/negative news and my reliance on the fear gauge - the CBOE Volatility Index (VIX)!

 

 It’s still all about pricing and it’s coming and going because it alternates by trading interests! 

  • The NASDAQ Biotechnology index (NBI) closed UP on Wednesday +27.72 or +0.89% after Tuesday’s decline of -104.09 or -3.22% following Monday’s advance of +1.99 or +0.06% on Monday;
  • The iShares Nasdaq Biotechnology ETF (IBB) closed UP +2.82 or +0.94% on Wednesday after Tuesday’s decline of -9.78 or -3.17% after Monday eked out a gain of 0.03%. The IBB is more than 25% below its 52-week high;
  • The Russell 2000 (IWM) closed DOWN -1.12 or -0.98% after Tuesday’s decline of -1.60 or -1.38% following Monday’s decline of -0.17 or -0.15%;
  • The SPDR SD&P Biotech ETF (XBI) closed UP on Wednesday +0.69 or +1.13% after Tuesday’s decline of -2.80 or 4.38% following Monday’s decline of -0.79 or -1.22%

 

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector:

  • SCGT & RM equities opened positive with an Advance/Decline line (A/DL) of 33/5 and 4 flats staying in a positive mode with a mid-day of A/DL of 25/16 and 2 flats;
  • The closing bell slipped to a negative A/DL of 17/23 and 3 flat.

Volume was still low to moderate on many but, high on some price movers as the iShares Nasdaq Biotechnology ETF (IBB) rose 0.94%.

  • My fear gauge of fear - the CBOE Volatility Index (VIX) traded Wednesday below 18 following Tuesday’s above 17.5 after Monday’s above 15.

 

 

Dosing the sector – 43 Patients:

  • Open: POSITIVE with 6 decliners, 33 advancers and 4 flats;
  • Mid-day (1 pm) POSITIVE with 16 decliners, 25 advancers and 2 flats;
  • Closing bell: NEGATIVE with 23 decliners, 17 advancers and 3 flat

 

 

Wednesday’s trading indications: 7 hit/ 2 miss:

  • Applied Genetic Technologies (AGTC) closed UP +$0.04 – hit;
  • Capricor (CAPR) closed UP +$0.09, get ready for an offering (!)  – hit;
  • Cellectis ADR (CLLS) closed UP +$0.54 –hit;
  • Fate Therapeutics (FATE) closed DOWN -$0.23 – miss;
  • Harvard Apparatus RM (HART) closed UP +$0.034 – hit;
  • Intrexon (XON) closed UP +$0.95– hit;
  • Kite Pharma (KITE) closed UP – hit;
  • Spark Therapeutics (ONCE) closed UP +$2.86 – miss;
  • Verastem (VSTM) closed UP +$0.03– hit;

 

 

Who is UP – highest 5:

  • Spark Therapeutics (ONCE) closed up +$2.86 to $50.90;
  • Kite Pharma (KITE) +$0.96 to $60.40;
  • Intrexon (XON) +$0.95 to $33.00;
  • Cellectis ADR (CLLS) +$0.41 to $24.08;
  • Sangamo (SGMO) closed up +$0.31 to $5.96

 

 

Who is down - the lowest 5:

  • Juno Therapeutics (JUNO) closed down -$2.18 to $46.39;
  • Bellicum (BLCM) -$0.71 to $13.28;
  • VistaGen (VSTA) -$0.50 to $7.50;
  • MiMedx (MDXG) -$0.49 to $7.95;
  • Fate therapeutics (FATE) closed down -$0.47 to $4.31

 

 

Who is flat?

  • Cesca Therapeutics (KOOL) at $0.61;
  • Pluristem (PSTI) at $1.76;
  • Mesoblast ADR (USOTC: MBLTY) at $12.02;

 

 

All investments are subject to risks. Investors should consider investment objectives. The information included above as well as individual companies and/or securities mentioned should only construed as an indication from any RMi reviews.

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 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.