Indication intelligence, analysis and sector perception

RegMed’s close: gains evaporate as fear and de-risking return while options expire ahead of the weekend?

October 16, 2015 5:32pm

“Veniremus, emimus, vendidit” – the new mantra, we came, we bought, we sold!

After a very big day yesterday I think that was an exhaustion of sentiment and a lot of short covering. Subscription required: http://www.regmedinvestors.com/user/register

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U.S. stocks closed higher Friday for a third week of gains while the stem, cell and gene therapy RegMed sector bit the dust!

The NASDAQ closed UP +16.59 or +0.34% to 4,886.69 and the DOW closed UP +74.22 or +0.43% to 17,215.97.

Henry’omics:

After a very big day yesterday, my belief on the upswing was … questionable; was there an exhaustion of short-term sentiment, a lot of the short covering amid options expirations or just being afraid of being long ahead of the weekend?

Back to my pet peeve … “high-frequency trading accounted for 49% of October's daily trading volume of about 7.2 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61% of 9.8 billion of average daily shares traded were executed by high-frequency traders”.

The stem, cell, gene therapy and regenerative medicine (SCGT&RM) sector opened to the upside quickly moving to the downside by the mid-day (12:30 pm) and closing to the downside as the indexes and ETFs slipped:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN -0.44 or -0.14% after leaping Thursday +4.4% having 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 NASDAQ Biotechnology index (NBI) closed DOWN -3.36 or -0.10% following Thursday’s advance of +138.63 or +4.39% on Thursday following Wednesday’s advance of +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 Russell 2000 (IWM) closed DOWN -0.15 or -0.13% on Friday after Thursday’s +2.70 or +2.39% following Wednesday’s decline of -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 DOWN -0.26 or $0.39% after Thursday’s +4.49 or +7.26% following Wednesday’s advance of +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 22/18 and 5 flats spiking lower to a negative A/DL at the mid-day of 11/29 and 3 flats and closed with a negative A/DL of 12/30 and 1 flat.

Volume was a lot more than moderate to high.

My fear gauge of fear - the CBOE Volatility Index (VIX) traded Friday near 16 after Thursday near 16 following Wednesday’s below 18 following Tuesday’s above 17.5 after Monday’s above 15.

Dosing the sector – 43 Patients:

Open: POSITIVE with 18 decliners, 22 advancers and 3 flats;

Mid-day (12:30 pm): NEGATIVE with 29 decliners, 11 advancers and 3 flats;

Closing bell: NEGATIVE with 30 decliners, 12 advancers and 1 flat

Friday’s trading indications: 3 hit/ 3 miss:

Capricor (CAPR) closed UP +$0.05. Be ready for a pending offering - miss;
Juno therapeutics (JUNO) closed DOWN – hit;
Kite Pharma (KITE) closed UP – hit;
MiMedx (MDXG) closed DOWN – miss;
Osiris (OSIR) closed UP – hit;
Spark Therapeutics (ONCE) closed DOWN – miss;

Who is UP – highest 5:

Kite Pharma (KITE) closed up +$0.67 to $65.07;
Mesoblast ADR (USOTC: MBLTY) +$0.61 to $12.72;
VistaGen (VSTA) +$0.to at $8.00;
Aduro biotech (ADRO) +$0.34 to $22.90;
Spark Therapeutics (ONCE) closed up +$0.31 to $52.81;

Who was down?

Northwest Bio (NWBO) closed down -$1.74 to $4.19;
uniQure (QURE) -$0.89 to $19.27;
Juno Therapeutics (JUNO) -$0.62 to $50.21;
Intrexon (XON) -$0.41 to $33.07;
Regenxbio (RGNX) closed down -$0.32 to $18.55

Who is flat?

ReNeuron (RENE.L) at $4.10;

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.

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My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The information included above as well as individual companies and/or securities mentioned should be construed as guidance in 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 qualitative 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.