December 18, 2015 7:34pm

While selling was not worrisome, buying sent a message of some fundamental strength.

The time for increasing cash positions is now … by investors and companies in different ways

Funny, how a number of companies have run to the ATM market players this week.

Subscribe or take your losses without complaining …

 

 

 

I say what others won't, so you can do what others can't!

 

 

U.S. stocks closed sharply lower Friday as investors weighed low oil and economic data in the aftermath of the Federal Reserve's rate hike Wednesday. Options expiration also contributed to volatility

The NASDAQ closed DOWN -79.47 or -1.59% to 4,923.08 and the DOW closed DOWN -367.29 or -2.10% to 17,128.55.

 

 

Henry’omics:

The stem, cell and gene therapy RegMed (SCGT&RM) sector opened positive, stayed positive to the mid-day  and closed positive (of 43 covered companies).

  • The NASDAQ composite declined about 1.6% to close below the psychologically key 5,000 level.

Options expiration typically involves more volume but you actually saw more of the selling on Wednesday and Thursday ahead of the expiration. Oftentimes you will have a little volatility (the day of) but not always more selling.

  • We could just about dismiss the effects of quadruple witching on the stem, cell and gene therapy RegMed (SCGT&RM) sector. It was projected to affect “our” universe’s volatility and volume. But, the market did it all leaving the SCGT&RM sector relatively unscratched as compared to the macro market!

My fear gauge is UP – the CBOE Volatility Index (VIX) traded Friday above 20 following Thursday’s near 17.5 after Wednesday’s above 17.5 following Tuesday’s near 20.5 from Monday’s below 23 after briefly topping 26!

 

 

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

  • The opening bell rang positive with an A/DL of 24/17 and 2 flats staying positive at the mid-day with an A/DL of 27/14 and 2 flats to close positive on Thursday’s session with an A/DL of 21/17 and 5 flats.

 

 

My pet peeve:

High-frequency trading accounted for 49% of December's daily trading volume of about 7.85 billion shares, according to TABB Group.

  • During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.

 

 

Riding the indexes and ETFs roller-coaster:

  • The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Friday -0.63 or –0.19% after Thursday’s decline of  -5.28 or -1.56% after Wednesday’s advance of  +7.41 or +2.25% after Tuesday’s +9.15 or +2.85% following Monday’s advance of +0.95 or +0.30%;
  • The NASDAQ Biotechnology index (NBI) closed DOWN on Friday -22.40 or -0.65% following Thursday’s -59.21 or -1,68% after Wednesday’s +79.79 or +2.31% after Tuesday’s +95.02 or +2.83 % following Monday’s advance of +8.30 or +0.25%;
  • The Russell 2000 (IWM) closed DOWN on Friday -1.73 or -1.53% following Thursday’s decline of  -1.22 or -1.07% after Wednesday’s advance of +1.72 or +1.53% after Tuesday’s advance of +1.60 or +1.44% following Monday’s decline of -0.80 or -0.71%;
  • The SPDR SD&P Biotech ETF (XBI) closed UP on Friday +0.38 or +0.55% after Thursday’s decline of -0.85 or -1.22% after Wednesday’s advance of +2.93 or +4.39% after Tuesday’s advance of +1.86 or +2.86% following Monday’s decline of -0.73 or -1.11%

 

 

Dosing the sector – what a day for the 43 Patients:

  • Opening bell: POSITIVE with 17 decliners, 24 advancers and 2 flats;
  • Mid-day: POSITIVE with 14 decliners, 27 advancers and 2 flats;
  • Closing bell: POSITIVE with 17 decliners, 21 advancers and 5 flats

 

 

Who was UP – top 5:

  • VistaGen (VATA) closed +$0.92 to $6.31;
  • MiMedx (MDXG) +$0.62 to $9.54;
  • Mesoblast (MESO) +$0.50 to $6.20;
  • Bellicum (BLCM) +$0.40 to $19.52;
  • Vericel (VCEL) closed up +$0.38 to $2.30

 

 

Who closed down – top 6:

  • Aduro Biotech (ADRO) closed down -$2.15 to $29.59;
  • uniQure (QURE)-$1.40 to $16.00;
  • Spark Therapeutics (ONCE) -$1.39 to $44.13;
  • Kite Pharma (KITE) -$0.84 to $63.03;
  • Regenxbio (RGNX) closed down -$0.81 to $17.80

 

 

Flat:

  • Athersys (ATHX) at $1.03;
  • Brainstorm (BCLI) at $2.73;
  • ImmunoCellular (NYSEMKT: IMUC) at $0.3785;
  • Ocata Therapeutics (OCAT) at $8.49;
  • Fate Therapeutics (FATE) at $3.55;

 

 

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.