January 8, 2016 6:05pm

A terrible week for the sector but, it started a lot worse so, who wants to go long over this weekend

The reason so many investors fail is because they make poor decisions when markets rise and fall!  Do you know why, subscribe for access or take your losses without complaining …

 

I say what others won't, so you can do what others can't!  Haven’t been wrong -  the week fluctuated between gains and losses

 

 

U.S. stocks closed lower Friday as concerns about China that weighed throughout the first trading week of the year persisted into the close. The major indexes ended the week with losses of nearly 6% or more, one of their worst starts to a year in history.

 

With about 15 minutes to the close, the Dow fell more than 150 points. The index briefly gained more than 100 points in opening trade. Earlier, the major averages fluctuated between positive and negative territory as they attempted to hold opening gains.

The S&P 500 traded more than 1% lower, holding more than 10% from its 52-week intraday high, joining the Dow and Nasdaq composite in correction territory in intraday trade.

The NASDAQ closed DOWN -45.79 or -0.98% to 4,643.63 and the DOW closed DOWN -167.65 or -1.02% to 16,346.45.

 

 

Henry’omics:

U.S. stocks relinquished an early advance Friday and finished deep in the red, posting their worst opening week in history.

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

But the strong headline of a “moneyed” collaboration from Athersys (ATHX) off-set the failures of Caladrius Biosciences (CLBS); I believe gave the stem, cell and gene therapy RegMed sector a boost from the current uncertainty, given weakness in “our” universe.

  • No one wants to admit it, but sometimes, daily movement is just random.

It takes serious diligence which includes insider ownership, governance and code of conduct adherence while near-term vision is so hard to find in a world of “short-termism”.

  • However, true analysis could identify what …odds favor “our” universe over the multitude of iterations in the long-term!

Cash positions, not ATM usage or drawdowns will be the measurement tool of investment … as shares get registered to fund debt instruments – it pays to read 8-Ks!

  • I don't delude myself into thinking that I have special insight into the market but, I critically evaluate and practice the old counter-intelligence procedures and methods to bring clarity to any investment.

As always in regard to trading it's not a question of if but when!

 

 

My fear gauge or the CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market traded

·         Friday traded near 24;

·         Thursday traded near 25;

·         Wednesday traded down near 20.5;

·         Tuesday traded near 19.5 <down from 20.5>;

·         Monday traded near 22 after earlier topping 23 to hit its highest level in two weeks;

·         Last, Friday was a holiday

 

 

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector – the advance/decline line scenario – what a ride:

Friday, the stem, cell and gene therapy RegMed sector opened negative with an A/DL of 5/35 and 3 flats following

·         Thursday’s negative 4/38 and 1 flat;

·         Wednesday’s negative 5/36 and 2 flats;

·         Tuesday’s negative 5/17 and 6 flats;

·         Monday’s negative A/DL of 7/32 and 4 flats

Friday’s mid-day was positive with an A/DL of 25/17 and 1 flat;

·         Thursday’s negative A/DL of 5/36 and 2 flats;

·         Wednesday’s negative  A/DL of 5/36 and 2 flats;

·         Tuesday’s negative A/DL of 17/20 and 6 flats;

·         Monday’s negative 5/38 and 0 flats

Friday closed negative with an A/DL of 17/25 and 1 flat following

·         Thursday’ negative A/DL of 7/37 and o flat;

·         Wednesday negative with an A/DL of 5/36 and 2 flats;

·         Tuesday’s negative close of A/DL of 19/22 and 2 flats;

·         Monday’s negative A/DL of 7/33 and 3 flats

 

 

Friday’s indication round-up:  4 hits and 4 miss – at least I articulate the score:

  • Bellicum Pharma (BLCM) closed DOWN – miss;
  • BioTime (NYSEMKT: BTX) closed DOWN – miss;
  • Caladrius Biosciences (CLBS) closed DOWN – hit;
  • Capricor (CAPR) closed UP +$0.02 – miss;
  • Fate Therapeutics (FATE) closed UP – hit;
  • Harvard Apparatus RT (HART) closed UP – miss;
  • Juno Therapeutics (JUNO) closed UP – hit;
  • Verastem (VSTM) closed UP – hit;

 

 

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Friday -5.58 or -1.81%

·         Thursday -13.34 or -4.15

·         Wednesday -5.84 or -1.79%;

·         Tuesday’s +0.09 or +0.03%;

·         Monday’s -11.46 or -3.39%;

·         Last, Friday was a holiday

The NASDAQ Biotechnology index (NBI) closed DOWN on Friday -62.21 or -1.93%

·         Thursday -137.65 or -4.10%

·         Wednesday -61.10 or -1.79%;

·         Tuesday’s -6.50 or -0.19%;

·         Monday’s -112.78 or -3.19%;

·         Last, Friday was a holiday

The Russell 2000 (IWM) closed DOWN on Friday -1.82 or -1.72%

·         Thursday -2.90 or -2.67%

·         Wednesday -1.68 or -1.52%;

·         Tuesday’s +0.09 or +0.03% after

·         Monday’s -2.61 or -2.32% following

·         Last, Friday was a holiday

The SPDR SD&P Biotech ETF (XBI) closed DOWN on Friday -1.31 or -2.12%

·         Thursday -2.53 or -3.93%;

·         Wednesday -2.87 or -4.27%;

·         Tuesday’s -0.61 or -0.90%;

·         Monday’s -2.41 or -3.43%;

·         Last, Friday was a holiday

 

 

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

  • Open: NEGATIVE with 35 decliners, 5 advancers and 3 flats;
  • Mid-day (12:30 pm): POSITIVE with 17 decliners, 25 advancers and 1 flat;
  • Closing bell:  NEGATIVE with 25 decliners, 17 advancers and 1 flat

 

 

Who was UP – the top 5?

  • bluebird bio (BLUE) closed up +$1.34 to $55.44;
  • uniQure (QURE) closed up +$0.91 to $18.19;
  • Juno Therapeutics (JUNO) +$0.70 to $36.39;
  • Harvard Apparatus RT (HART) +$0.25 to $2.25;
  • Athersys (ATHX) closed up +$0.22 to $1.25;

 

 

Who closed down – top 5:

  • Intrexon (XON) closed down -$1.47 to $25.67;
  • Regenxbio (RGNX) -$0.89 to $13.78;
  • VistaGen (VSTA) -$0.75 to $9.00;
  • Osiris (OSIR) -$0.67 to $9.73;
  • Fibrocell (FCSC) closed down -$0.53 to $3.57

 

 

Flat:

  • Neuralstem (CUR) at $1.01

 

 

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.