RegMed’s close: traders get itchy trigger fingers and sell into a rally

January 25, 2016 5:38pm

We still looking for the hallmark of a tradeable bottom

News breaks, data is digested, and investors react. Some might be right; others might be too negative but, I seem to be early so you can profit.  So, let me obsess for you … subscribe … http://www.regmedinvestors.com/create-account 

If you have a smartphone in your pocket, you can access more information about the financial markets than the world's top hedge funds did 20 years ago. Yet, I bet your investment returns have not improved one iota as a result. But, who is interpreting that information … get it here!

U.S. stocks closed sharply lower Monday, weighed by a renewed decline in oil prices, as investors awaited key inputs on the pace of economic growth. A swath of major earnings reports, data and the FED's statement are all due later in the week. The major averages ended near session lows, as crude oil futures extended losses to trade below $30 a barrel. The S&P 500 and Nasdaq ended more than 1.5% lower, while the Dow was off more than 200 points.

The NASDAQ is DOWN -72.69 or -1.58% to 4,518.49 and the DOW is DOWN -208.29 or -1.29% to 15,885.22.

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

• Monday, the stem, cell and gene therapy RegMed sector opened negative with an A/DL of 18/19 and 6 flats.  The mid-day was positive with an A/DL of 21/17 and 5 flats while the closing bell rang with another positive A/DL of 16/26 and 1 flat.

Henry’omics:

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

• While the iShares Nasdaq Biotechnology ETF (IBB) ended -1.67% lower.

I continue to suggest after quick share price rises in the SCGT&RM sector stocks that investors get … defensive by raising some cash, maybe halving the total number of gaining positions and adding new shorts and put hedges in the next months through 2016.

• I can't find a whole bunch of new names to get thrilled about just yet.

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

·         Monday traded near 24;

·         Friday traded below 24;

Today’s VIX indicates there's a fair amount of concern out there that the rebound we saw last week might not be sustained.

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

• The market opened: NEGATIVE with 19 decliners, 18 advancers and 6 flat;

• The mid-day (12:30 pm:  POSITIVE with 17 decliners, 21 advancers and 5 flats;

• Closing bell: NEGATIVE with 26 decliners, 16 advancers and 1 flat

Monday’s indications are still relevant and early – 2 hits and 2 misses:

• Applied Genetic Technologies (AGTC) closed UP – miss;
• BioLife Solutions (BLFS) closed DOWN – hit;
• Capricor (CAPR) closed UP minutes before close – miss;
• Harvard Apparatus RT (HART) closed DOWN – hit;

Riding the indexes and ETFs roller-coaster:

• The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Monday -4.82 or -1.67% following Friday +9.27 or +3.33%;

• The NASDAQ Biotechnology index (NBI) closed DOWN on Monday -49.67 or -1.65% following  Friday’s advance of +93.61 or +3.21%;

• The Russell 2000 (IWM) closed DOWN on Monday -2.255 or -2.22% following Friday’s +2.42 or +2.45%;

• The SPDR SD&P Biotech ETF (XBI) closed DOWN on Monday -0.82 or -1.48% following Friday’s advance of +1.58 or +2.94%;

Who closed UP – top 10:

• uniQure (QURE) closed up +$0.53 to $17.39;
• Histogenics (HSGX) +$0.19 to $2.50;
• Applied Genetic Technologies (AGTC) +$0.28 to $16.11;
• Juno Therapeutics (JUNO) closed up +$0.26 to $32.50;
• Regenxbio (RGNX) +$0.24 to $12.93;
• Bellicum Pharma (BLCM) +$0.19 to $12.72;
• Opexa (OPXA) +$011 to $2.03;
• Stemline (STML) +$0.07 to $5.52;
• Mesoblast (MESO) +$0.07 to $6.05;
• Capricor (CAPR) closed up +$0.06 to $2.28

Who closed DOWN – top 10:

• Kite Pharma (KITE) closed down -$1.18 to $49.80;
• bluebird bio (BLUE) -$0.90 to $44.13;
• Intrexon (XON) -$0.88 to $26.74;
• Aduro Biotech (ADRO) -$0.70 to $17.69;
• VistaGen (VSTA) -$0.25 to $8.25;
• Northwest Bio (NWBO) -$0.24 to $2.34;
• Cellectis (CLLS) -$0.24 to $23.65;
• Spark Therapeutics (ONCE) -$0.21 to $30.54;
• AxoGen (AXGN) closed down -$0.19 to $4.82;
• Fibrocell (FCSC) closed down -$0.14 to $2.83;

Flat:

• ReNeuron (RENE.L) at $3.00

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.