February 4, 2016 6:06pm

But, will it be curling-up?

I have opined about the sector and market history projecting a variety of pattern analysis and their resulting scenarios and I haven’t been wrong!

 

Subscribe to find out WHY … http://www.regmedinvestors.com/create-account   or take your losses without complaining!

 

 

Investors suffer from the paradox of information overload. 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. equities closed slightly higher in choppy trading Thursday as investors digested weaker-than-expected economic data and kept an eye on falling oil prices. The Dow added over nearly 150 points at session highs, after opening slightly lower. The S&P 500 and the NASDAQ closed mildly higher, after gaining more than 0.5 percent at session highs.

The mid-day NASDAQ closed UP +5.32 or +0.12% to 4,509.56 and the DOW closed UP +73.92 or +0.49% to 16,416.58.

 

 

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

  • Thursday, the stem, cell and gene therapy RegMed sector opened neutral with an A/DL of 20/20 and 3 flat while ...
  • The mid-day popped positive with an A/DL of 7/35 and 2 flats;
  • The closing bell rang positive with A/DL of 32/9 and 2 flats of our 43 covered companies.

 

 

Henry’omics:

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

  • What is the basis of the upside move – who cares, it is up but, why? NO news is not bad news or even good. Or have we seen short covering in some instances?

Questions need to have answers however, the philosopher Friedrich Nietzsche once observed that "any explanation is better than none." I disagree. Sometimes, in the investment world, no explanation is really relevant.

  • Interesting the low frequency of moves in the ETFs, IWM, IBB and XBI … while the VIX was up a hair!

For the last few months, I have been more a gloom but, no doom sort of sector commentator concerning “our” universe, coming after the first of the year.

  • But, I want to illuminate the bright side as I see it; 

 

  • These markets are not to be feared, they are to be managed and there are many approaches one can take to do just that.

 

Bottom line, I believe investors NEED to think shorter term in reference to the the stem, cell and gene therapy regenerative medicine as it barely tries … to rectify itself as to sentiment and expectation!

 

 

Thursday’s “casino” indications:  8 hits and 2 miss –when I am wrong, I admit and when I am right, I don’t shout - let the qualitative analysis and facts - speak over time!

  • Applied Genetic technologies (AGTC) closed UP – hit;
  • Athersys (ATHX) closed UP – miss;
  • Bellicum Pharma (BLCM) closed UP – hit;
  • Capricor (CAPR) closed UP – miss;
  • Fate Therapeutics (FATE) closed UP – hit;
  • Intrexon (XON) closed UP – hit;
  • Juno Therapeutics (JUNO) closed UP – hit;
  • Kite Pharma (KITE) closed UP – hit;
  • Osiris (OSIR) closed DOWN – hit;
  • Verastem (VSTM) closed UP – hit;

 

 

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

  • The market opened: NEUTRAL with 20 decliners, 20 advancers and 3 flats;
  • The mid-day (12:30 pm:  POSITIVE with 7 decliners, 35 advancers and 1 flat;
  • Closing bell: POSITIVE with 9 decliners, 32 advancers and 2 flats

 

 

Out and about:

Asterias Biotherapeutics confirms receipt of Orphan Designation from the FDA for its product development candidate, AST-OPC1, for the treatment of acute spinal cord injury.

  • They checked the box appropriately for receipt.    

 

 

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

·         Thursday traded below 22;

·         Wednesday traded above 21;

·         Tuesday traded near 22;

·         Monday traded above 20, its lowest since 1/5/16;

·         Friday traded below 20.5;

·         Last, Thursday closed near 22.5;

 

 

Riding the indexes and ETFs roller-coaster:

  • The iShares Biotechnology Stocks ETF (IBB) closed UP on Thursday +0.69 or +0.26 following Wednesday‘s advance of +2.99 or +1.15% after Tuesday -7.52 or -2.80% after Monday’s advance of +1.48 or +0.55%;
  • The NASDAQ Biotechnology index (NBI) closed UP on Thursday +7.78 or +0.28 following Wednesday’s +33.84 or +1.24% post Tuesday’s decline of -82.97 or -2.95% after Monday’s +13.64 or +0.49%;
  • The Russell 2000 (IWM) closed UP on Thursday 0.39 or +0.39% post Wednesday’s advance of +0.13 or +0.13% following Tuesday -2.21 or -2.16% after Monday’s decline of -0.47 or -0.81%;
  • The SPDR SD&P Biotech ETF (XBI) closed UP on Thursday +1.01 or 2.05 post Wednesday’s advance of +0.25 or +0.50% following Tuesday’s decline of -1.85 or -3.58% after Monday’s advance of +0.41 or +0.81%

 

 

Who was DOWN – only 10:

  • Osiris (OSIR) closed down -$0.85 to $6.14 – accounting/collection issues resulting in the resignation of the CEO;
  • Spark Therapeutics (ONCE) -$0.77 to $28.13 – traders love the “play”;
  • VistaGen (VSTA) -$0.24 to $8.00 – 140 shares moved this needle;
  • BioLife Solutions (BLFS) -$0.05 to $1.90 – their sentiment “bubble” is bursting – dependence on RegMed sector and credibility issues;
  • MiMedx (MDXG) -$0.04 to $8.03 – like New England weather, turn around and it will change;
  • Histogenics (HSGX) -$0.03 to $2.50 – a P3 is being undervalued by enrollment but, a slid need for its cartridge programs;
  • Mesoblast (MESO) -$0.02 to $5.19 – post offering support is a bust and news can drive an upside;
  • Brainstorm (BCLI) closed down -$0.01 to $2.35 – I would bet on this cold “table”;
  • Ocata Therapeutics (OCAT closed down -$0.01 to $8.45 – still fighting the acquisition, says a lot for this BOD and CEO

 

 

Who was UP – top 5:

  • The rest of “our” universe

 

 

Who was FLAT?

  • BioTime (NYSEMKT: BTX) at $2.30;
  • Reneuron (RENE.L) at $3.125;

 

 

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.