RegMed’s close: the hammer falls again

February 29, 2016 6:00pm

As the iShares Nasdaq Biotechnology ETF (IBB) traded 2.8% lower.

“Our” universe is being re-weighted as to expectation while bundled by volatility.

Ranking Monday’s end-of-day pre-open indications – 6 hits and 1 misses. Subscribe:  http://www.regmedinvestors.com/create-account   

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. stocks closed lower Monday, despite gains in oil, as the S&P 500 and NASDAQ ended February with losses. Traders attributed the decline in stocks largely to late-day sell orders around the month-end.  Selling accelerated into the close, with the S&P 500 closing about 0.8% lower on the day, below its 50-day moving average and down 0.4% for the month. The S&P and NASDAQ posted their first three-straight months of losses since the five-month losing streak ended September 2011.  The Dow closed below its 50-day moving average, but still squeezed out a gain of 0.3% for the month.

The NASDAQ closed DOWN -32.52 or -0.71% to 4,557.95 and the DOW closed DOWN -123.47 or -0.74% to 16,516.50.

A day in the life of the stem, cell and gene therapy RegMed (SCGT & RM) sector – the advance/decline line scenario of our 43 covered companies.

• Monday, the stem, cell and gene therapy RegMed sector opened positive with an A/DL of 22/19 and 2 flats;

• The mid-day slipped neutral with an A/DL of 20/20 and 3 flats;

• The closing bell rang negative with A/DL of 16/24 and 2 flats

Henry’omics:

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

• The NASDAQ post third straight monthly declines.

Health care stocks closed more than 1.5% lower to lead declines on the S&P 500 while the iShares Nasdaq Biotechnology ETF (IBB) ended down 2.8%.

• The risk appetite remains "exceptionally weak" as more investors rotate to safe assets today <so who are they?>in “our” universe.

Past five (5) days (of 43 covered companies):

·         Monday closed negative with 24 decliners, 16 advancers and 2 flats;

·         Friday closed POSITIVE with 9 decliners, 32 advancers and 2 flat;

·         Thursday closed NEGATIVE with 23 decliners, 19 advancers and 1 flat;

·         Wednesday closed POSITIVE with 17 decliners, 23 advancers and 3 flats;

·         Tuesday closed NEGATIVE with 33 decliners, 8 advancers and 2 flats;

·         Last, Monday closed POSITIVE with 8 decliners, 32 advancers and 3 flats

The A/DL and closing patterns suggest that while trades are to the downside, the probability of these configurations are likely to continue – until the end of financial results/earnings season or by April!

• The SCGT&RM sector is currently undergoing a period of serious volatility which WILL continue through 2016, which means that for investors who are tired of volatility to EXIT for a while, re-calibrate your stock holdings and picks to survive this current reality.

I am NOT sure that patience is a virtue as learned from my Jesuit education – the trend <at the moment> is NOT our friend.

• MY issue is where is there any support!

These are facts that investors have become accustomed to: the flop then the flip to the flop again!

Monday’s handicapping the sector pre-open indications – 6 hits and 1 miss: 

• Athersys (ATHX) closed UP – hit;
• BioLife Solutions (BLFS) closed DOWN – hit;
• Capricor (CAPR) closed UP – miss;
• Caladrius Bioscience (CLBS) closed DOWN – hit;
• Juno therapeutics (JUNO) closed DOWN – hit;
• Kite Pharma (KITE) closed DOWN – hit;
• Intrexon (XON) closed DOWN – hit;

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

• The market opened: POSITIVE with 19 decliners, 22 advancers and 2 flats;

• The mid-day (12:30 pm: NEUTRAL with 20 decliners, 20 advancers and 3 flats;

• Closing bell: NEGATIVE with 24 decliners, 16 advancers and 2 flats

Review my fear gauge or the CBOE Volatility Index (VIX) which is scary:

·         Monday traded below 20;

·         Friday traded near 19.8;

·         Thursday traded near 20;

·         Wednesday traded at 20.5;

·         Tuesday traded above 20;

·         Last, Monday traded above 21;

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Monday -7.40 or -2.83%

·         Friday +2.17 or +0.84%

The NASDAQ Biotechnology index (NBI) closed DOWN on Monday -73.30 or -2.68%

·         Friday +21.34 or +0.79%

The Russell 2000 (IWM) closed DOWN on Monday -0.46 or -0.45%

·         Friday +8.65 or +0.63%

The SPDR SD&P Biotech ETF (XBI) closed DOWN on Monday -1.50 or -3.04%

·         Friday +0.85 or +1.75%

Who was UP – top 5:

• Cellectis (CLLS) closed up +$0.92 to $23.81;
• Asterias (NYSEMKT: AST) +$0.65 to $4.29;
• Mesoblast (MESO) +$0.48 to $6.54;
• Stemline (STML) +$0.19 to $4.81;
• Capricor (CAPR) closed up +$0.14 to $2.44;

Who was leading the declines – to of the bottom 5?

• bluebird bio (BLUE) closed down -$3.51 to $46.22;
• Intrexon (XON) -$2.81 to $30.95;
• Kite Pharma (KITE) -$2.65 to $44.72;
• Juno Therapeutics (JUNO) -$1.50 to $35.17;
• Regenxbio (RGNX) closed down -$0.95 to $12.13;

Who was FLAT?

• ReNeuron (RENE.L) at $2.875;
• VistaGen (VSTA) at $8.00                                    

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.