March 9, 2016 5:33pm

 

Traders are back acting short term as if they ever changed; still playing the pricing nuance with the ever shifting sentiment

 

Ranking Wednesday’s end-of-day pre-open trading indications – 3 hits and 2 misses.

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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 higher in low volume trade Wednesday, helped by a rise in oil prices, as investors awaited Thursday's European Central Bank decision on monetary policy.

The NASDAQ closed UP +25.55 or +0.55% to 4,674.38 and the DOW closed UP +36.26 or +0.21% to 17,000.36.

 

 

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.

  • Tuesday, the stem, cell and gene therapy RegMed sector opened positive with an A/DL of 23/13 and 7 flats;
  • The mid-day stayed negative with an A/DL of 20/21 and 2 flats;
  • The closing bell rang positive with A/DL of 23/19 and 1 flats

 

 

Henry’omics:

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

  • The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 18.5.

Confidence in the SCGT&RM sector is like the lyrics by Little Richard “Slippin' and-a-slidin' - peepin' and a-hidin' … been told a long time ago”!

  • The iShares Nasdaq Biotechnology ETF (IBB) briefly traded more than 1.5% lower.

Biotechs came under pressure amid a U.S. government health agency proposal that would change the way Medicare compensates doctors who administer drugs in their offices as a way to try to cut drug spending <Reuters>.

  • If you’re too nervous to invest in “our’ universe right now, you’re not alone!

Forget about buying what’s cheap --- as many will just get cheaper!

  • The portfolio that I like the best is ranking by cash position <see the spread sheet under Q4/15 results> as those who have cash stashed in the company mattress.

The Bottom Line: Don’t be afraid to be fearful – it’s a protective valve!

 

 

Wednesday’s handicapping the sector pre-open indications – 3 hits and 2 miss: 

  • Aduro Biotech (ADRO) closed UP – hit;
  • Applied Genetic Technologies (AGTC) closed UP – hit;
  • bluebird bio (BLUE) closed DOWN – miss;
  • Capricor (CAPR) closed UP – miss;
  • StemCells (STEM) closed DOWN – hit;

 

 

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

  • The market opened: POSITIVE with 13 decliners, 23 advancers and 7 flats;
  • The mid-day (12:30 pm: NEGATIVE with 21 decliners, 20 advancers and 2 flats;
  • Closing bell: POSITIVE with 19 decliners, 23 advancers and 1 flat

 

 

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

·         Wednesday traded near 18.5;

·         Tuesday traded near 18.5;

·         Monday traded near 17.5;

·         Friday traded at 16.5;

·         Thursday traded below 17;

·         Last, Wednesday traded near 17, another decrease;

 

 

Riding the indexes and ETFs roller-coaster - a variable of the pattern analysis:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Wednesday -3.00 or -1.15%

·         Tuesday -9.63 or -3.57%

·         Monday +6.63 or +2.52%

·         Friday -1.11 or -0.42%

·         Thursday -3.88 or -1.45%

·         Last, Wednesday +2.85 or +1.07%

The NASDAQ Biotechnology index (NBI) closed DOWN on Wednesday –31.50 or -1.16%

·         Tuesday -100.90 or -3.58%

·         Monday +66.97 or +2.43%

·         Friday -9.39 or -0.34

·         Thursday -39.41 or -1.41%

·         Last, Wednesday +28.75 or +1.04%

The Russell 2000 (IWM) closed UP on Wednesday +0.54 or +0.51%

·         Tuesday -2.61 or -2.40%

·         Monday +1.17 or +1.09%

·         Friday +0.59 or +0.55%

·         Thursday +1.11 or +1.05%

·         Last, Wednesday +1.08 or +1.03%

The SPDR SD&P Biotech ETF (XBI) closed DOWN on Wednesday -0.47 or -0.92%

·         Tuesday -2.83 or -5.26%

·         Monday +1.86 or +3.58%

·         Friday +0.24 or +0.46%

·         Thursday -0.58 or -1.11%

·         Last, Wednesday +2.09 or +4.16%

 

 

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

  • bluebird bio (BLUE) closed down -$3.59 to $45.41;
  • Kite Pharma (KITE) -$2.30 to $49.30;
  • uniQure (QURE) -$1.00 to $12.82;
  • Cellectis ADR (CLLS) -$0.90 to $%24.53;
  • Osiris (OSIR) closed down -$0.71 to $5.75

 

 

Who was UP – top 5:

  • Aduro Biotech (ADRO) closed up +$1.23 to $16.27;
  • Intrexon (XON) +$1.08 to $37.55;
  • Juno Therapeutics (JUNO) +$0.70 to $40.73;
  • Mesoblast (MESO) +$0.48 to $8.74;
  • Applied Genetic Technologies (AGTC) closed up +$0.29 to $14.28

 

 

Who was FLAT?

  • VistaGen (VSTA) at $7.98;

 

 

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.