March 16, 2016 6:04pm

 

A drop and pop scenario …

 

The iShares Nasdaq Biotechnology ETF (IBB) gave up attempts at gains to close 1/2 % lower, following a 3.8% drop on Tuesday.

 

Ranking Wednesday’s end-of-day pre-open trading indications – 6 hits and 2 misses.

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There is one thing that everyone needs, and that's interpretation and translation of intelligence, not just news or information - we get too much!

  • To that end, I report a matrix of variables designed for investor’s consideration concerning the stem, cell and gene therapy regenerative medicine portfolio to track and monitor its pricing metric;

The takeaway is that investor need to decide what actions to take, or not take, based on their specific situation.

 

 

U.S. stocks closed higher Wednesday, helped by a rise in oil prices, following the release of the Federal Reserve's statement and economic projections.

The NASDAQ closed UP +35.30 or +0.75% to 4,763.97 and the DOW closed UP +74.23 or +0.43% to 17,325.76.

 

 

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.

  • Wednesday, the stem, cell and gene therapy RegMed sector opened negative with an A/DL of 14/25 and 4 flats;
  • The mid-day stayed negative with an A/DL of 11/32 and 0 flat;
  • The closing bell rang negative with A/DL of 19/23 and 1 flat

 

 

Earnings update:

 

 

Henry’omics:

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

  • After the Fed statement release, the CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, fell below 15.5 to its lowest intraday level since 12/24/15.

Fed Chair Janet Yellen said in a press conference following the statement release that policymakers have not concluded inflation has seen a significant, lasting uptick.

  •  I think it's neutral for stocks.

Getting to those variables about the status of the SCGT&RM sector is quantifiable – their trending down; defining the upside is a qualitative lesson to be forecasted but, not impossible.

  • Since we don't know that news is a motivator; the sector has lately reacted poorly to good news or enthusiastically to a bad news.

There's no predictable rhyme and reason but, the pop and drop scenario on alternating one to two days seems to be the norm.

 

 

Wednesday’s handicapping the sector pre-open indications – 6 hits and 2 miss: 

  • Applied Genetic Technologies (AGTC) closed DOWN -$0.12 – miss;
  • Caladrius Biosciences (CLBS) closed DOWN -$0.049 – hit;
  • Intrexon (XON) closed UP +$0.33 – hit;
  • Juno Therapeutics (JUNO) closed UP +$0.25 – hit;
  • Kite Pharma (KITE) closed DOWN -$0.78 – hit;
  • Osiris (OSIR) closed DOWN -$0.27 – hit;
  • Vericel (VCEL) closed UP +$0.08 – miss;
  • Spark Therapeutics (ONCE) closed DOWN -$0.06 – hit;

 

 

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

  • The market opened: NEGATIVE with 25 decliners, 14 advancers and 4 flats;
  • The mid-day (12:30 pm: NEGATIVE with 32 decliners, 11 advancers and 0 flat;
  • Closing bell: NEGATIVE with 23 decliners, 19 advancers and 1 flat

 

 

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

·         Wednesday traded below 15.5;

·         Tuesday traded above 17;

·         Monday traded below 17;

·         Friday traded below 17;

·         Thursday traded above 19;

·         Last, Wednesday traded near 18.5;

 

 

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Wednesday -1.27 or -0.51%

·         Tuesday -9.97 or -3.81%

·         Monday -0.50 or -0.19%

·         Friday closed up +6.86 or +2.69%;

·         Thursday -1.62 or -0.63%

·         Last, Wednesday -3.00 or -1.15%

The NASDAQ Biotechnology index (NBI) closed DOWN on Wednesday -13.26 or -0.50%

·         Tuesday -105.31 or -3.85%

·         Monday -5.54 or -0.20%

·         Friday closed up +71.65 or +2.69%

·         Thursday -21.07 or -0.78%

·         Last, Wednesday –31.50 or -1.16%

The Russell 2000 (IWM) closed UP on Wednesday +1.75 or +0.71

·         Tuesday -1.68 or -1.56%

·         Monday -0.28 or -0.26%

·         Friday closed UP +2.27 or +2.14%;

·         Thursday -0.87 or -0.81%

·         Last, Wednesday +0.54 or +0.51%

The SPDR SD&P Biotech ETF (XBI) closed DOWN on Wednesday -0.58 or -1.19%

·         Tuesday -3.00 or -5.78%

·         Monday +0.59 or +1.15%

·         Friday closed up +1.66 or +3.34%

·         Thursday -0.87 or -1.72%

·         Last, Wednesday -0.47 or -0.92%

 

 

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

  • Kite Pharma (KITE) closed down -$0.78 to $44.13;
  • uniQure (QURE) -$0.38 to $11.42;
  • Stemline (STML)-$0.38 to $4.77;
  • Bellicum (BLCM) -$0.30 to $7.79;
  • Osiris (OSIR) closed down -$0.27 to $4.86

 

 

Who was UP – top 5:

  • Bluebird bio (BLUE) closed down -$0.69 to $44.56;
  • Intrexon (XON) +$0.33 to $34.52;
  • Juno Therapeutics (JUNO) +$0.25 to $37.04;
  • Capricor (CAPR) +$0.16 to $2.52;
  • ReNeuron (RENE.L) closed up +$0.125 to $3.375

 

 

Who was FLAT?

  • Cytori (CYTX) at $0.18;
  • VistaGen (VSTA) at $8.00;

 

 

“Venimus, emimus, vendidit et resurrexit” – the new mantra, we came, we bought, we sold and we came back again!

 

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.