March 17, 2016 5:59pm

 

A volatile sector that changes trends and directions by the day and sometimes by the hour

 

The iShares Nasdaq Biotechnology ETF (IBB) traded more than 1.2% lower on Thursday.

 

Ranking Thursday’s end-of-day pre-open trading indications – 4 hits and 1 miss.

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The Dow closed in positive territory for 2016 with The Nasdaq also closing up on Thursday. A positive view of the Fed's Wednesday announcements also helped stocks.

The NASDAQ closed UP +11.02 or +0.23% to 4,774.98 and the DOW closed UP +155.73 or +0.90% to 17,481.49.

 

 

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.

  • Thursday, the stem, cell and gene therapy RegMed sector opened negative with an A/DL of 11/27 and 3 flats;
  •  The mid-day stayed negative with an A/DL of 13/29 and 1 flat;
  •  The closing bell rang positive with A/DL of 21/18 and 4 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 … positive (of 43 covered companies).

  • The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held above 14. Earlier, the VIX fell below 14 to hit its lowest since November.

With March Madness upon us, we're provided with an opportune time to reflect on our “universes” trading.

  • When watching the SCGT&RM sector react to the daily, weekly and monthly activity or history, one comes to the conclusion that it's foolish to assume that because the sector has not done well in the recent past due to volatility, that it will not do well in the future.

Just the opposite, the SCGT&RM sector should be generating greater optimism as Q4/15 financial results are completed – a hang-up for many investors as to cash utilization and end-of-year positions.

  • What we, as investors need is … a consistent pattern of increased upside frequency than these lower-lows!

 

 

Thursday’s handicapping the sector pre-open indications – 4 hits and 1 miss: 

  • Applied Genetic Technologies (AGTC) closed UP -$0.08 – hit;
  • Caladrius Biosciences (CLBS) closed DOWN -$0.02 – miss;
  •  Intrexon (XON) closed UP +$1.26 – hit;
  •  Kite Pharma (KITE) closed UP +$0.47 – hit;
  • Osiris (OSIR) closed UP +$0.13 – hit;

 

 

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

  • The market opened: NEGATIVE with 27 decliners, 11 advancers and 3 flats;
  • The mid-day (12:30 pm: NEGATIVE with 29 decliners, 13 advancers and 1 flat;
  • Closing bell: POSITIVE with 18 decliners, 21 advancers and 4 flats

 

 

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

·         Thursday traded below 14;

·         Wednesday traded below 15.5;

·         Tuesday traded above 17;

·         Monday traded below 17;

·         Friday traded below 17;

·         Last, Thursday traded above 19;

 

 

Riding the indexes and ETFs roller-coaster:

The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Thursday -3.11 or -1.24%

·         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%;

·         Last, Thursday -1.62 or -0.63%

The NASDAQ Biotechnology index (NBI) closed DOWN on Thursday -31.69 or -1.21%

·         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%

·         Last, Thursday -21.07 or -0.78%

The Russell 2000 (IWM) closed UP on Thursday +1.64 or +1.53%

·         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%;

·         Last, Thursday -0.87 or -0.81%

The SPDR SD&P Biotech ETF (XBI) closed UP on Thursday +0.16 or +0.33%

·         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%

·         Last, Thursday -0.87 or -1.72%

 

 

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

  • Aduro Biotech (ADRO) closed down -$0.93 to $11.54;
  • Regenxbio (RGNX) -$0.45 to $11.97;
  • Histogenics (HSGX) -$0.31 to $2.32;
  • uniQure (QURE) -$0.28 to $11.14;
  • ReNeuron (RENE.L) closed down -$0.25 to $3.125

 

 

Who was UP – top 5:

  • Mesoblast (MESO) closed up +$1.47 to $10.52;
  • Intrexon (XON) +$1.26 to $35.78;
  • Juno Therapeutics (JUNO) +$1.01 to $38.05;
  • Spark therapeutics (ONCE) +$0.94 to $33.39;
  • Bluebird bio (BLUE) closed up +$0.90 to $45.46

 

 

Who was FLAT?

  • AxoGen (AXGN) at $5.28;
  • BioLife Solutions (BLFS) at $1.91;
  • Pluristem (PSTI) at $1.49;
  • 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.