March 21, 2016 7:54pm
I think investors get the sense, even with today’s momentum, the trend can’t last!
Ranking Monday’s end-of-day pre-open trading indications – 2 hits and 8 misses – be aware of commentary that is “early”.
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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 slightly higher in low volume trade Monday, steadying after five straight weeks of gains, with telecommunications and health care stocks leading.
The NASDAQ closed UP +13.23 or +0.28% to 4,808.87 and the DOW closed UP +21.57 or +0.12% to 17,623.87.
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 29/10 and 4 flats;
- The mid-day stayed positive with an A/DL of 30/12 and 1 flats;
- The closing bell rang positive with A/DL of 31/10 and 2 flat
Earnings update:
- Regenerative Medicine Earnings Scorecard - Q4/2015 - to date … http://www.regmedinvestors.com/articles/8876
Henry’omics:
The stem, cell and gene therapy regenerative medicine (SCGT&RM) sector opened positive, stayed positive at the mid-day and closed … positive (of 43 covered companies).
- The iShares Nasdaq Biotechnology ETF (IBB) closed about 2% higher.
MY warning is the SCGT&RM sector is not as strong – as today’s share pricing is a little about a “fatal attraction” syndrome – traders are chasing an upside, ready to sell into strength!
- The moment a bit of weakness appears or imposes itself upon the sector – be ready!
Traders are stalking and chasing a troubling behavior that results that has a deleterious effect on share pricing as experienced by an institutional <past> history.
- Traders trade which is driving this sector and market today … but, caution is exhibited by nervousness in large-institutional and retail investors.
Short-term deterioration is in the wind and ready to blow-down some appreciation!
- Opportunistic speculators prefer the short-term timeframe — or days to weeks forget months — trader’s message is to run for the hills every time the advance/decline lines exceed daily expectation.
The takeaway is to temper one's expectations as to what this sector is capable of – it needs back-up of clinical data, positive news and … access to capital markets.
- Until then …
Monday’s handicapping the sector pre-open indications – 2 hits and 8 miss:
- Applied Genetic Technologies (AGTC) closed UP +$0.62 - miss;
- Bellicum Pharma (BLCM) closed UP +$0.53 – miss;
- bluebird bio (BLUE) closed DOWN -$0.62 – hit;
- Capricor (CAPR) closed UP +$0.24 – miss;
- MiMedx (MDXG) closed UP +$0.22 – miss;
- Osiris (OSIR) closed UP +$0.30 – miss;
- Sangamo Biosciences (SGMO) closed UP +$0.25 – miss;
- Spark Therapeutics (ONCE) closed DOWN -$0.05 – hit;
- uniQure (QURE) closed UP +$0.15 – miss;
- Vericel (VCEL) closed UP +$0.68 – miss;
Dosing the sector – what a day for the 43 Patients:
- The market opened: POSITIVE with 10 decliners, 29 advancers and 4 flats;
- The mid-day (12:30 pm: POSITIVE with 12 decliners, 30 advancers and 1 flat;
- Closing bell: POSITIVE with 10 decliners, 31 advancers and 2 flats
Review my fear gauge or the CBOE Volatility Index (VIX) which is becoming less scary:
- Monday traded near 14;
- Friday above 14;
- Thursday traded below 14;
- Wednesday traded below 15.5;
- Tuesday traded above 17;
- Last, Monday traded below 17;
Riding the indexes and ETFs roller-coaster:
The iShares Biotechnology Stocks ETF (IBB) closed UP on Monday +5.15 or +2.05%
- Friday +4.25 or +1.72%
- Thursday -3.11 or -1.24%
- Wednesday -1.27 or -0.51%
- Tuesday -9.97 or -3.81%
- Last, Monday -0.50 or -0.19%
The NASDAQ Biotechnology index (NBI) closed UP on Monday +50.02 or +1.90%
- Friday +46.39 or +1.80%
- Thursday -31.69 or -1.21%
- Wednesday -13.26 or -0.50%
- Tuesday -105.31 or -3.85%
- Last, Monday -5.54 or -0.20%
The Russell 2000 (IWM) closed DOWN on Monday -0.26 or -0.24%
- Friday +0.98 or +0.90%
- Thursday +1.64 or +1.53%
- Wednesday +1.75 or +0.71
- Tuesday -1.68 or -1.56%
- Last, Monday -0.28 or -0.26%
The SPDR SD&P Biotech ETF (XBI) closed UP on Monday +1.18 or +2.38
- Friday
- Thursday +0.16 or +0.33%
- Wednesday -0.58 or -1.19%
- Tuesday -3.00 or -5.78%
- Last, Monday +0.59 or +1.15%
Who was leading the declines – to of the bottom 5?
- bluebird bio (BLUE) closed down -$0.62 to $44.02;
- Mesoblast (MESO) -$0.58 to $9.76;
- Juno Therapeutics (JUNO) -$0.30 to $39.14;
- Cesca Therapeutics (KOOL) -$0.19 to $3.83;
- Organovo (ONVO) closed down -$0.14 to $2.05
Who was UP – top 5:
- Kite Pharma (KUITE) closed up +$1.50 to $45.83;
- Intrexon (XON) +$1.06 to $38.44;
- Vericel (VCEL) +$0.68 to $5.29;
- Applied Genetics Technologies (AGTC) +$0.62 to $14.37;
- Aduro Biotech (ADRO) closed up +$0.60 to $12.57
Who was FLAT?
- Verastem (VSTM) at $1.43;
- VistaGen (VSTA) at $7.99
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.
