March 23, 2016 7:04pm
The stem, cell and gene therapy and regenerative medicine sector closed dangerously lower on Wednesday as the downside pattern <I saw> came to fruition. Adding to the downturn,
investors were deterred by the shortened trading week ahead of the Good Friday holiday and uncertainty tied to Tuesday's bombings in Brussels
Ranking Wednesday’s end-of-day pre-open trading indications – 2 hits and 3 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 lower Wednesday with energy stocks leading declines as oil settled below $40 a barrel. I think its concerns about what transpired in Europe yesterday, concerns about global growth after having a market rally as much as it has...
The NASDAQ closed DOWN -52.80 or -1.10% to 4,768.86 and the DOW closed DOWN -79.98 or -0.45% to 17,502.59.
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 and regenerative medicine sector opened neutral with an A/DL of 17/17 and 9 flats;
- The mid-day slipped negative with an A/DL of 5/36 and 2 flats;
- The closing bell rang negative with A/DL of 3/38 and 1 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 neutral, dived negative at the mid-day and closed … negative (of 43 covered companies).
- The iShares Nasdaq Biotechnology ETF (IBB) closed down 3.36% for its worst day in more than a week.
The Russell 2000 closed nearly 2% lower for its first three-day losing streak since the 5-straight days of losses ended Feb. 11, when stocks hit lows in the so-called Dimon bottom.
- We didn't read too much into the 11-12% sell-off and we're not reading too much into the previous four (4) day rally.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held just below 15 – a hair up from yesterday’s above 14 - having remained pretty flat for the past four (4) sessions.
- Reiterating, MY warning that the SCGT&RM sector is not as strong – as Monday and Tuesday’s share pricing didn’t NOT hit as I had expected but - I did NOT change my view of potential trouble ahead and it - hit.
As I had stated … short-term deterioration is in the wind and ready to blow-down some appreciation!
Notice:
- That the advance/decline line scenario <above> of our 43 covered companies are declined from yesterday’s close of <A/DL> 26/15 as compared to today’s A/DL of 4/38;
- The Russell 2000 (IWM) also closed DOWN on Wednesday -1.85% as I had predicted based on Tuesday -0.13 or -0.12% following Monday’s decline of -0.26 or -0.24%
Until then … for Thursday’s end of the week’s sessions due to Good Friday …
Wednesday’s handicapping the sector pre-open indications – 3 hits and 2 miss:
- Athersys (ATHX) closed DOWN -$0.135 – hit;
- Capricor (CAPR) closed DOWN -$0.02 – hit;
- Osiris (OSIR) closed DOWN -$0.70 – miss;
- Verastem (VSTM) closed DOWN -$0.01 – miss;
- Vericel (VCEL) closed DOWN -$0.11 – hit;
Dosing the sector – what a day for the 43 Patients:
- The market opened: NEUTRAL with 17 decliners, 17 advancers and 9 flats;
- The mid-day (12:30 pm: NEGATIVE with 36 decliners, 5 advancers and 2 flat;
- Closing bell: NEGATIVE with 38 decliners, 4 advancers and 1 flat
Review my fear gauge or the CBOE Volatility Index (VIX) which is scary:
- Wednesday traded below 15;
- Tuesday traded above 14;
- Monday traded near 14;
- Friday above 14;
- Thursday traded below 14;
- Last, Wednesday traded below 15.5;
Riding the indexes and ETFs roller-coaster:
The iShares Biotechnology Stocks ETF (IBB) closed DOWN on Wednesday -8.84 or -3.36%
- Tuesday +6.61 or +2.58%
- Monday +5.15 or +2.05%
- Friday +4.25 or +1.72%
- Thursday -3.11 or -1.24%
- Last, Wednesday -1.27 or -0.51%
The NASDAQ Biotechnology index (NBI) closed DOWN on Wednesday -93.34 or -3.39%
- Tuesday +69.98 or +2.61%
- Monday +50.02 or +1.90%
- Friday +46.39 or +1.80%
- Thursday -31.69 or -1.21%
- Last, Wednesday -13.26 or -0.50%
The Russell 2000 (IWM) closed DOWN on Wednesday -2.01 or -1.85%
- Tuesday -0.13 or -0.12%
- Monday -0.26 or -0.24%
- Friday +0.98 or +0.90%
- Thursday +1.64 or +1.53%
- Last, Wednesday +1.75 or +0.71
The SPDR SD&P Biotech ETF (XBI) closed DOWN on Wednesday -2.61 or -4.97%
- Tuesday +1.66 or +3.27%
- Monday +1.18 or +2.38
- Friday was up;
- Thursday +0.16 or +0.33%
- Last, Wednesday -0.58 or -1.19%
Who was leading the declines – to of the bottom 5?
- bluebird bio (BLUE) closed down -$5.15 to $40.96;
- Spark Therapeutics (ONCE) -$4.07 to $32.88;
- Juno Therapeutics (JUNO) -$3.66 to $36.84;
- Kite Pharma (KITE) -$3.01 to $42.44;
- Intrexon (XON) closed down -$2.34 to $35.46;
Who was UP – only 4:
- AxoGen (AXGN) closed up +$0.10 to $5.30;
- Histogenics (HSGX) +$0.04 to $2.49;
- Mesoblast (MESO) +$0.06 to $9.50
- Cytori (CYTX) closed up +$0.005 to $0.192
Who was FLAT?
- ReNeuron (RENE.L) at $3.375;
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.
