May 24, 2016 6:34pm

… Charging the battery of the mid-day’s pricing as the iShares Nasdaq Biotechnology ETF (IBB) traded 2.26% higher.

 

Keeping score, pre-open indications: 4 hit and 1 miss

Do you care what happened today, you should … because it has implications to Wednesday's sector activity?  

 

 

There are two things that everyone needs 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 and regenerative medicine portfolio to track and monitor its pricing metric;

 

 

U.S. stocks closed more than 1% higher Tuesday, following encouraging reports on the housing market and sharp gains in European stocks.

The NASDAQ closed UP +95.27 or +2% to 4,861.06 and the DOW closed UP +213.12 or +1.22% to 17,706.05.

 

 

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.   

  • Opened positive with an A/DL of 25/15 and 3 flats;

 

  • The mid-day slipped negative  with an A/DL of 20/21 with 2 flats;

 

  • The closing bell jumped positive  with A/DL of 29/10 with 4 flats

 

 

Today’s Bottom Line:

  • The SCGT&RM sector was driven by a burst of momentum as we got closer to the upper end of the trading range

 

 

Henry’omics:

Sector stocks opened positive, slipped negative at the mid-day and closed positive.

  • The NASDAQ outperformed, trading above its 200-day moving average for the first time in intraday trade since late April.

The Russell 2000 climbed more than 1.5% to top its 200-day moving average for the first time in intraday trade in about two weeks.

  • In spite of headlines alerting investors that major indexes such as the Dow have declined four weeks in a row, markets are a mere -3.5% off their all-time highs.

Liquidity is still about how big the trade-off is between the speed of the sale and the price it can be sold for.  

  • In a liquid market, the trade-off is mild: selling quickly will not reduce the price much. In a relatively illiquid market, selling it quickly will require cutting its price by some amount.

Speculators are key contributors to the liquidity of a market.

 

 

A pre-open indication batting stats – 4 hit and 1 miss:

  • bluebird bio (BLUE) closed DOWN -$0.13 – hit;
  • Cesca Therapeutics (KOOL) closed UP +$0.41 – miss;
  • Histogenics (HSGX) closed UP +$0.10 – hit;
  • Intrexon (XON) closed UP +$0.99 – hit;
  • Verastem (VSTM) closed UP +$0.14 - hit;

 

 

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

  • Tuesday traded below 15;
  • Monday traded below 16
  • Friday traded 15.5;
  • Thursday traded 16.7;
  • Wednesday traded at 15.3;
  • Last, Tuesday traded below 15;

 

 

Most active sector stocks + and -:

  • Biostage (BSTG) -4.46%;
  • Brainstorm (BCLI) -3.11%;
  • BioLife Solutions (BLFS) -2.60%;
  • Fibrocell (FCSC) -2.36%;
  • Regenxbio (RGNX) -2.35%

Versus …

  • Opexa (OPXA) +20%;
  • Cesca Therapeutics (KOOL) +14.19%;
  • Verastem (VSTM) +9.79%;
  • ReNeuron (RENE.L) +7.69%;
  • Histogenics (HSGX) +5.38%

 

 

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.