RegMed Investors’ closing bell analysis, sell off

September 9, 2016 5:42pm

… Volatility was focused on pricing sustainability

As the iShares Nasdaq Biotechnology ETF (IBB) fell -3.26%

… Intraday support had been violated, how vulnerable are we on Monday?  

Sunday is the 15^th anniversary of 9/11 – honor and remember the victims!

Pre-open indication’s tally:  4 hits (BTX, HSGX and STML) and 2 miss (AST and VTGN)

Advance/Decline and Flat Recap: 5/37 and 1 flat

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

I answer one question; in which company should investors put, keep and commit their money!

I wasn’t surprised by today’s sector action, in fact if you had read the am post - you wouldn’t have had to lose playing sector poker with the market! It is TIME to be a subscriber!

There are two things that investors need - interpretation of news and translation of market metrics concerning the stem, cell, gene and regenerative therapy sector to substantiate share pricing.

U.S. equities closed sharply lower on Friday as concerns the Federal Reserve might raise interest rates this month loomed following comments made by key Fed officials.

The NASDAQ closed DOWN -133.57 or -2.54% to 5,125.91 and the DOW closed DOWN -394.46 or -2.13% to 18,085.45.

A day in the life of the stem, cell, gene and regenerative therapy (SCGT & RT) sector – the advance/decline line scenario of our 43 covered companies:   

• The open was negative with an A/DL of 13/27 and 3 flats;
• The mid-day stayed negative with an A/DL of 6/34 and 3 flats;
• The closing bell continued negative with A/DL of 5/37 and 1 flat;

Henry’omics:

The stem, cell, gene and regenerative therapy (SCGT&RT) sector was negative at the opening bell, stayed negative at the mid-day with the sector closing negative.

• The Dow closed nearly 400 points lower, its biggest single day fall since June 24 and its worst week since January. The S&P 500 fell 2.45%, also posted its first 1% move since July 8, as well as its biggest one-day fall since June 24.  The NASDAQ closed down -2.54%.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded more than 30% higher, near 16.4.

• Volume spiked again in ImmunoCellular (NYSEMKT : IMUC) – 3rd day, Intrexon(XON), MiMedx (MDXG) – 3rd day, Northwest Bio (NWBO) – 3rd day, Juno Therapeutics (JUNO) – 3rd day, Sangamo (SGMO) – 3^rd day, and bluebird bio (BLUE) – 2^nd day.

Volume picks up as market participants complete their late-summer vacations, resulting in a return to fully staffed trading desks.

• The NASDAQ turnover was higher Tuesday and Wednesday than any other session over the last month.

Thursday versus Friday’s divergence is not a timing tool!

• Nevertheless, deviation does provide a view of short-term sector health.

As I watch the charts during these weeks of Q3, they reveal a fickle sentiment an on-going trading influence.

Despite these unfavorable tendencies, there remain a few positives - many in viable trading ranges and more negatives – related to those equities that DESPERATELY NEED to raise CAPITAL.

Call me cantankerous, contrarian or even a curmudgeon but at the least I get it right and investors make money!

Pre-open indication’s tally:  4 hit and 2 miss:

• Asterias Biotherapeutics (NYSEMKT: AST) closed UP +$0.40 – miss;
• BioTime (NYSEMKT: BTX) closed DOWN -$0.14 – hit;
• Histogenics (HSGX) closed DOWN -$0.39 – hit;
• MiMedx (MDXG) closed DOWN -$0.12 – hit;
• Stemline (STML) closed DOWN -$0.86 – hit;
• VistaGen (VTGN) closed UP +$0.12 – miss;

My “pet peeve”:            

High-frequency trading accounted for 49% of August's daily trading volume of about 6.12 billion shares <TABB Group>.

• During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.

Today’s Bottom Line:

Volatility was focused on the riskier companies in “our’ universe!

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

• Friday traded 16.4 – 30% higher;
• Thursday traded 12.2;
• Wednesday traded 11.94;
• Tuesday traded near 12.2;
• Monday was a holiday;
• Last Friday traded near 12.2;

Decliners:

• AxoGen (AXGN) -11.32%;
• Osiris (OSIR) -10.62%;
• Histogenics (HSGX) -9.73% after Thursday’s +12.92% after Wednesday’s +17.88% after Tuesday’s -7.62% - always the come-back stock;-
• Stemline (STML) -9.39%;
• Sangamo (SGMO) -7.23%

Advancers:

• Asterias Biotherapeutics (NYSEMKT: AST) +10.86% after Thursday’s +11.82% after Wednesday’s +6.10% - a new bullseye;
• International Stem Cell (ISCO) +8.33% after Thursday’s flat;
• Neuralstem (CUR) +7.58% or +$0.02;
• Adverum (ADVM) +3.76%;
• VistaGen (VTGN) +3.02% - next week’s target

Flat:

• ReNeuron (RENE.L) at $2.625;

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.