September 23, 2016 5:01pm

… As most sector stocks dip before they move to new highs …

Do ping-pong moves shake-out the weak hands, punish the crowded trade or reward the RMi’s subscribers.

 

Pre-open indication’s tally:  4 hits < AGTC, AST, AXGN and FATE> and 2 miss <JUNO and KITE>

 

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

 

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

Subscribe or lose!

 

 

I say what others won't, so you can do what others can't!

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. stocks closed lower on Friday, while investors digested key manufacturing data, following two strong sessions.

The NASDAQ closed DOWN -33.78 or -0.63% to 5,305.75 and the DOW closed DOWN -130.12 or -0.71% to 18,262.34.

 

 

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 16/22 and 3 flats;
  • The mid-day strayed neutral with an A/DL of 20/20 and 3 flat;
  • The closing bell flipped positive with A/DL of 22/20 and 1 flats;

 

 

Henry’omics:

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

I keep telling investors in the a.m. to check the indexes:  

  • The iShares Russell 2000 (IWM) indicated a negative open of -0.10% and was DOWN -0.69% at the close while the iShares Nasdaq Biotechnology (IBB) was indicated a negative open at -0.03% this a.m. and closed DOWN -0.63% at the close.

Despite the positive developments of the week’s sessions with four (4) positive closes and one (1) negative, seasonality also projects some weakness.

  • The lack of stringing five (5) solid up sessions together, I haven’t seen in a while!

Remember, nobody has ever gone broke by taking profits, that's why, I say traders are sure to be “lightening the load” as Q3 ends … as development company losses are expected.

  • If they are already trimming long-term exposure and taking some profits, they now have “money” to play!

 

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:

  • Applied Genetic Technologies (AGTC) closed UP +$0.07 – hit;
  • Asterias Biotherapeutics (NYSEMKT: AST) closed DOWN -$011 – hit;
  • AxoGen (AXGN) closed DOWN -$0.29 – hit;
  • Fate therapeutics (FATE) closed DOWN -$0.14 – hit;
  • Juno Therapeutics (JUNO) closed DOWN -$0.45 – miss;
  • Kite Pharma (KITE) closed DOWN -$0.18 – miss;

 

 

Today’s Bottom Line:

I believe the sector is getting tired and weakening after a number of mechanical up days following a decline.  The sector will be consolidating gains!

 

 

My pet peeve:

High-frequency trading accounted for 52% of September's daily trading volume of about 7.14 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.

 

 

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

  • Friday traded near 12.2 – I still don’t see it in our universe;
  • Thursday traded 11.3, -16.46% lower – I don’t see it in the SCG&RT sector;
  • Wednesday traded near 13.9, -2.6% lower;
  • Tuesday traded 15.9;
  • Monday traded near 15.3;
  • Last Friday traded near 16.2;

 

 

Decliners:

  • MiMedx (MDXG) -4.39%;
  • Cesca therapeutics (KOOL) -4.09%;
  • AxoGen (AXGN) -3.59% after Thursday’s+6.61% after Wednesday’s +4.11%;
  • Northwest Bio (NWBO) -3.55% after Thursday’s -12.37% after Wednesday’s -9.87% after Tuesday’s +18.82 % after Monday’s +23.28% after Friday’s +12.59% after last Thursday’s-18.81%;
  • Regenxbio (RGNX) -3.31%

 

 

Advancers:

  • Vericel (VCEL) +10.61% after Thursday’s +8.46%;
  • Bellicum (BLCM) +6.53%;
  • Histogenics (HSGX) +6.21% after Thursday’s -4.08%;
  • uniQure (QURE) +5.91%;
  • BioTime (NYSEMKT: BTX) +5.57% after Thursdays +3.16%

 

Flat:                                                            

  • Mesoblast (MESO) at $4.59;
  • ReNeuron (RENE.L) at $2.625;

                                                                                                                               

Volume spikes that stand out: 

  • Regenxbio (RGNX) 917.9 K shares traded <3 month average = 219.5 K shares>;
  • Vericel (VCEL 890.3 K shares traded <3 month average = 159.8 K shares>;
  • Asterias Biotherapeutics (NYSEMKT: AST) 440 K shares traded <3 month average = 251 K shares>;
  • Applied Genetic Technologies (AGTC) 377.5 K shares traded <3 month average =155.7 K shares>

 

 

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.