RegMed Investors’ closing bell analysis, we’ve seen this movie before

September 29, 2016 8:22pm

… Consequences of volume, pricing and volatility aren’t an accident of sentiment but, the alignment of risk …

It all comes down to exposure that arouses discontentment

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 Friday'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 sharply lower on Thursday as concerns over Deutsche Bank sent its U.S.-listed shares to an all-time low and weighed on the broader financial sector.

The NASDAQ closed DOWN -49.39 or -0.93% to 5,269.15 and the DOW closed DOWN -195.79 or -1.07% to 18,143.45.

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 14/26 and 3 flats;
• The mid-day stayed negative with an A/DL of 8/33 and 2 flats;
• The closing bell  stayed negative with A/DL of 7/35 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.

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

• The iShares Russell 2000 (IWM) was NOT indicating in the pre-open and was DOWN -1.46% at the close while the iShares Nasdaq Biotechnology (IBB) did NOT indicate in the pre-open and closed DOWN -3.12% at the close.
• The IWM and IBB tell a story about today and tomorrow.

I called a PAUSE this am as to a forecast or prognostication of whom and what to trade on the basis of my perception of a black cloud over the day’s indicators.  I didn’t see any buying of dips but, did feel the tremors of the selling finger tips.

• So happens, I was right <which I actually hate sometimes, it seems so negative>.

I watch and measure the sector by the minutes and one gets a “feel” for the pace and the momentum which gives me the capacity to render an opinion which I believe is better than any!

• It seems to be a repeat of yesterday and previous days as pricing is balanced on the scale of volatility!

Share turnover and pricing volatility are the influencers of sentiment?

• Sentiment determines the attitude of a trader and an investor with respect to polarity of sector share pricing and the market.

This attitude is a judgment or evaluation of the emotional state of the sector.

Look at today, technicals and fundamentals matter yet they seem over-ridden:

• The downside reflects a – 0.31% to -6.02% of xx equities versus yesterday’s -0.23% to -7.93% in 27 decliners;
• The upside shows an positive of xx equities trend of +0.30% to $2.96% versus yesterday’s 13 advancers with a variance of +0.34% to +5.10% - percentage is a factor in a day;
• Volume remains to the LOW side except in AST, RENE.L’s  downside and ATHX’s and BSTG’s upside;
• A favorite “spot” to be in these days is FLAT –  ISCO is than a splat …
• Other downside views are Capricor’s (CAPR) low volume <16.5 K shares> versus 3 month average volume <26,9 K shares>, Caladrius Biosciences (CLBS) volume <4416 shares> versus 3 month average of 36.178 shares;
• Histogenics’ (HSGX) 14.5 K shares traded versus <3 month average of 52 K shares;
• A few others include,  BLFS, BCLI and KOOL …

As we evaluate each day’s close, we can see the set-up for the oversold versus the overbought or the fairly valued

Percentage decliners:

• uniQure (QURE) -9.15%;
• Aduro (ADRO) -7.60%;
• Sangamo (SGMO) -6.54%;
• Mesoblast (MESO) -5.63%;
• Asterias Biotherapeutics (NYSEMKT: AST) -5.84%;

Percentage advancers:

• ImmunoCellular (NYSEMKT: IMUC) +2.87% or +$0.0033;
• Applied Genetic Technologies (AGTC) +2.81% after Tuesday’s +4.34%;
• Opexa (OPXA) +2.20%;
• Histogenics (HSGX) 1.58%;
• Biostage (BSTG) +0.93% or +$0.01;

Flat:                                                                                                      

• International Stem Cell (ISCO) at $1.85;

Volume movers:

• Volume remains to the LOW side except in AST, RENE.L’s downside and ATHX, KOOL and BSTG’s upside;
• Other downside views are Capricor’s (CAPR) low volume <8331 shares> versus 3 month average volume <26,942 shares>, Caladrius Biosciences (CLBS) volume <4416 shares> versus 3 month average of 36.178 shares;
• Histogenics’ (HSGX) 6174 shares traded versus 3 month average of 52K shares;
• A few others include:  AXGN, BLFS, BCLI, KOOL, MESO, OSIR …

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

• Thursday traded near 14.28 – a 15% jump;
• Wednesday traded near 12.4;
• Tuesday traded near 13.2;
• Monday traded near 14.3 -16.5% higher;
• Friday traded near 12.2 – I still don’t see it in our universe;
• Last Thursday traded 11.3, -16.46% lower – I don’t see it in the SCG&RT sector;

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.