October 20, 2016 5:14pm
… Financial results/earnings are going to be one of the main pricing factors as we head into the end of the year and Q1/17
While we wait, extraneous information usually influences daily outcomes
Pre-open indication’s tally: 4 hit (BLUE, JUNO, ONCE and ONVO) and 1 miss (KITE)
I answer one question; in which company should investors put, keep and commit their money!
Do you care what happened today, you could have known … because it has implications to Friday's sector activity?
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It's a daunting task to understand risk, seeing the unforeseen; on the basis of my own code of reliability, I have one rule: I eat my own cooking and I speak to my “concerns”!
It's a daunting task to understand risk, seeing the unforeseen; on the basis of my own code of reliability, I have one rule: I eat my own cooking and I speak to my “concerns”!
Stocks closed lower Thursday, after a sharp fall in oil prices, while investors parsed through key U.S. economic data, and digested a key European Central Bank decision on interest rates.
The NASDAQ closed DOWN -4.58 or -0.09% to 5,241.83 and the DOW closed DOWN -41.36 or -0.23% to 18,161.26.
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 18/21 and 4 flats;
- The mid-day jumped positive with an A/DL of 25/16 and 2 flats;
- The closing bell was positive with A/DL of 25/16 and 2 flats;
Henry’omics:
The stem, cell, gene and regenerative therapy (SCGT&RT) sector opened negative, jumped positive at the mid-day and closed positive.
I keep telling investors in the a.m. to check the indexes:
- The iShares Russell 2000 (IWM) did NOT indicate indicated a negative pre- and was DOWN -0.30% at the close while the iShares Nasdaq Biotechnology (IBB) indicated a negative pre-open -0.73% and closed UP +0.96%.
A simple buy-and-hold philosophy toward “our’ universe does NOT work. Investors HAVE to be tactical, well informed and be on the lookout for daily situations to make any money in this market. WHY:
- Thursday closed POSITIVE with 16 decliners, 25 advancers and 2 flats;
- Wednesday closed NEGATIVE with 26 decliners, 14 advancers and 3 flats;
- Tuesday closed POSITIVE with 12 decliners, 27 advancers and 2 flats;
- Monday closed NEGATIVE with 34 decliners, 7 advancers and 2 flats;
What’s tickling value investor's ears is all of the lack of headlines which envelops the uncertainty in the sector while vinegary sentiment toward stock’s pricing stays bitter. Look close at today and the past days – trading ranges - I see patterns:
The downside trend reflects a pricing trend range of:
- Thursday’s decline ranged from -0.31% to -15.19% in sixteen (16) equities;
- Wednesday’s decline ranged from -0.29 to -7.69% in twenty-seven (27) equities;
- Tuesday’s decline from -0.24% to -6.58% in twelve (12) equities;
- Monday’s decline ranged from –0.05% to –10.07% in thirty-four (34) equities;
- Friday’s decline ranged from -0.53% to -13.29% in twenty-nine (29) equities
- Last Thursday’s decline ranged from -0.23% to -5.95% in thirty-one (31) equities;
The upside shows a pricing trend range of:
- Thursday’s upside ranged from +0.51% to +6.94% in twenty-five (25) equities;
- Wednesday’s upside ranged from +0.24% to 14.34% in sixteen (16) equities;
- Tuesday’s upside ranged from +0.24% to +11.24% in twenty-seven (27) equities;
- Monday upside ranged from +0.12 to +4.66% in seven (7) equities
- Friday’s upside ranged from +0.52% to +3.95% in twelve (12) equities;
- Last Thursday’s upside ranged from +0.12% to +3.84% in nine (9) equities;
Wrap-up: Thursday’s sector <43 companies> 25 gains increased from Wednesday’s 16 with so-so volume; while the downside of 16 compared to Wednesday’s 27 with decreased volume … as the number of upside companies increased by 9 as the sector’s oversold were recognized …
Pre-market indication review: 4 hit and 1 miss:
- bluebird bio (BLUE) closed UP +$1.90 – hit;
- Juno Therapeutics (JUNO) closed UP +$0.85 – hit;
- Kite Pharma (KITE) closed DOWN -$0.60 – miss;
- Organovo (ONVO) closed DOWN -$0.53 – hit;
- Spark Therapeutics (ONCE) closed UP +$0.26 – hit;
We've got a back-and-forth pricing as the week comes to a close. One day, you get a strong upside, and then the next a dive. There's just no clear path as weakness is all about trading than the fundamentals of a company.
Percentage decliners:
- Organovo (ONVO) -15.19%;
- Vericel (VCEL) -6%;
- Asterias Biotherapeutics (NYSEMKT: AST) -4% after Wednesday’s +4.17%;
- VistaGen (VTGN) -3.37%;
- Cytori (CYTX) -3.05% after Wednesday’s +3.14% post Tuesday’s +3.24%;
Percentage advancers:
- Sangamo (SGMO) +6.94% after Wednesday’s -7.69;
- Aduro Biotech (ADRO) +6.71%;
- Neuralstem (CUR) +5.52%;
- StemCells (STEM) +5.42%;
- Regenxbio (RGNX) +4.69%
Flat:
- BioLife Solutions (BLFS) at $1.67;
- Pluristem (PSTI) at $1.49;
Review my fear gauge or the CBOE Volatility Index (VIX):
- Thursday traded near 13.9
- Wednesday traded near 14.3;
- Tuesday traded near 15;
- Monday traded near 16.5;
- Friday traded near 15.7;
- Last Thursday traded near 17 - a +7.31% increase;
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.
