October 30, 2017 6:26pm
As the IBB (+0.17%) and XBI (+0.30%) settle to the upside
Sentiment is weighing to the downside related to upcoming quarterly releases that will focus on spending and cash positions highlighting those who need capital market access
Pre-open indications: 5 hits and 6 miss (3 by pennies)
How right does one have to be? You could and should be reading this review of the day’s share pricing activity?
What’s the gauge of pricing expectation – monetization of information! Monday’s results have implications to Tuesday’s sector activity as a daily report may say little or a lot and it serves as insurance that all indications are being examined and evaluated!
Henry’omics:
From the pre-open’s newsletter, “don’t get agitated, momentum is fickle and sensitive to sector and market conditions … except when it isn’t (sarcasm).”
Markets generally didn’t care about political drama, today’s selloff is probably more about the fact that we were up big on Friday!
While the IBB and XBI were up, the macro health-care sector took a particular hit, with a popular gauge of the industry, the Health Care Select Sector SPDR XLV, falling 1.2% for its worst single-day decline since Aug. 17.
Meanwhile, one measure of implied volatility, the CBOE Volatility Index (VIX +7.14%) , which tracks options bets on the S&P 500 index 30 days into the future, has been hovering around historic lows around 10.
That represents about half the index’s historical average.
The so-called VIX tends to move inversely to stocks, falling as they rise, and is often used as a gauge of expected volatility in the market because stocks fall faster than they climb.
Investor complacency will keep the sector as related to its market position off guard anticipating another tumble!
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The open was positive with an A/DL of 23/15 and 5 flats;
· 11:30 am flipped negative with an A/DL of 15/27 and 1 flat;
· The mid-day was negative with an A/DL of 12/28 and 3 flats;
· The close was negative with an A/DL of 13/28 and 2 flats;
Pre-open indications: 5 hit and 6 miss
- AxoGen (AXGN) closed up +$0.02 – miss;
- BioLife Solutions (BLFS) closed down -$0.26 – miss;
- bluebird bio (BLUE) closed up +$0.80 – miss;
- Cellectis SA (CLLS) closed up +$0.76 – miss;
- Cytori Therapeutics (CYTX) closed down -$0.02 – hit;
- Fate Therapeutics (FATE) closed up +$0.07 – miss;
- Mesoblast (MESO) closed down -$0.16 – miss;
- Pluristem (PSTI) closed down -$0.29 – hit;
- Regenxbio (RGNX) closed up +$0.10 – hit;
- Spark Therapeutics (ONCE) was down -$1.36 – hit;
- uniQure (QURE) closed up +$0.04 – hit;
Some of MY working trend lines or indications:
… The greatest volume to the downside: PSTI, IMUC, XON, CYTX and ONVO
… Upside volume was weighted to: MDXG, JUNO, SGMO, NWBO and QURE
… Biggest $ downside: ONCE (-$1.36), XON (-$0.31), PSTI (-$0.29), FCSC (-$0.27) and BLFS (-$0.26)
… Largest $ upside: BLUE (+$0.80), CLLS (+$0.76), JUNO (+$0.57), MDXG (+$0.30) and SGMO (+$0.20)
… Flat: RENE.L and KOOL
Daily analytics:
U.S. stocks closed lower Monday as a report that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately weighed on investors’ confidence.
· The Dow shed 85.45 points, or 0.4%, to 23,348.74.
· The S&P 500 index closed down 8.24 points, or 0.3%, at 2,572.83.
· The NASDAQ set a fresh intraday record, but slid 2.30 points to 6,698.96.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Monday traded at 10.50, up +7.14% …
- Friday traded 9.80, down -13.27% after Thursday traded at 11.33, up +0.90% after Wednesday traded at 11.27, up +0.63% after Tuesday traded at 11.10, up +0.27% and last Monday traded at 10.87, up +9.03% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Monday was down -1.06%
· Friday +0.68%
· Thursday +0.21%
· Wednesday -0.47%
· Tuesday +0.20%
· Last Monday -0.74%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Monday was up +0.17%
· Friday +0.68%
· Thursday -2.32%
· Wednesday -1.14%
· Tuesday -0.78%
· Last Monday -1.22%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %
· Monday’s decliners ranged from -0.60% <ADRO -$0.05> to -11.72% <PSTI -$0.29> in 28 equities;
· Friday’s decliners ranged from -0.30% <CYTX -$0.0013> to -12.37% <VTGN -$0.13> in 12 equities;
· Thursday’s decliners ranged from -0.25% <AXGN -$0.05> to -9.45% <CYTX -$0.049> in 27 equities;
· Wednesday’s decliners ranged from -0.23% <STML -$0.02> to -13.37% <BLFS -$0.92> in 30 equities;
· Tuesday’s decliners ranged from -0.95% <FATE -$0.04> to -8.28% <MDXG -$1.02> in 28 equities;
· Last Monday’s decliners ranged from -0.76% <KOOL -$0.03> to -11.37% <MDXG -$1.58> in 24 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Monday’s gainers ranged from +0.25% <AXGN +$0.05> to +0.30% <MDXG +$0.30> in 13 equities;
· Friday’s gainers ranged from +0.30% <NWBO +$0.005> to +6.82% <FATE +$0.29> in 29 equities;
· Thursday’s gainers ranged from +0.51% <KOOL +$0.02> to +6.78% <FATE +$0.27> in 10 equities;
· Wednesday’s gainers ranged from +0.09% <NWBO +$0.0001> to +9.09% <CAPR +$0.20> in 11 equities;
· Tuesday’s gainers ranged from +0.60% <ISCO +$0.01> to +% <PSTI +$0.16> in 10 equities;
· Last Monday’s gainers ranged from +0.61% <ISCO +$0.01> to +11.31% <BSTG +$0.009> in 15 equities;
A start to the week’s work:
ATHX closed down -$0.05 after Friday’s +$0.07 … there are even MORE questions re their cash position going. Be ready for an offering…
CAPR closed down -$0.02 after Friday’s +$0.08 - CAPR can’t keep fooling investors with their brand of hype – it will run down over the next days and weeks, their recent presentation announcement went out too early;
CLBS closed down -$0.10 after Friday’s +$0.12– I keep hearing stories about why they can’t get out of their own way … VTGN closed down again -$0.03 after Friday’s -$0.126– ketamine is a horse drug?;
VCEL was up +$0.05 after Friday’s -$0.15– still believe VCEL will announce an offering … while AXGN closed up +$0.05 after being flat at $20.10 … the merry-go-round turns – I’m betting on a downside; MDXG was up +$0.30 after Friday’s -$0.08 on news of a profitable Q3, as I said stay in, right again;
HSGX closed up +$0.03 after Friday’s -$0.04 … I like the company i.e. still undervalued;
SGMO regain more altitude +40.20 after Friday’s +$0.38 while ONCE was down -$1.36 after Friday’s up +$3.38 – on my list as a favorite yet travels oversold, overbought – pick the day;
BLUE was up again +$0.80 after Friday’s +$4.20 … a soccer ball score or miss;
AGTC was down -$0.10 after Friday’s closed flat at $3.80 … can’t escape the basement … is management is deaf to stockholders?
RGNX closed up again +$0.10 after Friday’s +$0.15 … I keep telling you to stay, right again;
Cellectis S.A. (CLLS) closed up again +$0.76 after Friday’s +$1.17 … if you stay on the merry-go-round, don’t wait for the music to stop – take profit when can;
AST was down -$0.05 after Friday’s +$0.05 while mothership BTX was up again +$0.02 after Friday’s +$0.01 … both financed to prop their balance sheets
Immuno-oncologists - JUNO closed up again +$0.57 after Friday’s +$2.17; as VSTM closed down -$0.10 after Friday’s +$0.21– up, down, round and round;
STML closed down -$0.25 after Friday’s +$0.48 – splitting the difference; while ADRO closed down -$0.05 after Friday’s +$0.05 as BLCM closed up again +$0.15 after Friday’s +$0.26 … it’s a ride with not much expectation in the wind;
FATE closed up again +$0.07 after Friday’s +$0.29 – is an offering in the near future?
MESO was down again -$0.16 after Friday’s -$0.07– still waiting for some news, as I had stated time to be accumulating on dips…
PSTI was down -$0.29 after Friday’s +$0.05– on news of a TASE offering!
QURE closed up +$0.04 after Friday’s– after an $18.25 offering closed …
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.
