February 21, 2018 7:20pm

Sector intelligence and perspective

 

Right again …

As I stated, “Sit and wait … for a melt-up of the oversold but, not all are due for a rise”

Pre-open indication results: 5 hits and 3 miss (1 by pennies)

 

Out and about: Celgene Corporation (CELG) announced that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR") with respect to the previously announced tender offer by Celgene’s wholly owned subsidiary, Blue Magpie Corporation, for all issued and outstanding shares of common stock of Juno Therapeutics, Inc. (JUNO) for $87.00 per share. More …

 

 

Review of advance/decline lines of 40 covered companies; my working trend lines; daily analytics and the % count of decliners versus gainers

Wednesday’s results have implications to Thursday’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, “… yesterday churned on low volume as the sector was in a rut with damage to the downside and still will be … Sit and wait … for a melt-up of the oversold but, not all are due for a rise.”

All three benchmarks experienced brisk reversals in the afternoon, about an hour before the regular trading session ended and an hour after the FOMC minutes were released.

Recent trading has been marked by volatility, with sector equities posting sharp swings, luckily to the upside.  Bottom line, the sector was oversold!

 

Pre-open indication results: 5 hits and 3 miss

  • AxoGen (AXGN) closed up +$0.75 – miss;
  • bluebird bio (BLUE) closed up +$1.95 – hit;
  • Bellicum Pharmaceuticals (BLCM) closed down -$0.31 – hit;
  • Fate Therapeutics (FATE) closed up +$1.42 – miss;
  • Regenxbio (RGNX) closed up +$0.65 – hit;
  • Sangamo Therapeutics (SGMO) closed down -$0.05 – miss;
  • Spark Therapeutics (ONCE) closed up +$1.11 – hit;
  • Stemline Therapeutics (STML) closed up +$0.75 – hit;

 

Out and about:  Celgene Corporation (CELG) announced that the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR") with respect to the previously announced tender offer by Celgene’s wholly owned subsidiary, Blue Magpie Corporation, for all issued and outstanding shares of common stock of Juno Therapeutics, Inc. (JUNO) for $87.00 per share, net to the seller in cash, without interest and less required withholding taxes, and subsequent merger of Blue Magpie with Juno, expired at 11:59 p.m. ET on February 20, 2018. The expiration of the HSR waiting period satisfies one of the conditions to the closing of the pending acquisition, which remains subject to other customary closing conditions. Celgene expects the transaction to close in the first quarter of 2018. The tender offer is scheduled to expire at midnight ET on March 2

 

The advance/decline line scenario of 40 SCGT & RT covered companies:   

·         The open was positive with an A/DL of 22/16 and 2 flat ;

·         The mid-day continued positive with an A/DL of 29/8 and 3 flat;

·         The close was positive  with an A/DL of 24/13 and 3 flat;

 

MY working trend lines:

… The greatest volume to the downside:  SGMO, BLCM, ONVO, VCEL and VSTM

… Upside volume was weighted to:  JUNO, MDXG, ADVM, FATE and IMUC

… Biggest $ downside:  RENE.L (-$11.00), BLCM (-$0.31), CUR (-$0.14), VSTM (-$0.10) and HSGX (-$0.09)

… Largest $ upside:  BLUE (+$1.95), JUNO (+$11.66), FATE (+$1.42), ONCE (+$1.11) and QURE (+0.83

… Flat: AST, ISCO and ADRO

 

 

Daily analytics:

U.S. stocks on Wednesday ended a tumultuous session firmly lower after minutes from the Federal Reserve’s most recent policy-setting meeting sparked a fresh wave of volatility, as bond rates clambered higher and the dollar strengthened, weighing on equities.

·         The Dow lost 166.97 points, or 0.7%, to 24,797.78.

·         The S&P 500 index fell 14.93 points to 2,701.33, a drop of 0.6%.

·         The NASDAQ shed 16.08 points, or 0.2%, to 7,218.23.

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market, Wednesday traded at 20.22, down -2.82% …

·         Tuesday traded at 20.60, up +5.86% …

·         Monday was a market holiday

·         Friday traded 19.46, up +1.73% …

·         Thursday traded at 19.07, down -0.99% …

·         Last Wednesday traded at 19.22, down -23.03% …

 

Welcome to another day of the sector’s roller coaster …

… The iShares Russell 2000 (IWM) indicated:

·         Wednesday was up +0.09%

·         Tuesday was down -0.83%

·         Monday was a market holiday

·         Friday was up +0.36%

·         Thursday was up +1.07%

·         Last Wednesday was up +1.82%

 

… The iShares NASDAQ Biotechnology (IBB) indicated:

·         Wednesday was down -0.16%

·         Tuesday was down -1.01%

·         Monday was a market holiday

·         Friday was down -0.37%

·         Thursday was up +0.94%

·         Last Wednesday was up +2.04%

 

 

The count - decliners versus gainers:

……. look at the differences in decliners:

·         Wednesday’s decliners ranged from -0.15% <BSTG -$0.00> to -10.63% <RENE.L> in 13 equities;

·         Tuesday’s decliners ranged from -0.14% <JUNO -$0.12> to -39.53% <MDXG -$5.72> in 26 equities;

·         Monday was a market holiday

·         Friday’s decliners ranged from -0.31% <STML -$0.05> to -% <CAPR -$0.15> in 17 equities;

·         Thursday’s decliners ranged from -0.38% <BTX -$0.01> to -10.13% <BSTG -$0.31> in 16 equities;

·         Last Wednesday’s decliners ranged from -0.15% <FCSC -$0.001> to -12.42% <ATHX -$0.20> in 10 equities;

Versus

… Look at the percentage’s (%) and spreads …

·         Wednesday’s gainers ranged from +0.08% <XON +0.01> to +15.49% <FATE +$1.42> in 24 equities;

·         Tuesday’s gainers ranged from +0.39% <FCSC +$0.0026> to +4.70% <BLCM +$0.31> in 12 equities;

·         Monday was a market holiday;

·         Friday’s gainers ranged from +0.12% <QURE +$0.03> to +10.55% <BLCM +$0.63> in 18 equities;

·         Thursday’s gainers ranged from +0.63% <STML +$0.10> to +3.55% <ATHX +$0.05> in 20 equities;

·         Last Wednesday’s gainers ranged from +0.75% <RGNX +$0.20> to +15.74% <CYTX +$0.048> in 27 equities;

                                  

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.