December 4, 2017 6:28pm
As the sector’s upside grinds down at the 10:30 a.m. mark while the market soars and the NASDAQ lags
Once again, I say, “risk is a four letter expletive; investors need to understand the risk/reward ratio but, more to their exposure
Net-net, this could be about a bad taste of share pricing volatility and maybe more about end of year selling
Pre-open indications: 2 hits and 0 miss
Out and about: a follow-up, Why are all the lights out at Biostage (BSTG)?
How right does one have to be? You could and should be reading this review of the day’s share pricing activity?
Is the truth so hard to fathom – that’s why my readership has grown exponentially!
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, “… the blindside! Last week, the sector took a dive, but it could catch the bid if … a new week drives momentum and traders continue to “lean” on speculation. Although expectation is suspect as the oversold are incubating waiting for those considered overbought to be exploited.”
As I stated, “I’m still nervous about all the upside with all the geopolitics, tax reform and political issues but, the bottom line issue is the credibility of the news that is presented to investors. Real issues of spending, operating G&A, the oversight of the board which is usually jeopardized from the beginning by the “independence” moniker of friendly “buddies” of the management team.”
Also, as I had stated, “We've kind of gotten use to the drama in the sector but, what will cure the “believability” disease that is spreading through the retail and individual investor base!”
And I read in Investor’s Business Daily, “ … it’s a delicate dance with Wall Street and regulators – balancing public health issues with the demands of shareholders. Investors will find it tricky to navigate the sector, as companies can rise and fall at the drop of a hat.”
The advance/decline line scenario of 40 SCGT & RT covered companies:
· The open was positive with an A/DL of 21/18 and 1 flat ;
· 10:30 a.m. flipped negative with an A/DL of 18/22 and 2 flats;
· The mid-day continued negative with an A/DL of 15/22 and 3 flats;
· The close was negative with an A/DL of 7/32 and 1 flat;
Pre-open indications: 2 hits and 0 miss
- Biostage (BSTG) closed down -$0.0037 – hit;
- Capricor (CAPR) closed down -$0.06 – hit;
MY working trend lines or indications:
… The greatest volume to the downside: NWBO, PNVO, JUNO, XON and CYTX
… Upside volume was weighted to: SGMO, MDXG, VCEL, RENE.L and AXGN
… Biggest $ downside: BLUE (-$8.80), JUNO (-$2.04), ONCE (-$1.44), RGNX (-$1.10) and CLLS (-$0.87)
… Largest $ upside: VCEL (+$0.35), OSIR (+$0.34), AXGN (+$0.30), SGMO (+$0.10) and MDXG (+$0.04)
… Flat: HSGX
Daily analytics:
The Dow closed at a record Monday as investors cheered the weekend passage of the Senate version of a sweeping overhaul of the U.S. tax code.
· The Dow added 58.46 points, or 0.2%, to finish at 24,290.05, closing well off its intraday high.
· The S&P 500 which had traded higher for most of the session, lost grip on positive territory late in the session. The large-cap index shed 2.78 points, or 0.1%, to end at 2,639.44
· The NASDAQ fell 72.22 points, or 1.1%, to 6,775.37, its losses deepening near the close.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Monday traded at 11.68, up +2.19% after …
- Friday traded at 11.43, up +1.33% after Thursday traded at 11.28, up +5.42% after Wednesday traded at 10.70, up +6.68%, Tuesday traded at 10.03, up +1.62% and last Monday traded at 9.87, down 00.10% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Monday was down -0.39%
· Friday -0.66%
· Thursday +0.18%
· Wednesday +0.34%
· Tuesday +1.57%
· Last Monday -0.31%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Monday was down -1.58%
· Friday +0.42%
· Thursday +1.44%
· Wednesday -0.01%
· Tuesday +0.28%
· Last Monday -0.70%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %
· Monday’s decliners ranged from -0.34% <KOOL -$0.01> to -8.67% <NWBO -$0.0247> in 32 equities;
· Friday’s decliners ranged from -0.09% <MDXG -$0.01> to -6.16% <FCSC -$0.09> in 23 equities;
· Thursday’s decliners ranged from -0.05% <ONCE -$0.04> to -11.80% <BSTG -$0.0080> in 11 equities;
· Wednesday’s decliners ranged from -0.39% <AXGN -$0.10> to -12.33% <NWBO -$0.04> in 22 equities;
· Tuesday’s decliners ranged from -0.19% <AXGN -$0.05> to -10.29% <KOOL -$0.36> in 23 equities;
· Last Monday’s decliners ranged from -0.03% <BLUE -$0.05> to -11.18% <BSTG -$0.01> in 29 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Monday’s gainers ranged from +0.35% <MDXG +$0.04> to +7.78% <VCEL +$0.35> in 7 equities;
· Friday’s gainers ranged from +0.51% <ATHX +$0.01> to +11.46% <BSTG +$0.01> in 16 equities;
· Thursday’s gainers ranged from +0.26% <JUNO +$0.14> to +15.03% <VSTM +$0.55> in 28 equities;
· Wednesday’s gainers ranged from +0.21% <BLCM +$0.02> to +13.74% <BSTG +$0.008> in 19 equities;
· Tuesday’s gainers ranged from +0.20% <CLLS +$0.05> to +5.79% <MDXG +$0.63> in 15 equities;
· Last Monday’s gainers ranged from +0.71% <FATE +$0.03> to +17.24% <FCSC +$0.25> in 11 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.
