August 7, 2018 6:47pm

With volume remaining very low – there’s always an element of danger

MY concern is the VIX …

Traders ride on the forward face of momentum waves, which usually moves towards the shore; what if riptides or an algorithms sap the currents?

 

Pre-open indications: 6 hit and 2 miss

Closing numbers, Q2/18 earnings reporting: Athersys (ATHX +0.05), CRISPR Therapeutics (CRSP +$0.21), Sage Therapeutics (SAGE +$3.61), Ionis Pharmaceuticals (IONS +$0.55), Bellicum Pharmaceuticals (BLCM +$0.21), Spark Therapeutics (ONCE -$21.60), Audentes Therapeutics (BOLD -$3.73) and Voyager Therapeutics (VYGR -$0.12)

 

Consider these end-of-day results as Wednesday’s primer. Every investor should want to know WHY, WHAT, HOW and WHEN to roll in and out?

Another freebee, remember a “buck” a day keeps your portfolio in the play - should have read the pre-open - subscribe …

Never leave an investor uninformed!  

Henry’omics:

From the pre-open newsletter: “far from the finish line although the post release and aftermarket indications are improving!”

This week’s earnings has been reasonably good – for this Q and what's important is the cash positions not fundamentals or LPS (loss-per-share) counts justifying many share pricing rebounds!

When you think about what's driving the sector right now, it's a tug of war between LPS (loss-per-share) numbers and going forward – runways with solid cash positions!

Reading through the markets, “The S&P's tracks the small capitalization and mid-cap stocks that have broken out to new highs. The S&P 500 was up 0.4% in afternoon trade, and needed to rise another 0.4% to pass the 1/26/18 record close of 2,872.87.

The S&P Small Cap 600 (SML) tacked 0.2% and headed for a new record. The Russell 2000 Index of small cap stocks (RUT +0.24%) was up 0.3%, but needed to climb another 1.1% to reach the 6/20/18 record close of 1,706.98.

 

Daily analytics and metrics:

  • The S&P 500 rose 0.3% or + points to 2,858.45,
  • The Dow gained 126.73 points to 25,628.91,
  •  The NASDAQ advanced 0.3% to 7,883.66

 

An indicator of sentiment is the question answered:  “Who reported yesterday and was oversold and heading to a possible rebound? 2 ups and 1 down:

  • Vericel (VCEL) closed up +$2.55;
  • Fate Therapeutics (FATE) closed up +1.14;
  • Editas Medicine (EDIT) closed down -$0.26 - deserved

 

Of the 45 companies covered on Tuesday; 14 downside equities finished in a range of -$0.001 (KOOL) to -$21.60 (ONCE) while the 29 upside equities oscillated from +$0.01 (PSTI) to $7.77 (BMRN) with 2 flat close (BCLI and ONVO).

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 25/16 and 14 flats;
  • The mid-day strayed neutral with an A/DL of 21/12 and 3 flats;
  • The close was positive with an A/DL of 29/14 and 2 flats;

 

Pre-open to close indications: 6 hits and 2 miss:

  • Athersys (ATHX) closed up +$0.05 – miss;
  • Ions Pharmaceuticals (IONS) closed up +$0.55 – miss;
  • Alnylam Pharmaceuticals (ALNY) closed up +$0.81 – hit;
  • CRISPR Therapeutics (CSP) closed up +$0.21 – trade, hit;
  • Editas Medicine (EDIT) closed down -$0.26 – trade, hit;
  • Intellia Therapeutics (NTLA) closed up +$0.84 – trade, hit;
  • Spark Therapeutics (ONCE) closed up +$21.60 – hit;
  • Vericel (VCEL) closed up +$2.55 – hit;

 

Volume (by the numbers) was LOW with some anomalies:

  • Volume to the upside = ALNY, FATE, IONS, SAGE, VCEL and BMRN
  • Volume to the downside = BOLD and ONCE

 

MY working trend (5 largest) lines:

… The greatest volume to the downside:  ONCE, EDIT, BOLD, BTX and ADRO

… Upside volume was weighted to:  VCEL, BMRN, MDXG, IONS and XON

… Leadership ($) to the downside:  ONCE (-$21.60), BOLD (-$3.73), RENE.L (-$1.00), CLLS (-$0.38) and OSIR (-$0.33)

… Best moves ($) to the upside:  BMRN (-$7.77), BLUE (+$4.45), SAGE (+$3.61), VCEL (+$2.55) and RARE (+$1.93)

… Flats:  ONVO and BCLI

 

August, the weekly count - decliners versus gainers – looks at the percentage (%) view from a different angle:

……. look at the differences in decliners:

  • Tuesday’s decliners ranged from -0.26% <KOOL -$0.001> to -27.83% <ONCE -$21.60> in 14 equities;
  • Monday’s decliners ranged from -0.31% <MESO -$0.02> to -6.09% <CUR -$0.07> in 19 equities;
  • Friday’s decliners ranged from -0.67% <XON -$0.10> to -9.77% <RARE -$7.78> in 37 equities;
  • Thursday’s decliners ranged from -0.96% <SLDB -$0.39 > to -15.23% <AXGN -$7.05 > in 16 equities;
  • Wednesday’s decliners ranged from -0.48% <BCLI -$0.02 > to -6.84% <ADRO -$0.40 > in 23 equities;

Versus

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

  • Tuesday’s gainers ranged from +0.43% < CRSP +$0.21> to +25% <VCEL +$2.55> in 29 equities;
  • Monday’s gainers ranged from +0.07% <IONS +$0.03 > to +6.25% <MDXG +$0.26 > in 24 equities;
  • Friday’s gainers ranged from +1.26% <HSGX +$0.03 > to +6.64% <GBT +$2.90 > in 4 equities;
  • Thursday’s gainers ranged from +0.27% <EDIT +$0.07 > to +9.25% <FATE +$0.89 > in 27 equities;
  • Wednesday’s gainers ranged from +0.23% <FIXX +$0.04> to +7.89% < FATE +$0.70> in 21 equities;

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market:

  • Tuesday traded at 10.93, down -3.02%
  • Monday traded at 11.27, down -3.18%
  • Friday traded at 11.64, down -4.51%
  • Thursday traded at 12.21, up +12.15%
  • Wednesday traded at 13.15, up +2.49%

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Tuesday was up +1.23%
  • Monday was down -0.20%
  • Friday was down -0.75%
  • Thursday was up +0.75%
  • Wednesday was up +0.58%

 

August sessions:

Tuesday closed POSITIVE with 14 decliners, 29 advancers and 2 flat;

Monday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Friday closed NEGATIVE with 37 decliners, 4 advancers and 4 flat;

Thursday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;

Wednesday (8/1) closed NEGATIVE with 23 decliners, 21 advancers and 1 flat;

 

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.