October 17, 2017 6:39pm
ETF exposure is dangerous to sector share pricing
Due to inefficient value rating
But they do trade a lot easier and liquidly
Pre-open indications: 4 hit and 2 miss (by pennies)
In the grip of rotating cycles and disparaging trends, what is the price of sector equities - knowledge and a subscription!
The way forward cannot be found in the practices and spending of the past as the sector is operating and defined by its own contradictions.
Tuesday’s results have implications to Wednesday’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 battle of the oversold versus the overbought - on which side is your allegiance? The oversold need to take the field, unleash their buyers and advance their territory.”
- My thematic, “The issue is who are the active investors – now? This population has greatly changed today as the bulk of investors are more likely retail in the development stages of “our” universe.”
Today’s trading has had an upside bias, although daily moves have been slight. Both the Dow and the S&P have risen for three straight sessions, as well as in five of the past six days.
The advance/decline line scenario of 43 SCGT & RT covered companies:
· The open was positive with an A/DL of 22/16 and 5 flats;
· The first (10:20) hour was negative with an A/Dl of 13/21 and 7 flats;
· The mid-day was negative with an A/DL of 16/23 and 4 flats;
· The close was barely positive with an A/DL of 20/19 and 4 flat;
Pre-open indications: 4 hit and 2 miss
- Athersys (ATHX) closed down -$0.05 – hit;
- bluebird bio (BLUE) closed down -$3.10 – hit;
- Brainstorm Cell Therapeutics (BCLI) closed down - $0.13 – miss;
- Capricor (CAPR) closed up +$0.10 – miss;
- Juno Therapeutics (JUNO) closed up +$0.16 – hit;
- MiMedx (MDXG) closed up +$0.31 – hit;
Some of MY working trend lines or indications:
… The greatest volume to the downside: SGMO, ATHX, HSGX, BLUE and BSTG
… Upside volume was weighted to: MDXG, JUNO, IMUC, ONVO and XON
… Biggest $ downside: BLUE (-$3.10), ONCE (-$2.45), RGNX (-$1.20), STML (-$0.50) and SGMO (-$0.35)
… Largest $ upside: MDXG (+$0.31), BLFS (+$0.28), JUNO (+$0.16), ADRO (+$0.15) and CAPR (+$0.10)
… Flat: KITE, RENE.L, NWBO and PSTI
The week’s patterns, so far:
Biostage (BSTG) is basically defunct at $0.08 – Is there a “Weinstein” component and back-story in their crash as one reason of more than two female employee departures – TOO many stories are leaking post layoffs?
CAPR closed up +$0.10 after being down -$0.07 to $2.69 - CAPR can’t keep fooling investors with their brand of hype …
CLBS dumped another -$0.09 after yesterdays -$0.06 – I keep hearing stories about why they can’t get out of their own way … along with VTGN -$0.04;
VCEL was down again -$0.10 after Monday’s -$0.15 – still believe is on an Icarus flight path … while AXGN was up another +$0.05 … the merry-go-round turns – I’ll ride the moving horse and MDXG is regaining altitude +$0.31 after yesterday’s +$0.33 as short sellers made a stupid play; while HSGX closed down again -$0.07 after Monday’s -$0.06 after being up a number of sessions … I like the company i.e. still undervalued …
SGMO was down again -$0.35 after yesterday’s -$0.10 while ONCE was down -$2.56 after being up +$1.30, as BLUE feels the pain of -$3.10 after the gain of $11.60 … a soccer ball score; AGTC was up +$0.05 after being down -$0.05 … AGTC can’t escape the basement … is management is deaf, dumb or blind? RGNX was down -$1.20 after being up +$0.25 … I keep telling you to stay! Cellectis S.A. (CLLS) zipped +$0.06 after slipping -0.19 … if you stay on the merry-go-round, don’t wait for the music to stop;
AST was down -$0.10 after being up +$0.05 while mothership BTX was down again -$0.01 after Monday’s -$0.03 … they AST NEEDS cash to as BTX did with an offering to prop their balance sheets
Immuno-oncologists - JUNO was up +$0.16 after being down -$0.02; as VSTM dumped another -$0.06 after Monday’s -$0.14 and STML was down huge -$0.50 after being down -$0.10 at $11.60; while ADRO jumped again +$0.15 after yesterday’s +$0.25 as BLCM jumped +$0.09 after having dived -$0.22 …
ATHX was down again -$0.05 after Monday’s -$0.07 … now, there are even MORE question re their cash position going forward as their clinical “manufacturing” batch issues and patent might be solved but, how are they going to pay for the future?
FATE was up again +$0.02 after yesterday’s +$0.01 – hang in;
MESO was down again -$0.24 after Monday’s -$0.13– as I had stated time to be accumulating on dips…
PSTI was flat after being up +$0.08 to $1.79 - wait for the downside signal… it always comes!
Daily analytics:
U.S. stocks ended mostly higher on Tuesday, with both the Dow and the S&P 500 finishing at records as a round of positive earnings reports from major companies boosted positive sentiment and extended the recent uptrend.
- The Dow closed up 40.48 points, or 0.2%, at 22,997.44. The blue-chip average hit a record of 23,002.20 in midday trading, the first time in history it broke above that psychologically important level.
- The S&P 500 index rose 1.72 points to 2,559.36, a gain of less than 0.1%.
- The NASDAQ edged lower by less than half a point, ending at 6,623.66.
The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market; Tuesday traded at 10.31, up +4.04% …
- Monday traded at 9.92, up +3.23% after Friday traded at 9.61, down -3.03% after Thursday at 9.91, up +0.61%, Wednesday traded at 9.83, down -2.48% and last Tuesday traded at 10.08, down -2.42% …
Welcome to another day of the sector’s roller coaster …
… The iShares Russell 2000 (IWM) indicated:
· Tuesday was down -0.29%
· Monday -0.07%
· Friday -0.17%
· Thursday -0.07%
· Wednesday -0.09%
· Last Tuesday+0.27%
… The Russell 2000 (RUT)
· Tuesday lost -5.18 or -0.34%
· Monday gained +0.02 or 0.00%
· Friday lost -2,51 or -0.17%
· Thursday lost -1.76 or -0.12%
· Wednesday lost -1.08 or -0.07%
· Last Tuesday was gained +4.44 or +0.30%
… The iShares NASDAQ Biotechnology (IBB) indicated:
· Tuesday was up +0.38%
· Monday +0.14%
· Friday -0.22%
· Thursday -0.52%
· Wednesday -0.21%
· Last Tuesday +0.03%
The count - decliners versus gainers:
……. look at the differences in the spreads as decliners jump and %
· Tuesday’s decliners ranged from -0.38% <BTX -$0.01> to -% <STML -$0.50> in 19 equities;
· Monday’s decliners ranged from -0.05% <JUNO -$0.02> to -8.53% <BSTG -$0.0081> in 29 equities;
· Friday’s decliners ranged from -0.08% <MDXG -$0.01> to -17.18% <BSTG -$0.02> in 32 equities;
· Thursday’s decliners ranged from -0.54% <BLFS -$0.03> to -15.13% <CYTX -$0.084> in 23 equities;
· Wednesday’s decliners ranged from -0.44% <JUNO -$0.19> to -9.84% <BSTG -$0.01> in 26 equities;
· Last Tuesday’s decliners ranged from -0.42% <XON -$0.08> to -12.82% <ONVO -$0.25)> in 19 equities;
Versus
… Look at the percentage’s (%) and spreads …
· Tuesday’s gainers ranged from +0.21% <CLLS +$0.06> to +0.28% <BLFS +$0.28> in 20 equities;
· Monday’s gainers ranged from +0.03% <IMUC +$0.0001> to +11.86% <QURE +$1.27> in 11 equities;
· Friday’s gainers ranged from +0.90% <NWBO +$0.0015> to +4% <ONVO +$0.06> in 9 equities;
· Thursday’s gainers ranged from +0.19% <JUNO +$0.08> to +10.43% <HSGX +$0.22> in 16 equities;
· Wednesday’s gainers ranged from +0.24% <MDXG +$0.03> to +15.24% <PSTI +$0.25> in 14 equities;
· Last Tuesday’s gainers ranged from +0.11% <BLUE +$0.15> to +10.02% <MESO +$0.61> in 23 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.
