Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: the thundering indexes rolled-up the oversold

October 16, 2018 5:35pm

Pre-open indications: as I stated BUY as NOT every equity in MY coverage deserved to be UP (4 down and 2 flat)

Out and about: BioMarin Pharmaceutical (BMRN +$) earned $15 million in milestone payments from Pfizer (PFE). These milestone payments were triggered by the (FDA’s approval of Talzenna® (talazoparib) for the treatment of adult patients with deleterious or suspected deleterious germline BRCA (gBRCA)-mutated, HER2-negative locally advanced (LA) or metastatic breast cancer (MBC). These milestone payments are part of an agreement made with Medivation when it was acquired by Pfizer.

RMi puts the facts into evidence for the metrics to speak; my motto, “Never leave an investor uninformed”!

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

Daily analytics and metrics:

The Dow traded up +547.87 points or +2.17% to 25,798.42
The S&P closed up +59.13 points or +2.15% to 2,809.92
The NASDAQ closed up +214.74 points or +2.89% to 7,645.49

The advance/decline line scenario of 45 covered companies:

The open was positive with an A/DL of 36/6 and 3 flats;
The mid-day was positive with an A/DL of 40/4 and 1 flat;
The close was positive with an A/DL of 39/4 and 2 flats;

Five (5) key metrics:

… The greatest volume to the downside: HSGX, VSTM, MDXG, CRSP and XON

… Upside volume was weighted to: AST, CUR, BCLI and CLBS

… Leadership ($) to the downside: BCLI (-$0.07), CUR (-$0.96) and AST (-$0.05)

… Best moves ($) to the upside: BMRN (+$6.56), BLUE (+$5.73), RARE (+$4.37), SAGE (+$4.23) and CRSP (+$3.70)

… The iShares NASDAQ Biotechnology (IBB) closed:

Tuesday was up +4.23% after indicating a POSITIVE +0.85% in the pre-market;
Monday was down -1.04% after indicating a NEGATIVE -0.79% in the pre-market;
Friday was up +1.99 % after indicating a POSITIVE +1.49% in the pre-market;
Thursday was down -2% after indicating a NEGATIVE -0.96% in the pre-market;
Wednesday was down -3.32% after NOT indicating in the pre-market;
Last Tuesday was down -0.45% after indicating a NEGATIVE -0.04% in the pre-market;

Henry’omics:

The rebound was expected after our universe of Humpty Dumpty equities fell-off the wall and all the algorithms, traders, dark pools and indexes were able to PATCH-UP Humpty.

I don’t want to deflate the balloon of euphoria but, Q3 LPS (loss-per-share) earnings results start on 10/25.

Not a spoil-sport yet … I’d be still be defensive with fewer offensive BUYs until “earnings” show their pricing effects.

The major large-cap indexes all had their best day since March. The Russell 2000 index, which tracks small-cap stocks, jumped 2.8% and had its best day since Nov. 9, 2016 following the NASDAQ falling 3.7% last week.

REMEMBER … volatility has provided a powerful lesson on the true meaning of risk tolerance!

Of the 45 companies covered on Tuesday; 4 downside equities finished in a range of -0.87% (CLBS) to -5.77% (CUR) while 39 upside equities oscillated from +0.57% (MDXG) to +10.31% (CRSP) with a 2 flat close (ONVO and RENE.L).

Volume has been increasing … look at the depth – 18 out of 39 of the upside had higher (than the 3 month average) volume while the downside experienced 3 having greater volume (than the 3 month average) out of 4.

From the pre-open newsletter: “the IBB has risen +0.79%. Value of the oversold should follow the upside spiral. That said … NOT every equity in MY coverage deserves to be UP but, the herd mentality will push many “undeserved” upward!”

October sessions:

Tuesday closed POSITIVE with 4 decliners, 39 advancers and 2 flats;

Monday closed NEGATIVE with 26 decliners, 17 advancers and 2 flats;

Friday closed POSITIVE with 9 decliners, 35 advancers and 1 flat;

Thursday closed NEGATIVE with 38 decliners, 7 advancers and 0 flat;

Wednesday closed NEGATIVE with 42 decliners, 2 advancers and 1 flat;

Tuesday closed NEGATIVE with 23 decliners, 18 advancers and 4 flats;

Monday closed NEGATIVE with 34 decliners, 10 advancers and 1 flat;

Friday closed NEGATIVE with 26 decliners, 17 advancers and 2 flat;

Thursday closed NEGATIVE with 35 decliners, 8 advancers and 2 flat;

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

Tuesday closed NEGATIVE with 32 decliners, 12 advancers and 1 flat

Monday (10/1) closed NEGATIVE with 33 decliners, 13 advancers and 1 flat;

In 19 sessions in September – there were 10 negative closes and 9 positive close;
In 21 August sessions – 6 had negative and 15 had positive closes

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.