October 2, 2018 6:06pm

NASDAQ is barely up while Dow overheats …

As I had stated, “Is it risk, sentiment or just plain volatility and time to skim any upside from sector participants?”

How about sector fatigue and the lack of support?

 

Pre-open indications: 6 HITs and 3 MISS

The 6 W’s: Who, what, where, when, why and what of it … RMi puts the facts into evidence for the metrics to “speak”! 

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 closed up +122.73 points or +0.46% to 26,773.94
  • The S&P closed down -1.16 points or -0.04% to 2,923.43
  • The NASDAQ closed down -37.76 points or -0.45% to 7,999.55

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 13/32 and 0
  • 2nd hour continued negative with an A/DL of 10/34 and 1 flat;
  • The mid-day was negative with an A/DL of 9/33 and 3 flats;
  • The close was negative with an A/DL of 12/31 and 2 flat;

 

Henry’omics:

Of the 45 companies covered on Tuesday; 31 downside equities finished in a range of -0.49% (XON) to -17.79% (MESO) while 12 upside equity oscillated from +0.25% (RARE) to +10.29% (KOOL +$0.03) with 2 flat close (AST and BSTG).

Volume is low but, moving up especially to the downside while the low hanging fruit of the upside has increased yet BLUE (+$2.87) out shown the upside followed by SAGE (+$0.38) as two followers were down -$0.19 (RARE and FATE) – not much of a showing.

 

Out and about:

Aduro Biotechnologies (ADRO) closed down -$0.93 to $6.24 after Monday’s $7.18 having ended September at $7.35 as ADRO noted that J&J told them they were bowing out on September 25. ADU-214, ADU-741 and GVAX Prostate will soon revert back to Aduro, as J&J also abandons any rights to its attenuated Listeria tech for lung and prostate cancer.  J&J’s exit leaves ADRO in early-stage development, with a lead program for ADU-S100, a lead STING pathway activator. In one early study, their drug is combined with the PD-1 checkpoint from Novartis. Late last year, ADRO noted that it was abandoning CRS-207 — which had been on partial hold earlier — after it failed to perform well in trials for mesothelioma, ovarian, and gastric cancer. Just days ago their CMO, Natalie Sacks, resigned. ADRO offered no explanation for her departure at the time. (ENDPOINTS NEWS).

As I had stated on Friday and Monday, “Keep an eye on the CRISPERS: CRISPR Therapeutics (CRSP -$2.01 on Monday and -$2.62 on Tuesday), Editas Medicine (EDIT -$1.35 on Monday and -$1.36 on Tuesday) and Intellia (NTLA -$1.49 on Monday and -$1.37 on Tuesday). I wasn’t wrong!

Applied Genetic Technologies (AGTC) dumped another -$0.15 after Monday’s -$0.45 to fall to $6.85 after Friday’s $7.30 and Thursday’s $7.35 having jumped from $6.50 over a Wells Fargo report on comparables initial data of P1/2 positive results - Nightstar Therapeutics PLC (NITE) which is down -$1.91 or -9.35% to $18.52 today after Friday’s $20.43 and Thursday’s $18.62, another correct SELL call.

BioLife Solutions (BLFS) closed down again -$0.66 after Monday’s -$0.33 or -1.89% to $17.17 after Friday’s $17.50 and Thursday’s $17.23 and last Wednesday’s $16.70 – we will see an incline as BLFS preliminary revenue from sales of media products reached a record $5.3 million (after Q2’s $5.2M) which represents a 79% increase over Q3/17. I still think it is OVERBOUGHT – right again.

Caladrius Biosciences (CLBS) closed barely down -$0.54 after Monday’s -$0.13 to $5.77 after Friday’s $5.90, Thursday’s $5.75 and last Wednesday’s $5.75 – another I told you so – spending issues;

SAGE Therapeutics (SAGE) closed up +$0.38 after Monday’s -$2.35. I kept saying SAGE was OVERSOLD;

Verastem Oncology (VSTM) with a FDA approval and Chinese collaboration has been subjected to trading pressures and OVERSOLD closed up +$0.155 to $6.67 having a Monday aftermarket indication of +$0.03 or +0.38%. I’m surprised by sell-off by the close but, it was still UP!

Where is the SUPPORT of the sector?

From the pre-open newsletter: “think about probabilities. I’m waiting for some of the oversold to “value-up”, maybe today, tomorrow - likely if not by Friday. A black-and-white answer, cover the bases after steep dives

 

Pre-open indications: 5 HITs and 4 MISS

  • Alnylam Pharmaceuticals (ALNY) closed down -$1.13 – miss;
  • BioLife Solutions (BLFS) closed down -$0.66 – hit;
  • CRISPR Therapeutics (CRSP) closed down -$2.62 – hit;
  • Editas Medicine (EDIT) closed down-$1.36 – miss;
  • Intellia Therapeutics (NTLA) closed down -$1.37 – miss;
  • Applied Genetic Technologies (AGTC) closed down -$0.15 – hit;
  • BioMarin Pharmaceuticals (BMRN) closed up +$0.18 – hit;
  • SAGE Therapeutics (SAGE) closed up +$0.38 – hit;
  • Verastem Oncology (VSTM) closed up +$0.15 – hit;

 

Five (5) key metrics:  

… The greatest volume to the downside:  SGMO, XON, CRSP, EDIT and IONS

… Upside volume was weighted to:  VSTM, MDXG, BMRN, HSGX and VCEL

… Leadership ($) to the downside:  RGNX (-$5.75), SLDB (-$3.77), ONCE (-$2.90), CRSP (-$2.62) and GBT (-$1.71)

… Best moves ($) to the upside:  BLUE (+$2.87), SAGE (+$0.38), BMRN (+$0.38), RARE (+$0.19) and FATE (+$0.19)

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Tuesday was down -0.66% with after NOT indicating in the pre-market
  • Monday (10/1) was down -0.63% with after a pre-market indication of +0.61%
  • Friday was up +0.06%
  • Thursday was up +1.04%
  • Wednesday was up +0.34 %
  • Last Tuesday was up +0.23 %

 

October sessions:

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.