October 11, 2018 5:42pm

How apropos as I stated in the a.m. post, “the sector is what it is, until it isn’t and even then it doesn’t seem to be.”

Concerning the market and sector: “it’s not always algorithmic “rules” or clinical risks, interest rates, political issues, trade disagreements, sentiment; it’s … CONFIDENCE - check out the daily Advance/Decline Line, monthly session closes and “Watch List” BUYING opportunities!

Pre-open indications: 3 HITs and 3 MISS

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 closed down – 545 points or -2.13% to 25, 052.83
  • The S&P closed down – 57.31 points or -2.06% to 2,728.37
  • The NASDAQ closed down – 92.99 points or -1.25% to 7,329.06

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 13/28 and 4 flats;
  • The first ½ hour was positive with an A/DL of 30/24 and 1 flat;
  • The noon hour saw a neutral split with an A/DL of 22/22 and 1 flat;
  • The mid-day was negative with an A/DL of 20/24 and 1 flat;
  • 2:30 p.m. was negative with an A/DL of 9/35 and 1 flat;
  • The close was negative with an A/DL of 7/38 and 0 flat;

 

Pre-open indications: 3 HIT and 3 MISS

  • bluebird bio (BLUE) closed down -$1.09 – miss;
  • Cellectis SA (CLLS) closed down -$0.74 – miss;
  • CRISPR Therapeutics (CRSP) closed up +$0.31- hit;
  • Editas Medicine (EDIT) closed up +$0.56 – hit;
  • Intellia Therapeutics (NTLA) closed up +0.19 – hit;
  • SAGE Therapeutics (SAGE) closed down again -$0.46 – miss;

 

Five (5) key metrics: 

… The greatest volume to the downside:  HSGX, BOLD, VSTM, MDXG and SGMO

… Upside volume was weighted to:  CRSP, EDIT, NTLA, BTX and QURE

… Leadership ($) to the downside:  BOLD (-$2.70), RENE.L (-$2.50), RARE (-$1.85), ALNY (-$1.69) and GBT (-$1.16)

… Best moves ($) to the upside:  QURE (+$1.16), EDIT (+$0.56), CRSP (+$0.310, NTLA (+$0.19) and BTX (+$0.17)

… The iShares NASDAQ Biotechnology (IBB) closed:

  • 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;
  • Tuesday was down -0.45% after indicating a NEGATIVE -0.04% in the pre-market;
  • Monday was down -0.76% after NOT indicating in the pre-market;
  • Friday was down -1.15% after NOT indicating in the pre-market;
  • Last Thursday was down -2.79% % after NOT indicating in the pre-market;

 

Henry’omics:

The title says it all … the risks are out there; what’s going on – sector buyers freaked-out!

What I see is … OPPURTUNITY, maybe not tomorrow – next week will be UP sessions – it’s a serious momentum correction!

I wouldn’t buy the dip … without watching … when the sector STABILIZES.

To be sure, the sector’s rout this week has certainly gotten investor’s attention; in my usual contrarian shoes – let’s not be too early.

 

Watch list of BUYING opportunities:

Audentes Therapeutics (BOLD) on offering close

AxoGen (AXGN)

bluebird bio (BLUE)

Cellectis SA (CLLS)

CRISPR Therapeutics (CRSP)

Editas Medicine (EDIT)

Intellia Therapeutics (NTLA)

Global Blood therapeutics (GBT)

Regenxbio (RGNX)

Sangamo Therapeutics (SGMO)

 

The Dow closed 546 points lower, bringing its two-day losses to more than 1,300 points. The S&P 500 dropped 2.1% and posted its sixth (6th) straight decline breaking below its 200-day moving average for the first time since May. The NASDAQ pulled back 1.3% and had briefly entered correction territory.

Of the 45 companies covered on Thursday; 38 downside equities finished in a range of -0.10% (ADVM) to -9.04% (BOLD) while 7 upside equities oscillated from +0.85% (CRSP) to +8.85% (BTX) with a 0 flat close.

5th time, “I reiterate that investors remain – DEFENSIVE!”

Volume has been increasing … look at the depth – 5 out of 7 of the upside had higher (than the 3 month average) volume while the downside spiked with 24 having greater volume (than the 3 month average) out of 38.

 

From the pre-open newsletter: “the sector is what it is, until it isn’t and even then it doesn’t seem to be … nobody likes this market… follow or not pre and aftermarket indications post a steep decline.”

 

October sessions:

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.