August 3, 2018 5:18pm

As the advance/decline line (A/DL) dives 4/37 and 4 flats (of 45 covered); it’s mostly about the “blow-back” of quarterly results versus Thursday’s 27/16 and 1 flat …

If ten (10) Q2 earnings releases did a “job” on sector pricing; imaging what seventeen (17) will do next week?

 

Pre-open indications: 4 hit and 4 miss

Out and about: From today’s Barron’s article, “CRISPR crew said the studies (the Nature article) were false alarms and are proceeding with plans for clinical trials of the technique, which can home in on a faulty stretch of a cell’s genetic code and rewrite it to potentially cure diseases like hemophilia or cystic fibrosis.” Although, CRSP (-$1.25), EDIT (-$0.81) and NTLA (-$0.52) continued their downward drive! “If you don’t need to put CRISPR in humans, then side effects are not an issue.” https://www.barrons.com/articles/crispr-technology-still-holds-big-promise-1533317924?mod=hp_highlight_3.

Reiterating, “Would you bet your life and your current portfolio on a mouse model; it’s always a game of “truth or consequences!”

 

A “free-be” Friday; consider these end-of-day results as Monday’s primer!

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Henry’omics:

From the pre-open newsletter: “a quiet day on the quarterly reporting front; the releases will be flying next week.”

Reiterating, “Just remember that we are in the middle innings of the earning’s “game” and can bring a lot of excitement and anguish, too, depending on which company you are rooting for.”

The three major indexes closed higher for the week, with the S&P 500 (+0.08%) and NASDAQ rising 1%. The Dow rose just 0.04%this week. The S&P 500 and Dow also posted their fifth straight weekly gain.

As the sector “pooped the bed” in line with quarterly numbers – although Global Blood Therapeutics (GBT) resurfaced after announcing a Q2 net loss of $40.4 million or -$0.78 compared with $23.9 M or -$0.55 in 2017.

Who would have “thunk it”!

I reiterated an “extremes attitude” on sector equities – next week, arguing that a LPS (loss-per-share) trouble” isn’t over, and will impact the quarterly releasers but, may also provide an upside to this week’s decliners as they compare losses and cash positions!

 

Of the 45 companies covered on Friday; 37 downside equities finished in a range of -$0.02 (ONVO) to -$7.78 (RARE) while the 4 upside equities oscillated from +$0.0097 (KOOL) to $2.90 (GBT) with 4 flat close.

 

Daily analytics and metrics:

  • The Dow rose on Friday gained 136.42 points to close at 25,462.58
  • The S&P 500 gained 0.5% to 2,840.35
  • The NASDAQ advanced 0.1% or to 7,812.01

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 12/30 and 2 flats;
  • The mid-day continued negative with an A/DL of 7/37 and 1 flat;
  • The close was negative with an A/DL of 4/37 and 4 flats;

 

Pre-open to close indications: 4 hits and 4 miss

  • BioTime Inc. (BTX) closed down -$0.04 – miss;
  • Global Blood Therapeutics (GBT) closed up +$2.90 – miss;
  • bluebird bio (BLUE) closed down -$6.60 –hit;
  • Alnylam Pharmaceuticals (ALNY) closed down -$3.57 – miss;
  • BioMarin Pharmaceuticals (BMRN) closed down -$2.58 – miss;
  • CRISPR Therapeutics (CSP) closed down -$1.25 – trade, hit;
  • Editas Medicine (EDIT) closed down-$0.81 – trade, hit;
  • Intellia Therapeutics (NTLA) closed down -$0.52 – trade, hit;

 

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

Volume to the upside = GBT and HSGX

Volume to the downside = ALNY, AXGN, BTX, CLLS, RARE and ONCE

 

MY working trend (5 largest) lines:

… The greatest volume to the downside:  MDXG, RARE, VSTM, BMRN and ALNY

… Upside volume was weighted to:  GBT, HSGX, CLBS and KOOL

… Leadership ($) to the downside:  RARE (-$7.778), BLUE (-$6.60), SAGE (-$3.72), ALNY (-$3.57) and ONCE (-$3.29)

… Best moves ($) to the upside:  GBT (+$2.90), CLBS (-$0.07), HSGX (+$0.03) and KOOL (+$0.01)

… Flats:  VCEL, AGTC, BCLI and RENE.L

 

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

……. look at the differences in decliners:

  • 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 …

  • 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:

  • 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:

  • Friday was down -0.75%
  • Thursday was up +0.75%
  • Wednesday was up +0.58%

 

August sessions:

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.