August 15, 2018 5:59pm

The trend was not our friend; showing that low volume upsides cause the overbought to become oversold – a frequent happening!

Dow (-0.54%), S&P (-0.76%), NASDAQ (-1.23%) dive below 50 day moving average while IBB (-1.56%) plunges in tandem

 

As I had stated, “A low volume upside is a cautionary event or happening!

Pre-open indications: “sit on your hands or use your fingers to turn the pages!”

 

There is no breadline for share pricing and fact based intelligence!

How many times, can one be right! Consider these end-of-day results as Thursday’s primer. A “buck” a day keeps your portfolio in the play - should have a subscriber … you could have been reading this now!

Review another freebee and SUBSCRIBE!


Henry’omics:

 

Sector stocks took a beating registering yet another session of severe headwinds!

I am NOT worried over trade wars, I am troubled and vexed by the costs of getting a compound to approval and a treatment pricing that justifies the expenditures of getting to market!!

After yesterday’s run-up, the game of musical chairs was back in play as this market left many sector stocks without a seat at the upside table.

Remember … after all the earnings releases – cash positions and most runways are strong as pipelines advance, some albeit slowly based on enrollment issues - the usual stumbling blocks … although strengthened by fuel left in the tank!

Even as the iShares Nasdaq Biotechnology ETF (IBB) drops -1.56% to 115.11, down from its 52-week range of 100.22 to 120.06 … and the Cboe Volatility Index (VIX) widely considered the best fear gauge in the market, to 14.64 with a day’s range of 13.44 to 16.86.

It has also been written that many traders are “harvesting gains” – what goes up will come down and the reverse is always an opposite reaction.

 

From the pre-open newsletter: “are we just buying into volatility? It’s not a reason to invest but, a trade is different and expensive for some. Our” universe has been on a roller coaster ride since August based on 10 sessions with 4 negative and 6 positive closes as quarterly results rattle investor sentiment - which is all but over!”

I had also stated, “Aside from concerns over news – our focus needs to be on pricing stability and sustainability – don’t be swayed by volatility!”

 

Daily analytics and metrics:

  • The Dow closed down -137.51 points to 25,162.41,
  • The S&P closed down -21.59 points to 2,818.37
  • The NASDAQ closed down -96.78 points to 7,774.12

 

Of the 45 companies covered on Wednesday; 36 downside equities finished in a range of -$0.02 (PSTI) to -$3.12 (SAGE) while the 6 upside equities oscillated from +$0.0052 (KOOL) to $1.55 (GBT) with 3 flat closes (ADRO, VSTM and RENE.L).

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 6/37 and 2 flats;
  • The mid-day was negative with an A/DL of 3/41 and 1 flat;
  • The close was negative with an A/DL of 6/36 and 3 flats;

 

MY working trend (5 largest) lines:

… The greatest volume to the downside:  SDGMO, MDXG, XON, ALNY and VCEL

… Upside volume was weighted to:  GBT, KOOL, ONVO, BOLD and VYGR

… Leadership ($) to the downside:  SAGE (-$3.12), BLUE (-$2.10), ALNY (-$1.96), IONS (-$1.37) and BMRN (-$1.33)

… Best moves ($) to the upside:  GBT (+$1.55), VYGR (+$0.19), BOLD (+$0.020, CLBS (+$0.02) and ONVO (+$0.015)

… Flats:  RENE.L, VSTM and ADRO

 

Volume anomalies (by the numbers) were higher than the 3 month average:

  • Volume to the upside = NONE
  • Volume to the downside = BSTG, OSIR, FIXX, AGTC, ONCE, IONS and SGMO

 

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

……. look at the differences in decliners:

  • Wednesday’s decliners ranged from -0.22% <QURE -$0.08> to -11.43% <AST -$0.20> in 36 equities;
  • Tuesday’s decliners ranged from -1.43% <AST -$0.03> to -11.11% <MDXG -$0.51> in x13 equities;
  • Monday’s decliners ranged from -0.08% <CRSP -$0.04> to -8.66% <CUR -$0.108> in 24 equities;
  • Thursday’s decliners ranged from -0.11% < GBT -$0.05> to -5.46% <RGNX -$3.85 > in 14 equities;
  • Last Wednesday’s decliners ranged from -0.35% <RGNX -$0.25> to -15.19% <VYGR -$3.07> in 25 equities;

Versus

… Look at the percentage’s (%) and spreads …

  • Wednesday’s gainers ranged from +0.06% <BOLD +$0.02 > to +3.34% <GBT +$1.55 > in 6 equities;
  • Tuesday’s gainers ranged from +0.26% < BLUE +$0.40> to +7.40% < FIXX +$1.16> in 28 equities;
  • Monday’s gainers ranged from +0.11% <NTLA +$0.03 > to +7.17% <HSGX +$0.175> in 19 equities;
  • Friday’s gainers ranged from +0.16% <BLCM +$0.01 > to +12.90% <AST +0.20> in 24 equities;
  • Thursday’s gainers ranged from +0.31% <ONCE +$0.18> to +11.30% <VSTM +$0.88 > in 29 equities;
  • Last Wednesday’s gainers ranged from +0.25% <BCLI +$0.01 > to +9.25% <BSTG +$0.31> in 16 equities;

 

The CBOE Volatility Index (VIX) widely considered the best gauge of fear in the market

  • Wednesday traded at 14.64, up +9.99%
  • Tuesday traded at 13.23, down -10.49%
  • Monday traded at 14.78, up +12.31%
  • Friday traded at 13.16, up +16.77%
  • Thursday traded at 11.20, up +3.23%
  • Last Wednesday traded at 10.85, down -0.73%

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Wednesday was down -1.56%
  • Tuesday was up +0.56%
  • Monday was down -0.15%
  • Friday was down -0.55%
  • Thursday was down -0.15%
  • Last Wednesday was down -0.70%

 

August sessions:

Wednesday closed NEGATIVE with 36 decliners, 6 advancers and 3 flat;

Tuesday closed POSITIVE with 13 decliners, 28 advancers and 4 flat;

Monday closed NEGATIVE with 24 decliners, 19 advancers and 2 flat;

Friday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Thursday closed POSITIVE with 14 decliners, 29 advancers and 2 flat;

Wednesday closed NEGATIVE with 25 decliners, 16 advancers and 4 flat;

Tuesday closed POSITIVE with 14 decliners, 29 advancers and 2 flat;

Monday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;

Friday closed NEGATIVE with 37 decliners, 4 advancers and 4 flat;

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

Last 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.