September 26, 2018 5:33pm

Investors cringe as value is destroyed, although some equities deserve the decline

What’s to emanate from follow-on sessions - bargain hunting as to which equities become oversold enough to BUY!

 

Pre-open indications:  3 HITs and 3 MISS

 

Out and about: The CRISPRS are getting their “ears” boxed: CRSP (-0.61), EDIT (-$0.11) and NTLA (-$0.19). Also more than a few are getting swept away:  ALNY (-$2.56), AXGN (-$1.75), BLFS (-$0.83), BLUE (-$2.60), CLBS (-$0.52), GBT (-$1.60) and QURE (-$1.67)

 

RMi is putting 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.


Henry’omics:

The trend is definitely not our friend today … as the sector got sideswiped by trading!

  • The dynamics of the sector has decimated sentiment and confidence.

Risk is always a factor in drug development however, trading decimates share pricing – so does it mean that we should exit the sector based on its volatility.

  • NO … but market breadth data is painting a more negative picture while volume is low, inclining to the downside and declining to the upside!

But, we do need to understand that a bounce-back will be in the cards.

  • FED meeting … Fed officials upped their outlook for U.S. economic growth this year and next. They now expect the U.S. economy to grow by 3.1% in 2018, up from 2.8%. They also see the economy expanding 2.5% in 2019, up from 2.4%.

The Fed also raised its target overnight a range to 2% to 2.25%, up from 1.75% to 2%. This marks the central bank's third rate hike this year and eighth (8th) since 2015.

 

From the pre-open newsletter: “share pricing is usually collateral damage in this market. There are few upsides that survive the risk of the incline. Selective evidence of a “tumble-down” concept as volume creeps higher.”

Staying on my “bully pulpit”; “Friday’s session ends the month and Q3 and I am NOT expecting any razzle-dazzle to share pricing. I also believe on some sector equities that have been locked down by low share pricing and volume to be EXPLOITED for their spikes!”

 

Daily analytics and metrics:

  • The Dow closed down -106.93 points or -0.40% to 26,385.28
  • The S&P closed down -9.59 points or -0.33% to 2,905.97
  • The NASDAQ closed down -17.10 points or -0.21% to 7,990.37

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 18/26 and 1 flat;
  • The mid-day continued negative with an A/DL of 18/27 and 1 flat;
  • The close was negative with an A/DL of 12/32 and 1 flat;

 

Pre-open indications:

  • Verastem Oncology (VSTM) closed up +$0.22 – hit;
  • Applied Genetic Technologies (AGTC) closed up +$0.20 – miss;
  • BioLife Solutions (BLFS) closed down -$0.83 – hit;
  • Editas Medicine (EDIT) closed down -$0.11 – hit;
  • Fate Therapeutics (FATE) closed down -$0.30 – miss;
  • Intrexon (XON) closed up +$0.27 – miss;

 

Of the 45 companies covered on Tuesday; 32 downside equities finished in a range of -0.17% (MDXG) to -8.39% (CLBS) while 12 upside equity oscillated from +0.76% (SAGE) to +11.34% (MESO) with 1  flat closes (RENE.L).

 

Five (5) key metrics:  

… The greatest volume to the downside:  ATHX, MDXG, SGMO, FATE and IONS

… Upside volume was weighted to:  VSTM, XON, BMRN, AGTC and SAGE

… Leadership ($) to the downside:  RARE (-$4.43), BLUE (-$2.60), ALNY (-$2.56), ONCE (-$2.420 and AXGN (-$1.75)

… Best moves ($) to the upside:  BMRN (+$1.80), RGNX (+$1/30), SLDB (-$1.20), SAGE (+$1.06) and MESO (+$0.81)

 

The iShares NASDAQ Biotechnology (IBB) closed:

  • Wednesday was up +0.34 %
  • Tuesday was up +0.23 %
  • Monday was up +1.19%
  • Friday was down -0.62%
  • Thursday was up +1.39%
  • Last Wednesday was up +0.13%

 

September sessions:

Wednesday’s closed NEGATIVE with 32 decliners, 12 advancers and 1 flat 

Tuesday’s closed POSITIVE with 20 decliners, 23 advancers and 3 flat 

Monday’s closed POSITIVE with 13 decliners, 28 advancers and 4 flat 

Friday’s closed NEGATIVE with 32 decliners, 11 advancers and 2 flat 

Thursday’s closed POSITIVE with 10 decliners, 34 advancers and 1 flat 

Wednesday’s closed POSITIVE with 18 decliners, 24 advancers and 3 flats 

Tuesday’s closed POSITIVE with 7 decliners, 36 advancers and 2 flats 

Monday’s closed NEGATIVE with 31 decliners, 12 advancers and 2 flats 

Friday’s closed POSITIVE with 19 decliners, 23 advancer and 3 flats 

Thursday’s closed NEGATIVE with 22 decliners, 20 advancer and 3 flats 

Wednesday’s closed POSITIVE with 20 decliners, 25 advancer and 0 flats 

Tuesday’s closed POSITIVE with 20 decliners, 23 advancer and 2 flats 

Monday’s closed NEGATIVE with 28 decliners, 17 advancer and 2 flats 

Friday’s closed POSITIVE with 15 decliners, 23 advancer and 7 flats 

Thursday’s closed NEGATIVE with 39 decliners, 1 advancer and 5 flats 

Wednesday’s closed NEGATIVE with 30 decliners, 12 advancers and 3 flats 

Tuesday’s (9/4) closed NEGATIVE with 22 decliners, 19 advancers and 4 flats  

 

 

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.