October 26, 2018 6:11pm

Longs have been hanging from the yardarms

As I stated, “I’ve been skeptical of the multiple declines followed by steep inclines followed by drastic degeneration – today’s result.”

Pre-open indications: 2 HITs and 0 MISS

 

Who is defining the metrics for individual investors?

RMi’s 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.


I believe in the mythology legend of Icarus, who dared to fly too near the sun on wings of feathers and wax – like share pricing the wings that took him aloft melted away!

 

Daily analytics and metrics:

  • The Dow closed down -296.24 points or -1.19% to 24,688.31
  • The S&P closed down -46.88 points or -1.73% to 2,658.69
  • The NASDAQ closed down -651.12 points or -2.07% to 7,167.21

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 5/39 and 1 flat;
  • The mid-day was negative with an A/DL of 16/27 and 2 flats;
  • The close was positive with an A/DL of 18/26 and 1 flat;

 

Pre-open indications: 2 HITs and 0 MISS

  • CRISPR Therapeutics (CRSP) closed down -$0.71 – hit;
  •  BioLife Solutions (BLFS) closed down -$0.90 – hit;

 

Five (5) key metrics: 

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

… Upside volume was weighted to:  HSGX, BMRN, SGMO, AST and XON

… Leadership ($) to the downside:  RARE (-$10.74), BLUE (-$4.20), ALNY (-$1.17), BLFS (-$0.90) and AXGN (-$0.89)

… Best moves ($) to the upside:  RGNX (+$1.31), BMRN (+$1.01), SGMO (+$0.43), AST (+$0.37) and SLDB (+$0.35)

… The iShares NASDAQ Biotechnology (IBB) closed:

  • Friday was down -0.37% after indicating a negative -1.51% in the pre-market;
  • Thursday was up +1.15% after NOT indicating a POSITIVE +0.7% in the pre-market;
  • Wednesday was down -5.76% after indicating a NEGATIVE -0.59% in the pre-market;
  • Tuesday was down -0.48% after NOT indicating in the pre-market;
  • Monday was down -1.44% after indicating a POSITIVE +0.01% in the pre-market;
  • Last Friday was down -1.58% after NOT indicating in the pre-market;

 

Henry’omics:

Sector equities fell sharply on Friday as investors plodded through another volatile session.

Among the driving forces for the market's sharp drop on Friday were disappointing earnings from key tech companies that overshadowed strong economic data.

This week major averages posted big losses for the week. The S&P 500 and Dow dropped 3.9% and 3% while the NASDAQ pulled back 3.8%.

These declines were enough to offset a better-than-expected report on U.S. economic growth. The Commerce Department reported the U.S. economy grew at a 3.5% rate inQ3, above a 3.4% estimate. The government also said its personal consumption expenditures (PCE) index, a key measure of inflation, increased by 1.6%last quarter.

 

Review the range of the 18 upside from +0.14% or +$0.14 (SAGE) to or +46.25% or +$0.37 (AST) while the 26 downside ranges from -0.25% or -$0.09(GBT) to -27.06% or -0.23 (CUR) with a 1 flat close (RENE.L).

Interesting stat: Volume DECREASED … look at the depth – 5 out of 18 of the upside had higher (than the 3 month average) volume while 9 of the downside experienced greater volume (than the 3 month average) out of 26.

 

From the pre-open newsletter,” the remaining session of the week; this sector is more concerned with volatility than fundamentals … which is on-going and not gone – ready for another encore?”

 

October sessions:

Friday closed NEGATIVE with 26 decliners, 18 advancers and 1 flat;

Thursday closed POSITIVE with 7 decliners, 37 advancers and 1 flat;

Wednesday closed NEGATIVE with 41 decliners, 3 advancers and 1 flat;

Tuesday closed NEGATIVE with 23 decliners, 21 advancers and 1 flat;

Monday closed NEGATIVE with 33 decliners, 11 advancers and 1 flat;

Friday closed NEGATIVE with 34 decliners, 8 advancers and 3 flat;

Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

Wednesday closed NEGATIVE with 25 decliners, 19 advancers and 1 flat;

Tuesday closed POSITIVE with 4 decliners, 39 advancers and 2 flats;

Monday closed NEGATIVE with 26 decliners, 17 advancers and 2 flats;

Friday closed POSITIVE with 9 decliners, 35 advancers and 1 flat;

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.