December 4, 2018 5:53pm

Goodbye ASH, some data looked good, some early yet, caused share pricing damage after some presentations

The IBB (-3.30%), the NASDAQ (-3.8%), the Russell 2000 (-4.4%) facilitated by increasing volume as the S&P 500 declined 3.2% to close at 2,700.06. The benchmark fell below its 200-day moving average, which triggered more selling from algorithmic funds; while sector sentiment shifted as the momentum moved to the downside

 

Pre-open indications: 3 HITs and 1 MISS

 

 

The 6 W’s: Who, what, where, when, why and what of it … a freebee tonight!

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the markets act like it’s their blueprint. Stocks have lately been alternating between the horrific and the benign.

 

Daily analytics and metrics:

  • The Dow closed DOWN -788.29points or -3.05% to 25,038.14
  • The S&P closed DOWN – 90.31points or -3.24% to 2,700.06
  • The NASDAQ was DOWN -283.09 points or -3.80% to 7,158.43

 

From the pre-open newsletter: “presentations continue at ASH; how short-term is yesterday’s upside? Take any profit before it erodes and the market is closed on Wednesday!”

 

The advance/decline line scenario of 45 covered companies:   

  • The open was positive with an A/DL of 25/17 and 3 flats;
  • The mid-day slipped negative with an A/DL of 8/36 and 1 flat;
  • The close was negative with an A/DL of 32/10 and 3 flat;

 

Pre-open indications: 3 HITs and 1 MISS

  • bluebird bio, Inc. (BLUE) closed down -$2.85 – hit;
  • Global Blood Therapeutics (GBT) closed down -$1.17 – hit;
  • Verastem Oncology (VSTM) closed down -$0.37 – hit;
  • Pluristem Therapeutics Inc. (PSTI) (PSTI.TA) closed down -$0.05 – miss;

 

Daily sector metrics:

… Greatest volume to the downside:  GBT, VSTM, SGMO, IONS and BLUE

… Upside volume was weighted to:  ADRO, FATE, MDXG, HSGX and FIXX

… Weakness ($) to the downside:  SAGE (-$7.49), ALNY (-$5.94), RGNX (-$5.79), BMRN (-$4.10) and RARE (-$4.10)

… Best moves ($) to the upside … FIXX (+$0.190, CLBS (+$0.10), ADRO (+$0.07), MDXG (+$0.040 and KOOL (+$0.0108)

The iShares NASDAQ Biotechnology (IBB) closed:

  • Tuesday was DOWN -3.30% after indicating a NEGATIVE -0.2% in the pre-market;
  • Monday was UP +1.15% after indicating a POSITIVE +1.74% in the pre-market;
  • Friday was UP +1.50% after NOT indicating in the pre-market;
  • Thursday was down -0.05% after NOT indicating in the pre-market;
  • Wednesday was up +2.71% after indicating a POSITIVE +0.66% in the pre-market;
  • Last Tuesday was down -0.3% after NOT indicating in the pre-market;

 

Henry’omics:

“When is a 10% gain considered riskier than a 10% loss? When the 10% loss is produced when the broad stock market lost 20%, and the 10% gain occurred when the market rose 20%. Why does that follow? Because, as defined by some financial advisers and other investment professionals, risk relates to lagging the market — “negative alpha,” in technical-speak. You might think that it’s absurd to consider a 10% gain as being riskier than a 10% loss. But that just means you’re using a different definition of risk: The possibility of loss. Welcome to the complicated world of defining risk <MarketWatch>”

It’s hard not to be confused when there are such varied, and often contradictory, definitions of risk!

 

The Russell 2000, which tracks small-cap stocks, dropped 4.4% to 1,480.75, marking its worst day since 2011. Trading volume in U.S. stocks was also higher on a macro level than usual.

The CRISPRS – CRSP (-$3.50 or -8.79%), EDIT (-$1.30 or -4.09%) and NTLA (-$1.88 or -10.28%) got whipped yet again

VERY slim upsides were led by FIXX (+$0.19), CLBS (+$0.10), ADRO (+$0.07) and MDXG (+$0.04) while Tuesday’s sector LOWS were HUGE with SAGE (-$7.49), ALNY (-$5.94), RGNX (5.79) while Monday’s big loser was BLUE (-$6.39) after Friday’s dip of (-$2.25).

Sector equities got squashed at the mid-day after a positive open and a solid first hour to close negative at the close.

 

Tonight’s percentage (%) indicators:

  • Review the range of the 7 upside from +0. 06% (FATE +$0.01) to +3.27% (KOOL +$0.0108) while the 36 downside ranged from -0.41% (OSIR) to -10.28% (NTLA) with 2 flat close (BLCM and RENE.L).

Volume stat:

  • 3 out of 10 upside had higher (than the 3 month average) volume
  • 17 out of 36 downside experienced greater volume (than the 3 month average).

 

December sessions:

Tuesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;

Monday (12/3) closed POSITIVE with 10 decliners, 32 advancers and 3 flats;

  • In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
  • In 23 sessions in October – there were 17 negative closes and 6 positive closes
  • 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.