January 22, 2019 5:18pm
CRSP (-$4.05 or -10.91% to $33.08), EDIT (-$5.19 or -19.85% to $20.950 and NTLA (-$1.04 or -6.84% to $14.16) – The real question, how fast do they rebound after a free fall?
Hammers home that economics move markets as an attention-grabbing headline kills the sector but, that wasn’t the whole story – weakness and confidence was evident after a market holiday.
Volatility and short-termism still rule the sector!
Pre-open Indication: 5 HITs and 1 MISS
Outspoken and just right again!
RMi outlines preludes and aftermaths defining the daily dose of factors, investment thesis and objectivity!
The 6 W’s: Who, what, where, when, why and what of it … so who has been where, done what?
- The Dow closed down -301.87 points or -1.22% to 24,404.48
- The S&P closed down – 37.81points or -1.42% to 2,632.90
- The NASDAQ was down -136.87 points or -1.91% to 7,020.35
Sector equities got hammered over the CEO of Editas Medicine (EDIT) resigning as markets fell on Tuesday, the first trading day of the week, as weak data out of China and lower global growth estimates from the International Monetary Fund renewed fears of the global economy slowing down.
Stocks came into Tuesday's session riding a four-week winning streak, their longest since August, as investors have largely shrugged off fears of a slowdown in earnings growth as well as an ongoing U.S. government shutdown. The S&P 500 is also up more than 10% since Dec. 24.
Headlines move markets as a headline kills the sector but, that wasn’t the whole story – weakness was evident after a market holiday!
The major indexes added to their losses after the National Association of Realtors said U.S. existing housing sales fell to their lowest level in three years. The iShares U.S. Home Construction ETF (ITB) pulled back 1.7%.
From the morning post: “performance anxiety; the cold bucket of water is in the form of the upcoming splash of Q4 LPS (loss-per-share) earnings … and cash positions re spending and “runways”. I’d start with enterprise value versus market cap disparities, return on equity, and short % of float, ATM utilizations and those companies that keep pushing payables and liabilities forward. Never forget regulatory status – the claim to a possible fame!”
Pre-open indications: 5 HITs and 1 MISS
- uniQure (QURE) closed down -$0.22 – miss;
- CRISPRS Therapeutics (CRSP) closed down -$4.05 – hit;
- bluebird bio (BLUE) closed down -$4.87 – hit;
- Sage Therapeutics (SAGE) closed down -$2.08 – hit;
- Editas Medicine (EDIT) closed down -$5.19 – hit;
- Intellia Therapeutics (NTLA) closed down -$1.04 – hit;
The advance/decline line scenario of 45 covered companies:
- The open was negative with an A/DL of 7/37 and 3 flats;
- The mid-day was negative with an A/DL of 10/34 and 1 flat;
- The close was negative with an A/DL of 7/36 and 2 flats;
Leading gainers: FIXX, MDXG, BLFS, AXGN and AGTC
Largest losers: EDIT, BLUE, CRSP, RGNX and SAGE
Tonight’s percentage (%) indicators: thin
- Review the range of the 7 upside from +0.37% (ADRO) to +8.84% (MDXG +$0.22) while the 36 downside ranged from -0.47% (SLDB) to -19.85% (EDIT) with 2 flat closes (BSTG and RENE.L).
Volume stat: low and increasing
- 2 out of the 7 upside had higher (than the 3 month average) volume
- 18 out of the 36 downside experienced greater volume (than the 3 month average) volume
Daily sector metrics:
… Greatest volume (descending) to the downside: the usual suspects
- EDIT, HSGX, CRSP, XON and VSTM
… Upside volume was weighted to: barely
- MDXG, AXGN, ADRO, AGTC and FIXX
… Weakness ($) to the downside: deep
- EDIT (-$5.19), BLUE (-$4.87), CRSP (-$4.05), RGNX (-$3.31) and SAGE (-$2.50)
… Moves ($) to the upside: weak
- FIXX (+$0.24), MDXG (+$0.22), BLFS (+$0.20), AXGN (+$0.14) and AGTC (+$0.05)
… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:
- Tuesday was down -1.58% after NOT indicating in the pre-open
- Monday was a market holiday
- Friday was up +0.62% after NOT indicating in the pre-open
- Thursday was up +1.65% after NOT indicating
- Wednesday was down -0.28% after NOT indicating
- Last Tuesday was up +1.93% after indicating POSITIVE +0.27% upside in the pre-open;
Tuesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;
Monday was a market holiday;
Friday closed POSITIVE with 13 decliners, 30 advancers and 2 flats;
Thursday closed NEGATIVE with 22 decliners, 20 advancers and 3 flat;
Wednesday closed POSITIVE with 20 decliners, 23 advancers and 2 flat;
Tuesday closed POSITIVE with 11 decliners, 33 advancers and 1 flat;
Monday closed NEGATIVE with 32 decliners, 10 advancers and 3 flat;
Friday closed NEGATIVE with 23 decliners, 20 advancers and 2 flat;
Thursday closed POSITIVE with 19 decliners, 24 advancers and 2 flat;
Wednesday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
Tuesday closed POSITIVE with 18 decliners, 26 advancers and 1 flat;
Monday closed POSITIVE with 7 decliners, 38 advancers and 0 flats;
Friday closed POSITIVE with 5 decliners, 40 advancers and 0 flats;
Thursday closed NEGATIVE with 32 decliners, 11 advancers and 2 flats;
Wednesday (1/3/19) closed POSITIVE with 11 decliners, 34 advancers and 0 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.