January 28, 2019 6:10pm
Monday was just “a bridge too far” after Friday and Thursday’s positive closes
Shoot-down at the CRISPR peer group corral: CRSP (-$2.03 or -6.11%). EDIT (-$0.80 or -3.73%) and NTLA (-$1.30 or -8.81%)
Pre-open Indication: 4 HITs and 0 MISS
Out and about: Biostage (BSTG +$0.07) finally updates its development platform – the patient DIED; at the least, they won’t be sued; one on-going terminal death suit is still one too many!
RegMed Investors’ provides the realities of volatility and share pricing in the sector. That’s why the term “quantamental,” a blend of the two styles, may soon become common parlance among investors and traders.
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.
- The Dow closed down -208.98 points or -0.84 % to 24,528.22
- The S&P closed down -20.91 points or -0.78 % to 2,643.85
- The NASDAQ was down -79.18 points or -1.11% to 7,085.69
Sector equities bottomed after last week’s 2 positive and 2 negative closes after a Monday holiday
Monday's decline came after the Dow and NASDAQ notched their fifth straight weekly gain last week. The major indexes have been climbing back since a December plunge that culminated in a sharp decline on Christmas Eve. In that time, the major indexes have jumped at least 12% <CNBC>.
IF earnings killed today’s “draft” – wait until “our” universe’s LPS (loss-per-share” earnings start on 2/7!
There could be a limit to how much investors will shed tears in the wake of earnings stagnation – they are expecting it.
Remember, there is a correlation between pre earnings releases and post actualities which affect stock market depreciation which brings us to April and through Q1 into Q2/20.
Weakness shone brightly in Alnylam Pharmaceuticals (ALNY -$6.39), bluebird bio (BLUE -$3.53), Sage Therapeutics (SAGE -$2.94), BioMarin Pharmaceuticals (BMRN -$2.25) and Global Blood Therapeutics (GBT -$2.18)
Tonight’s percentage (%) indicators:
- Ranged of the 6 upside was +0.22% (QURE) to +10.15% (KOOL +$0.033) while the 37 downside ranged from -0.31% (CLLS) to -8.81% (NTLA) with 2 flat close (OSIR and RENE.L).
Volume stat: extremely low
- 10 out of the 37 upside had higher (than the 3 month average) volume
- 1 out of the 4 downside experienced greater volume (than the 3 month average) volume
The pre-open post stated, “Keeping an eye on last week’s high flyers and the dogs of the sector. The problem is a hangover that clouds the market and conversely the sector after last week’s 2 bottom ups (positive closes), 2 empty glasses (negative closes) and a holiday.”
Pre-open indications: 4 HITs and 0 MISS
- Cellectis (CLLS) closed down -$0.05 – hit;
- CRISPRS Therapeutics (CRSP) closed down -$2.03 – hit;
- Editas Medicine (EDIT) closed down -$0.80 – hit;
- Intellia Therapeutics (NTLA) closed down -$1.30 – hit;
The advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL to 40/5 and 0 flat;
- The mid-day stayed negative with an A/DL of 4/39 and 2 flats;
- The close was negative with an A/DL of 6/37 and 2 flats;
Daily sector metrics:
… Greatest volume (descending) to the downside:
- HSGX, VSTM, ALNY, SGMO and CRSP
… Upside volume was weighted to:
- QURE, KOOL, AST, BCLI and BSTG
… Weakness ($) to the downside: huge
- ALNY (-$6.39), BLUE (-$3.53), SAGE (-$2.94), BMRN (-$2.25) and GBT (-$2.18)
… Moves ($) to the upside: minimal
- CLBS (+$0.155), QURE (+$0.070, BSTG (+$0.07), BCLI (+$0.07) and KOOL (+$0.33)
… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:
- Monday was down -1.99% after NOT indicating;
- Friday was up +1.53% after indicating a positive +0.33% in the pre-open;
- Thursday was down -0.02% after NOT indicating;
- Wednesday was down -0.84% after indicating a negative -0.17% in the pre-open and -1.10% at the mid-day;
- Tuesday was down -1.58% after NOT indicating in the pre-open
- Last Monday was a market holiday
Monday closed NEGATIVE with 37 decliners, 6 advancers and 2 flat;
Friday closed POSITIVE with 32 decliners, 10 advancers and 3 flat;
Thursday closed POSITIVE with 31 decliners, 12 advancers and 2 flat;
Wednesday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;
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.