RegMed Investors’ (RMi) closing bell: new month opens with reintroduced optimism

March 1, 2019 5:45pm

However, liquidity remains a cause for concern

Pricing differentials rise with volume, while the IBB daily jumps +2.10%

Not a spoilsport as Q4 and FY18 results are half reported, so be ready for yet another sector hit; the constant battle of the oversold and the overbought

Pre-open indications: 4 HITs and 1 MISS

The 6 W’s: Who, what, where, when, why and what of it … when the “numbers” explain share pricing!

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors and traders.

Markets and indexes:

• The Dow closed up +130.72 points or +0.50% to 26,046.72
• The S&P closed up +19.20 points or +0.69% to 2,803.69
• The NASDAQ was up +62.82  points or +0.83% to 7,595.35

Henry’omics:

Sector equities rose on Friday, the first day of March, as investors built on a strong start to a month as Q1 edges to a finality and Q4 and FY18 earnings aren’t even completed.

The S&P 500 traded around the key 2,800 level for most of this week, briefly breaking above it on Monday and Tuesday on an intraday basis.

Friday's moves come a day after the major indexes posted solid monthly gains in February, pushing the S&P 500 to its best start to a year since 1991. The S&P 500 is up more than 11% for the year, along with the Dow; while the NASDAQ is up more than 14%.

Decreasing trade tensions between China and the U.S., along with declining fears of tighter monetary policy from the Federal Reserve, helped propel stocks higher to kick off March 2019 <CNBC>.

Pre-open post, “first trading day of March; in times of share pricing stress; pre and post quarterly results can be a real “downer” however, the real question is whether quarterly results matter? They are a confirmation and “proof of life” tools to measure expectation (being on track) and liquidity.”

NOTHING is a certainty in this sector; it was disappointing Q4 and FDY18 reported results that put pressure on stocks in the last two (2) weeks.

It is interesting that Q4 results … BEAT yet, FY19 guidance is weak in some cases – keep your eye on clinical trial endpoints and if they meet?

I focus on indication analysis; an indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation. The sole provision is that it provides insight to provide some vision into a likely course of action.

The advance/decline line scenario of 45 covered companies:  

• The open was positive with the A/DL to 38/4 and 3 flats;
• The mid-day was positive with an A/DL of 35/7 and 3 flats;
• The close was positive with an A/DL of 32/11 and 2 flats;

Pre-open indications: 4 HITs and 1 MISS

• Intrexon (XON) closed down -$2.91 – hit;
• Sangamo Therapeutics (SGMO) closed up +$1.04 – hit;
• uniQure NV (QURE) closed up +$3.32 – miss;
• Intellia Therapeutics (NTLA) closed up +$1.69 – hit;
• Editas Medicine (EDIT) closed up +$3.01 – hit;

Bouncing to the upside:  

• XON (-$2.91), IONS (-$1.30), FIXX (-$0.48), SAGE (-$0.24) and OSIR (-$0.21)

Leading the pack to the downside:

• CRSP (+$4.58), BOLD (+$3.54), RARE (+$3.41), QURE (+$3.32) and EDIT (+$3.01)

Closing FLAT:  

• BSTG and RENE.L

Tonight’s percentage (%) indicators: 

• Range of the 32 upside was +0.13% (BCLI) to +14.59% (EDIT) while the 11 downside ranged from -0.02% (ONCE) to -36.51% (XON).

Volume stat: 

• 14 out of the 32 upside had higher (than the 3 month average) volume
• 5 out of the 11 downside experienced greater volume (than the 3 month average)

… Greatest volume (descending) to the downside: 

• XON, ONCE, HSGX, IONS and ADRO

… Upside volume was weighted to:

• SGMO, EDIT, VSTM, CRSP and SLDB

The iShares NASDAQ Biotechnology (IBB) indicator:

• Friday was up +2.10% after NOT indicating;
• Thursday was down -1.23% after indicating a NEGATIVE -0.49% downside;
• Wednesday was up +1.64% after NOT indicating in the pre-market;
• Tuesday was down -0.41% after NOT indicating in the pre-market;
• Monday was a vacation day
• Last Friday was up +1.4% after NOT indicating in the pre-market;

March sessions following February’s last week:

Friday (3/1) closed POSITIVE with 11 decliners, 32 advancers and 2 flats;

February:

• Thursday (2/28) closed NEGATIVE with 25 decliners, 15 advancers and 5 flat;
• Wednesday closed POSITIVE with 14 decliners, 30 advancers and 1 flat;
• Tuesday closed NEGATIVE with 24 decliners, 20 advancers and 1 flat;
• Monday was a vacation day

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.