April 9, 2019 5:39pm
Which is the sectors biggest problem/issue; there are just too many factors including sentiment, momentum, volume and increasing risks whether perceived or not especially as news becomes strength to be sold into; it’s still about confidence and trust – there isn’t any …
Pre-open indications: 1 HIT and 1 MISS
Confidence perceived is not always value achieved!
There’s a difference between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules. After gains, there’s pain; followed by advances, declines and other progressions or was it regressions?
Markets and indexes:
- The Dow closed down -190.44 points or -0.72% to 26,150.58
- The S&P closed down -17.57 points or -0.61% at 2,878.20
- The NASDAQ was down -44.61 points or -0.56% to 7,909.28
What went wrong in the sector: negative sentiment lapped momentum; behind the decline was weak volume with while the downside experiencing the biggest hit and the feeble upside was even leaner.
There is just … NO trust or confidence in sentiment!
The Dow and S&P 500 both posted their worst session since March 22, while the Nasdaq Composite notched its largest drop since March 27.
Sector focus is centered on news and that’s being sold into … as “chips” come off the table and head to the pay window!
At the moment, I view the sector’s catalyst path was highly questionable which doesn’t say a lot for sentiment.
The advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL to 15/26, 2 flats and 2 acquired (AST & OSIR);
- The mid-day negative with an A/DL of 15/28 and 0 flats and 2 acquired;
- The close was negative with an A/DL of 9/33 and 1 flat and 2 acquired;
Pre-open post, “where are we as the sector goes in this market? Only the algorithms know … as expectation and probabilities are as fickle as April weather.”
My pre-open indications: 1 HITs and 1 MISS
- Alnylam Pharmaceuticals (ALNY) closed down -$1.26 – miss;
- ReNeuron Group (AIM: RENE) closed up +$51.00 – hit;
Cell and gene therapy company’s worst-performers were:
- FIXX (-$5.99), BLUE (-$4.25), RGNX (-$2.58), IONS (-$2.42) and QURE (-$1.56)
- ALNY (-$2.62), QURE (-$2.29), RGNX (-$1.75), BLUE (-$1.56) and BMRN (-$1.52)
Sector equities posting gains were:
- RENE.L (+$51.00), BOLD (+$0.30), VCEL (+$0.14), BLFS (+$0.09), AGTC (+$0.06)
- RENE.L (+$23.50), IONS (+$1.15), SAGE (+$1.12), BLFS (+$0.34) and MESO (+$0.32)
Tonight’s percentage (%) indicators:
- Range of the 9 upside was +0.50% (MDXG) to +29.82% (RENE.L) while the 33 downside ranged from -0.03% (ONCE) to -20.26% (FIXX).
- 5 out of the 9 upside had higher (than the 3 month average) volume
- 7 out of the 33 downside experienced greater volume (than the 3 month average)
1 flat – BLCM – with 2 acquired: 1 (AST & OSIR)
The iShares NASDAQ Biotechnology (IBB) indicator:
- Tuesday was down -1.61%;
- Monday was down -0.43%;
- Friday was up +1.66%;
- Thursday was down -0.41%;
- Wednesday was up +0.59%;
- Last Tuesday was up +0.81 %;
Tuesday closed NEGATIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);
Monday closed NEGATIVE with 24 decliners, 18 advancers, 3 flat and 1 acquired (AST);
Friday closed POSITIVE with 12 decliners, 31 advancers, 1 flat and 1 acquired (AST);
Thursday closed NEGATIVE with 30 decliners, 14 advancers, 0 flat and 1 acquired (AST);
Wednesday closed POSITIVE with 16 decliners, 27 advancers, 1 flat and 1 acquired (AST);
Tuesday closed POSITIVE with 11 decliners, 32 advancers, 1 flat and 1 acquired (AST);
Monday (4/1) closed POSITIVE with 19 decliners, 23 advancers, 2 flats and 1 acquired (AST);
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.