April 16, 2019 6:32pm
The issues: downtrends are considered resistance as volume effects momentum
Pre-open indications: 7 HITs and 1 MISS
News: Adverum Biotechnologies (ADVM +$0.25) presented new pre-clinical data at upcoming conferences, including the American Society of Gene and Cell Therapy (ASGCT) and the Association for Research in Vision and Ophthalmology (ARVO).The FDA questioned the CMC work related to ADVM’s lead gene therapy for wet, age-related macular degeneration and regulators put a clinical hold on their clinical development program and were now reviewing a response to their query, submitted last week.
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Markets and indexes:
- The Dow closed up +78.57 points or +0.30% to 26,463.34
- The S&P closed up +1.48 or +0.05% at 2,907.06
- The NASDAQ was up +24.21 points or +0.30% to 8,000.23
It was about time, the sector showed … some movement other than down!
The NASDAQ advanced 0.3% while the S&P 500 eked out its 12th gain in 14 sessions with the S&P 500 only gained 0.05% to close at 2,907.06, it did inch closer to 2,940, a record high set in late September.
“Earnings” LPS (loss-per-share) season begins on the 25th.
Despite what the sector did today, it’s still defensive seeing many equities continuing to decline and some of those who inclined are doomed to the “Icarus” effect.
Caution should be the newest sector … NORMAL!
The advance/decline line scenario of 45 covered companies:
- The open was positive with the A/DL to 25/14, 5 flats and 1 acquired (AST);
- The mid-day positive with an A/DL of 22/20 and 2 flats and 1 acquired;
- The close was positive with an A/DL of 23/17 and 4 flats and 1 acquired;
Pre-open post, “it’s time for a spin game of “pick-up-stocks. Share pricing has been bottoming; it’s time for some of the oversold … not all!”
I also stated, “It’s time to … separate the BROKE (re cash position) from their management roles – NO names to guard the GUILTY!” And it happened without ANY prodding…”
My pre-open indications: 7 HITs and 1 MISS
- Alnylam Pharmaceuticals (ALNY) closed up +$0.03 – hit;
- CRISPR Therapeutics (CRSP) closed up +$1.93 – hit
- Editas Medicine (EDIT) closed up +$0.68 – hit;
- Intellia Therapeutics (NTLA) closed up +$0.53 – hit;
- Mesoblast Limited (MESO) closed flat at $5.74 – hit;
- ReNeuron Group (AIM: RENE) closed down -$9.00 – hit;
- Spark Therapeutics (ONCE) closed down -$0.33 – miss;
- Verastem Oncology (VSTM) closed flat at $2.37 – hit;
Cell and gene therapy company’s worst-performers were:
- RENE.L (-$9.00), RARE (-$3.94), BMRN (-$3.34), IONS (-$0.60) and BLFS (-$0.43)
- SAGE (-$2.94), BLUE (-$1.67), GBT (-$1.58), ALNY (-$1.28) and QURE (-$1.11)
Sector equities posting gains were:
- CRSP (+$1.93), GBT (+$0.89), BLUE (+$0.70), EDIT (+$0.68) and RGNX (+$0.68)
- BMRN (+$1.92), ADVM (+$0.59), EDIT (+$0.45), CLLS (+$0.35) and MESO (+$0.19)
Tonight’s percentage (%) indicators:
- Range of the 23 upside was +0.03% (ALNY) to +7% (CLBS) while the 17 downside ranged from -0.26% (BCLI) to -8.35% (HSGX).
- 7 out of the 23 upside had higher (than the 3 month average) volume
- 7 out of the 17 downside experienced greater volume (than the 3 month average)
4 flat – BLCM, MESO, OSIR and VSTM – with 1 acquired (AST)
The iShares NASDAQ Biotechnology (IBB) indicator:
- Tuesday was down -1%;
- Monday was down -0.50%;
- Friday was down -0.76%;
- Thursday was down -1.70 %;
- Wednesday was up +1.10%;
- Last Tuesday was down -1.61%;
Tuesday closed POSITIVE with 17 decliners, 23 advancers, 4 flat and 1 acquired (AST);
Monday closed NEGATIVE with 29 decliners, 14 advancers, 1 flat and 1 acquired (AST);
Friday closed NEGATIVE with 22 decliners, 21 advancers, 1 flat and 1 acquired (AST);
Thursday closed NEGATIVE with 32 decliners, 11 advancers, 1 flat and 1 acquired (AST);
Wednesday closed POSITIVE with 10 decliners, 33 advancers, 1 flat and 1 acquired (AST);
Tuesday closed NEGATIVE with 34 decliners, 9 advancers, 1 flat and 1 acquired (AST);
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.