Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: sell-off persists with no respect for the sector

April 18, 2019 6:11pm

The IBB slid another 0.57% after falling 3.89% on Wednesday, -0.1% on Tuesday and -0.50% on Monday – although the sector is up +8% so far this year

“Our” universe is collateral damage from political “yearnings”

Pre-open indications: 3 HITs and 3 MISS

The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether market reaction to recent events is temporary and short-lived, or if this is a continuation of a more fundamental correction.

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Markets and indexes:

The Dow closed up +110 points or +0.42% to 26,559.54
The S&P closed up +4.58 points or +0.16% at 2,905.03
The NASDAQ was up +1.98 points or +0.02% to 7,998.05

Henry’omics:

This week’s sessions end on a very negative note!

Sector equities got hammered yet again, the third (3^rd) session of the week as Friday the market is closed for Good Friday pre the Easter weekend.

Sentiment is in the toilet with April’s 6 positive and 8 negative closes following March’s 21 sessions, with 7 negative and 14 positive closes.

Broadly speaking, nearly 80% of health-care stocks were below their 50-day moving averages.

The health-care sector fell more than 4% this week as investors worry over proposals pushed by Democratic lawmakers. UnitedHealth CEO David Wichmann told analysts in a conference call earlier this week that propositions like “Medicare for All” would “jeopardize the relationship people have with their doctors, destabilize the nation’s health system and limit the ability of clinicians to practice medicine at their best” <CNBC>.

Pre-open post, “are the oversold cheap enough on the last trading day of the week. Given the lack of news, today could be a good opportunity for investors to pick up shares at these discounted pricings and I had said that yesterday and was wrong – is it good to be early, depending on the price!”

The advance/decline line scenario of 45 covered companies:

The open was negative with the A/DL to 15/29, 1 flats and 2 acquired (AST &OSIR);
The mid-day negative with an A/DL of 15/27 and 1 flat and 2 acquired;
The close was negative with an A/DL of 16/25 and 2 flats and 2 acquired;

My pre-open indications: 3 HITs and 3 MISS

Alnylam Pharmaceuticals (ALNY) closed down -$2.82 – miss;
CRISPR Therapeutics (CRSP) closed down -$0.17 – hit;
Editas Medicine (EDIT) closed up +$0.08 – hit;
Intellia Therapeutics (NTLA) closed down -$0.06 – hit;
ReNeuron Group (AIM: RENE) closed up +$6.50 – miss;
Verastem Oncology (VSTM) closed down -$0.06 – miss;

Cell and gene therapy company’s worst-performers were:

ALNY (-$2.82), BLUE (-$2.33), GBT (-$1.740, QURE (-$0.92) and FIXX (+$0.62)
BLUE (-$14.63), IONS (-$10.61), SAGE (-$6.59), BMRN (-$6.16) and ALNY(-$3.67)
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:

RENE.L (+$6.50), SAGE (+$3.26), BMRN (+$0.81), FATE (+$0.41) and SLDB (+$0.41)
RENE.L (+$3.50), RGNX (+$1.05), BSTG (+$0.03), ONVO (+$0.02) and FIXX (+$0.01)
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 7 upside was +0.31% (EDIT) to +5.84% (ADVM) while the 34 downside ranged from -0.08% (ONCE) to -11.46% (PSTI).

Volume stats:

6 out of the 16 upside had higher (than the 3 month average) volume
11 out of the 25 downside experienced greater volume (than the 3 month average)

2 flat – SGMO and ATHX– with 2 acquired (AST & OSIR)

The iShares NASDAQ Biotechnology (IBB) indicator:

Thursday was down -0.57%;
Wednesday was down -3.89%;
Tuesday was down -1%;
Monday was down -0.50%;
Friday was down -0.76%;
Last Thursday was down -1.70 %;

April sessions:

Thursday closed NEGATIVE with 25 decliners, 16 advancers, 2 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with36 decliners, 7 advancers, 0 flat and 2 acquired (AST & OSIR);

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.