May 15, 2019 5:51pm
The question remains how long to hold (?) when profit appears; in that I don’t trust this market’s upside
Pre-open indications: 3 HITs and 2 MISS
Don’t get comfortable, today’s market impacts Thursday; If you were a subscriber … you would understand why!
I had said in the a.m. post time to be “picking” amongst the flotsam but ... now I say - PROFIT from STRENGTH!
Markets and indexes:
- The Dow closed up +133.51 points or +0.52% to 25,665.56
- The S&P closed up +16.65 points or +0.58% at 2,850.96
- The NASDAQ was up +87.65 points or +1.13% to 7,822.15
Sector equities and markets rose on Wednesday on news that President Trump plans to delay the implementation of auto tariffs.
Wednesday’s advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL at 18/23, 2 flat and 2 acquired (AST & OSIR);
- The mid-day was positive with an A/DL of 28/15 and 0 flat and 2 acquired;
- The close was positive with an A/DL of 30/13 and 0 flat and 2 acquired;
Equities initially fell after the release of weaker-than-expected economic data stoked fears that the U.S.-China trade war is dragging down global economic growth.
It’s all about trading the oversold … that are soon to be upside pricing reaped and considered overbought. No one trusts this market as related to tariffs rhetoric and headlines from Washington.
Also sentiment is flat lining and directionless (in my mind) while volume relains LOW; fundamentals be damn – trade it until pricing “bites” you, then hold until it comes back!
Upside volume stats: review the numbers, there is a message …
- Wednesday: 4 out of the 29 upside had higher than the 3 month average volume;
- Tuesday: 7 out of the 30 upside had higher than the 3 month average volume;
- Monday: 0 out of the 4 upside had higher than the 3 month average volume;
Downside volume stats: here is where the session landing is expressed …
- Wednesday: 2 out of the 14 downside had higher than the 3 month average volume;
- Tuesday: 4 out of the 13 downside had higher than the 3 month average volume;
- Monday: 9 out of the 39 downside had higher than the 3 month average volume;
Pre-open post, “volatility can be your friend; trade is not the only worry, its short-term risk driven profit taking as sentiment shillyshallies as trust and conviction issues proliferate. Skim if you can trim, buy if it will fly and sell if compelled! “
bluebird bio (BLUE) -$11.85 led the downside on pricing’s plan questions followed by Spark Therapeutics (ONCE) – $0.53 on news that Roche has not closed the deal and Solid Biosciences (SLDB) taking another big hit on safety issues (-$0.41 after Tuesday’s -$3.02) while ReNeuron (RENE.L) continue the spiral to the upside (+$18.00 after Tuesday’s $7.00) followed by BioMarin Pharmaceuticals (BMRN) +$6.11 followed by Fate Therapeutics (FATE) +$1.09.
Pre-open indications: 3 HITs and 2 MISS
- Biostage (BSTG) closed up +$0.18 – miss; who is buying this cash bankrupt company – fraud is deception and this CEO and CFO have the practice down pat. Just wait the evolving “story” is yet to be totally outed!
- Solid Biosciences (SLDB) closed down -$0.41 – hit;
- Ionis Pharmaceuticals (IONS) closed down -$0.19 – miss;
- BioLife Solutions (BLFS) closed down -$0.16 – hit;
- ReNeuron (RENE.L) closed up +$18.00 – hit;
Cell and gene therapy company’s worst-performers were:
- Wednesday: BLUE (-$1.85), ONCE (-$0.53), SLDB (-$0.41), AGTC (-$0.33) and IONS (-$0.19);
- Tuesday: SLDB (-$3.04), ALNY (-$1.17), ONCE (-$0.82), CRSP (-$0.130 and STML (-$0.12);
- Monday: BLUE (-$8.73), RENE.K (-$5.00), GBT (-$4.26), RARE (-$3.49) and QURE (-$3.42);
Sector equities posting gains were:
- Wednesday: RENE.L (+$18.00), BMRN (+$6.11), FATE (+$1.09), CRSP (+$1.05) and SAGE (+$0.96);
- Tuesday: RENE.L (+$7.00), GBT (+$2.44), RARE (+$2.25), SAGE (+$2.00) and BLUE (+$1.94);
- Monday: BLFS (+$0.16), AGTC (+$0.12), CLBS (+$0.08) and CUR (+$0.0165)
Tonight’s percentage (%) indicators:
- Wednesday’s range of the 29 upside was +0.04% (AXGN) to +12.28% (BTX) while the 14 downside ranged from -0.14% (RARE) to -8.229% (AGTC);
- Tuesday’s range of the 30 upside was +0.50% (IONS) to +17.05% (VSTM) while the 13 downside ranged from -0.17% (BLCM) to -34.35% (SLDB);
- Monday’s range of the 4 upside was +2.94% (AGTC) to +4% (CUR +$0.0165) while the 39 downside ranged from -0.10% (HSGX) to -6.55% (BLUE);
0 flat with 2 acquired (AST & OSIR) and the Spark Therapeutics (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Wednesday closed up +0.91%
- Tuesday closed up +1.11%
- Monday closed down -3.50%
- Friday closed down -0.32%
- Thursday closed down -0.24%
- Last Wednesday closed down -0.04%
Wednesday closed POSITIVE with 14 decliners, 29 advancers, 0 flat and 2 acquired (AST & OSIR);
Tuesday closed POSITIVE with 13 decliners, 30 advancers, 0 flat and 2 acquired (AST & OSIR);
Monday closed NEGATIVE with 39 decliners, 4 advancers, 0 flat and 2 acquired (AST & OSIR);
Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flat and 2 acquired (AST & OSIR);
Thursday closed NEGATIVE with 23 decliners, 20 advancers, 0 flat and 2 acquired (AST & OSIR);
Wednesday closed POSITIVE with 18 decliners, 24 advancers, 1 flat and 2 acquired (AST & OSIR);
Tuesday closed NEGATIVE with 36 decliners, 6 advancers, 1 flat and 2 acquired (AST & OSIR);
Monday closed POSITIVE with 8 decliners, 32 advancers, 3 flat and 2 acquired (AST & OSIR);
Friday closed POSITIVE with 4 decliners, 37 advancers, 2 flat and 2 acquired (AST & OSIR);
Thursday closed NEGATIVE with 23 decliners, 17 advancers, 3 flat and 2 acquired (AST & OSIR);
Wednesday (5/1) closed NEGATIVE with 30 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR);
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.