May 22, 2019 6:08pm

31 out of 45 covered companies fell into decline; volume was low as sentiment reflected computer generated sell orders and pricing risks

Pre-open indications: 1 HIT and 5 MISS

My market prognosis was right-on yet my individual company picks were off yet I am sticking by my BUY rankings. At least I “allocute” when I miss a daily mark!

I believe in the mythology legend of Icarus, who dared to fly too near the sun on wings of feathers and wax – like share pricing the wings that took him aloft melted away!


 

I personally believe that reputational measures need to be introduced versus the “spins” practiced by more than some companies also I include those who don’t communicate.

 

Markets and indexes:

  • The Dow closed down -100.72 points or -0.39% to 25,776.61
  • The S&P closed up -8.09 points or -0.28% at 2,856.27
  • The NASDAQ was down -34.88 points or -0.45% to 7,750.84

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Henry’omics:

Sector equities pulled back on Wednesday as sentiment fell beside trade worries increasing.

A day after Washington's temporary easing of curbs against Huawei provided respite to U.S. stocks, reports that the White House could impose restrictions on another Chinese technology company rattled U.S. stocks anew.

Fears that tit-for-tat tariffs and other retaliatory actions by the U.S. and China will hamper global growth have kept investors on edge, putting the S&P 500 on track to post its first monthly decline since the December sell-off.

The Russell 2000 index of small company stocks gave up 13.62 points, or 0.9%, to 1,531.63.

For the week:

  • The S&P 500 is down 3.26 points, or 0.1%.
  • The Dow is up 12.61 points, or 0.1%.
  • The Nasdaq is down 65.44 points, or 0.8%.
  • The Russell 2000 is down 4.14 points, or 0.3%.

Today’s downside (31) move was equal upside (31), the downside scenario is just market based as the automated sell signals flooded the sector – expect a jump back if headlines are neutral.

What is going to make investors … jump, not walk or saunter back solidly to the sector ... is BIG CEO open market BUYS!

 

Pre-open post, “: what are the odds for the session? The situation looks fragile with a small pain and little gain forecast.”

 

Wednesday’s advance/decline line scenario of 45 covered companies:  

  • The open was negative with the A/DL at 14/28, 1 flat and 2 acquired (AST & OSIR);
  • The mid-day was negative with an A/DL of 6/36 and 1 flat and 2 acquired;
  • The close was negative with an A/DL of 9/32 and 2 flats and 2 acquired;

 

Upside volume stats:  review the numbers, there is a message …

  • Wednesday: 0 out of the 9 upside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 31 upside had higher than the 3 month average volume;
  • Monday: 2 out of the 11 upside had higher than the 3 month average volume;

Downside volume stats: here is where the session landing is expressed …

  • Wednesday: 7 out of the 32 downside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 8 downside had higher than the 3 month average volume;
  • Monday: 6 out of the 31 downside had higher than the 3 month average volume;

 

Pre-open indications: 1 HIT and 5 MISS

  • Applied Genetic Technologies (AGTC) closed down -$0.11 – miss;
  • Biostage (BSTG) closed up +$0.22 – miss;
  • bluebird bio (BLUE) closed up +$0.25 – miss;
  • Ionis Pharmaceuticals (IONS) closed down -$0.68 – miss;
  • ReNeuron (RENE.L) closed down -$2.50 – hit;
  • Verastem Oncology (VSTM) closed down -$0.05 – miss;

 

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

  • Wednesday: RENE.L (-$2.50), BOLD (-$2.32), QURE (-$1.47), ONCE (-$0.99) and EDIT (-$0.99);
  • Tuesday: BLFS (-$0.30), VCEL (-$0.18), MDXG )-$0.18), MESO (-$0.08) and ONVO (-$0.0226);
  • Monday: RENE.L (-$22.50), BLUE (-$6.86), SAGE (-$4.56), RARE (-$2.89) and RGNX (-$2.72);

Sector equities posting gains were:

  • Wednesday: SAGE (+$4.32), BMRN (+$0.22), BSTG (+$0.22), BLFS (+$0.15) and MDXG (+$0.12);
  • Tuesday: RENE.L (+$10.00), SAGE (+$7.62), BLUE (+$3.78), QURE (+2.41) and ALNY (+$2.01);
  • Monday: QURE (+$1.34), BLFS (+$0.47), ADRO (+$0.11), AXGN (+$0.08) and IONS (+$0.06);

 

The week’s percentage (%) indicators: 

  • Wednesday’s range of the 9 upside was +0.20% (STML) to +8.53% (BSTG) while the 31 downside ranged from -0.09% (ALNY) to -8.79% (BLCM);
  • Tuesday’s range of the 32 upside was +0.33% (CLBS) to +7.18% (EDIT) while the 8 downside ranged from -0.61% (KOOL) to -5.49% (MDXG);
  • Monday’s range of the 11 upside was +0.02% (ONCE) to +3.66% (PSTI) while the 31 downside ranged from -0.21% (XON) to -7.51% (BLCM);

 

2 flat – BCLI and CUR 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 +0.32%
  • Tuesday closed up +1.98 %
  • Monday closed down -1.40%
  • Friday closed down -0.64%
  • Thursday closed up +1.04%
  • Last Wednesday closed up +0.91%

 

May’s sessions:

Wednesday closed NEGATIVE with 31 decliners, 12 advancers, 0 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 8 decliners, 31 advancers, 4 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 31 decliners, 11 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 33 decliners, 8 advancers, 2 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 12 decliners, 29 advancers, 2 flat and 2 acquired (AST & OSIR);

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.