May 24, 2019 5:54pm

Investing remains vulnerable to headline news; however, there is more to uncertainty and volatility on the way while the “machines” dampen the sector

U.S. markets will close on Monday for Memorial Day, a federal holiday.

Pre-open indications: 3 HITs and 1 MISS

Who is defining the metrics for investors and keeps you notified of the sector and market fluctuations?  

 

If you think you understand perception, review your “positions” and think again and again. There is a “heck” of a lot of negative sentiment; liquidity remains a cause for concern!

 

Markets and indexes:

  • The Dow closed up +95.22 points or +0.37% to 25,585.69
  • The S&P closed up +3.92 points or +0.14% at 2,826.05
  • The NASDAQ was up +9.73 points or +0.11% to 7,637.01

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Henry’omics:

Equity markets rebounded on Friday from the previous day's sharp fall, after President Trump said complaints against China's Huawei might be resolved within the framework of a trade deal.

Sector equities and market indexes rose on Friday – weakly on low volume and mild volatility!

But notched weekly losses as investors worried about the invest ability of “our” universe!

Friday’s gains were not enough to offset this week’s losses.

Think, why have investors left the “field” and trader’s rule the sector’s up and downs – it’s the BELIEVIBILTY of many management’s … “stories” which are usually non-supportive

While, the Dow dropped 0.68% this week to post its fifth consecutive weekly decline, its longest streak since 2011; the S&P 500 fell -1.16% and NASDAQ fell -2.29% - a third straight week of losses, their longest slide since December 2018.

Economic data:

  • U.S. durable goods orders dropped 2.1% last month amid a slowdown in exports and a buildup in inventories. This is the latest economic data set showing cracks in the economy while the world’s largest economies engage in a trade war. IHS Markit said Thursday that U.S. manufacturing activity fell to a nine-year low.

 

Pre-open post: “rebound; the reality of “our” universe or sector is that bottoms bounce, sometimes

 

Pre-open indications: 3 HIT and 1 MISS

  • Applied Genetic Technologies (AGTC) closed up +$0.28 – hit;
  • bluebird bio (BLUE) closed up +$1.43 – hit;
  • Ionis Pharmaceuticals (IONS) closed down -$2.42 – miss;
  • ReNeuron (RENE.L) closed up +$29.00 – hit;

 

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

  • The open was positive with the A/DL at 30/11, 2 flats and 2 acquired (AST & OSIR);
  • The mid-day was positive with an A/DL of 26/16 and 1 flat and 2 acquired;
  • The close was positive with an A/DL of 29/12 and 2 flats and 2 acquired;

 

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

  • Friday: 7 out of the 29 upside had higher than the 3 month average volume;
  • Thursday: 0 out of the 7 upside had higher than the 3 month average volume;
  • 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 …

  • Friday: 3 out of the 12 downside had higher than the 3 month average volume;
  • Thursday: 8 out of the 34 downside had higher than the 3 month average volume;
  • 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;

 

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

  • Friday: IONS (-$2.42), FIXX (-$0.43), SLDB (-$0.21), BLFS (-$0.10) and ONVO (-0.079);
  • Thursday: BLUE (-$3.58), RENE.L (-$2.50), CRSP (-$2.01), RARE (-$2.01) and CLLS (-$1.48);
  • 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:

  • Friday:  RENE.L (+$29.00), RGNX (+$3.16), BMRN (+$2.10), GBT (+$1.85) and ONCE (+$1.49);
  • Thursday: ONCE (+$0.78), QURE (+$0.67), BOLD (+$0.45), ALNY (+$0.19) and ATHX (+$0.05);
  • 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: 

  • Friday’s range of the 29 upside was +0.07% (SAGE) to +7.60% (AGTC) while the 12 downside ranged from -0.57% (BLFS) to -14.62% (ONVO);
  • Thursday’s range of the 7upside was +0.15% (ALNY) to +2.76% (ATHX) while the 34 downside ranged from -0.15% (GBT) to -39.46% (ONVO);
  • 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 – BSTG and XON with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Friday closed up +0.41%
  • Thursday closed down -0.87%
  • Wednesday closed up +0.32%
  • Tuesday closed up +1.98 %
  • Monday closed down -1.40%
  • Last Friday closed down -0.64%

 

May’s sessions:

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

Thursday closed NEGATIVE with 34 decliners, 7 advancers, 2 flats and 2 acquired (AST & OSIR);

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.