May 31, 2019 8:51pm

Friday’s declines added to a stifling week and month for sector equities

Pre-open indications: 4 HITs and 1 MISS

What’s wrong with be right so often?

A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.

 

Memo to Investors: What goes DOWN will go UP – just about timing!

 

Markets and indexes:

  • The Dow closed down -354.84 points or -1.47% to 24,815.04
  • The S&P closed down -36.80 points or -1.32% at 2,752.06
  • The NASDAQ was down -114.57 points or -1.51% to 7,453.15

`

Henry’omics:

Sector equities dumped …

As market indexes fell on Friday as investors feared President Donald Trump’s surprise threat of tariffs on all Mexico imports, amid a worsening trade war with China, could risk sending the U.S. economy into a recession.

  • Washington anticipates … imposing a 5% tariff from June 10, which would rise steadily to 25% until illegal immigration across the southern border was stopped, Trump tweeted late on Thursday;
  • Mexican President Andres Manuel Lopez Obrador responded by urging his U.S. counterpart to back down.

The S&P 500 ended the month down 6.6% as volatility spiked after trade talks fell apart with China and rhetoric on both sides worsened in May.

The Nasdaq closed below its 200-day moving averages for the first time since March 8, seen as a strong technical support level that could presage further losses.

 

Pre-open post: “another headline market mover, not in healthcare. The newest tariff “talk” represents a train wreck for the equity markets; let May end and run away so, June can roar!

Expectation will be the word for 2019 – meeting the unknowns with soon to be known will be the subject of investing decisions through this year.

 

Pre-open indications: 4 HIT and 1 MISS

  • BioMarin Pharmaceuticals (BMRN) closed down -$1.14 – miss;
  • CRISPR Therapeutics (CRSP) closed down -$1.02 – hit;
  • Editas Medicine (EDIT) closed down -$0.68 – hit;
  • Intellia Therapeutics (NTLA) closed down -$0.62 – hit;
  • ReNeuron (RENE.L) closed up +$10.00 – hit;

 

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

  • The open was negative with the A/DL at 7/34, 7 flats and 2 acquired (AST & OSIR);
  • The mid-day was negative with an A/DL of 5/37 and 1 flat and 2 acquired;
  • The close was negative with an A/DL of 12/30 and 1 flat and 2 acquired;

 

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

  • Friday: 5 out of the 12 upside had higher than the 3 month average volume;
  • Thursday: 6 out of the 16 upside had higher than the 3 month average volume;
  • Wednesday: 5 out of the 12 upside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 16 upside had higher than the 3 month average volume;
  • Monday was a holiday

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

  • Friday: 3 out of the 30 downside had higher than the 3 month average volume;
  • Thursday: 3 out of the 23 downside had higher than the 3 month average volume;
  • Wednesday: 9 out of the 28 downside had higher than the 3 month average volume;
  • Tuesday: 8 out of the 27 downside had higher than the 3 month average volume;
  • Monday was a holiday

 

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

  • Friday: RARE (-$2.12), ONCE (-$1.50), GBT (-$1.31), ALNY (-$1.19) and BMRN (-$1.14);
  • Thursday: RENE.L (-$5.00), RGNX (-$2.93), QURE (-$2.92), SAGE (-$2.14) and BLUE (-$1.72);
  • Wednesday: RENE.L (-$15.00), RGNX (-$2.27), BMRN (-$1.55), QURE (-$1.36) and BLUE (-$1.35);
  • Tuesday: BMRN (-$4.57), QURE (-$1.20), SAGE (-$1.03), ALNY (-$0.80) and BLFS (-$0.77);
  • Monday was a market holiday

Sector equities posting gains were:

  • Friday: RENE.L (+$10.00), QURE (+$1.80), IONS (+$0.88), SLDB (+$0.32) and ADRO (+$0.15);
  • Thursday: MDXG (+1.185), RARE (+$1.13), ALNY (+$1.08), GBT (+$0.90) and ADVM (+$0.58);
  • Wednesday: BLFS (+$0.78), GBT (+$0.22), AXGN (+$0.20), FIXX (+$0.18) and ADRO (+$0.18);
  • Tuesday: RENE.L (+$10.00), RGNX (+$3.28), FATE (+$1.28), GBT (+$1.04) and ONCE (+$0.80);
  • Monday was a market holiday;

 

The week’s percentage (%) indicators: 

  • Friday’s range of the 12 upside was +0.23% (BLFS) to +12.04% (HSGX) while the 30 downside ranged from -0.08% (SAGE) to -31.35% (ONVO);
  • Thursday’s range of the 16 upside was +0.21% (NTLA) to +103.36% (ONVO +$0.40) while the 23 downside ranged from -0.09% (PSTI) to -10.14% (ADRO);
  • Wednesday’s range of the 12 upside was +0.21% (SGMO) to +5.50% (ADRO) while the 28 downside ranged from -0.12% (SAGE) to -14.74% (ONVO);
  • Tuesday’s range of the 16 upside was +0.07% (RARE) to +7.19% (RGNX) while the 27 downside ranged from -0.09% (ONVO) to -12.71% (BLCM);
  • Monday was a holiday

1 flat –VSTM with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Friday closed down -1.78%;
  • Thursday closed up +0.04%;
  • Wednesday closed down -1.12%;
  • Tuesday closed down -1.25%;
  • Last Monday was a holiday

 

May’s sessions:

Friday closed NEGATIVE with 30 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 23 decliners, 16 advancers, 4 flats and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 28 decliners, 12 advancers, 3 flats and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 27 decliners, 16 advancers, 0 flats and 2 acquired (AST & OSIR);

Monday was a market holiday;

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.