RegMed Investors’ (RMi) closing bell: did or will the dead cat bounce?

June 5, 2019 5:42pm

As I had stated, “Anticipate the highs but, strength has its issues of being sold into! Also watch … volumes!”

Pre-open indications: 7 HITs and 2 MISS (yet made $ with QURE strength sale at close)

It’s not hard to be right so often, it’s about refining expectation, defining insight and NOT being indentured to ANY financial institution! That’s why my “quantamental” blend of the two styles has become common parlance among investors and traders.

Don’t get comfortable, today’s market impacts Thursday; If you were a subscriber … you would understand why!

Markets and indexes:

• The Dow closed up +207.39 points or +0.82% to 25,539.57
• The S&P closed up +22.88 points or +0.82% at 2,826.15
• The NASDAQ was up +48.36 points or +0.64% to 7,575.48

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Henry’omics:

While the sector fell on profiteering from strength and low volume; markets added to strong week-to-date performance on Wednesday as investors grew even more confident that the Fed will lower interest rates this year to reignite an economy wounded by trade battles.

Fed Chair Jerome Powell opened the door to rate cuts while saying the central bank will keep an eye on current developments in the economy, and would do what it must to “sustain the expansion. ”

Private payrolls increased by just 27,000 in May, economists expected an increase of 173,000 jobs. May was the worst since March 2010.

Pre-open post: “welcoming the upside; but, understand profits will be taken as many equities experience strength and increasing volume.”

It’s not hard to be right so often, it’s about refining expectation, defining insight and NOT being indentured to ANY financial institution! That’s why the term “quantamental,” a blend of the two styles, may soon become common parlance among ordinary investors.

Remember, there’s a difference between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules.

After gains, there’s pain; followed by advances, declines and other progressions or was it regressions?

Pre-open indications: 7 HIT and 2 MISS

• Alnylam Pharmaceuticals (ALNY) closed up +$1.75 – hit;
• Applied Genetic Technologies (AGTC) closed flat at$3.68 with 41.1 K shares traded – hit;

• BioMarin Pharmaceuticals (BMRN) closed down -$0.18 – miss;
• bluebird bio (BLUE) closed down -$4.67 – hit;
• CRISPR Therapeutics (CRSP) closed up +$0.27 – hit;
• Editas Medicine (EDIT) closed down -$0.35 – hit;
• Intellia Therapeutics (NTLA) closed down -$0.03 – hit;
• uniQure NA (QURE) closed up +$3.84 – miss, but made money in close sell;
• ReNeuron (RENE.L) closed down -$22.00 – hit;

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

• The open was negative with the A/DL at 15/26, 2 flats and 2 acquired (AST & OSIR);
• The mid-day was negative with an A/DL of 15/25 and 2 flat and 2 acquired;
• The close was negative with an A/DL of 17/24 and 2 flats and 2 acquired;

Upside volume stats:  review the numbers …

• Wednesday: 3 out of the 17 upside had higher than the 3 month average volume;
• Tuesday: 10 out of the 32 upside had higher than the 3 month average volume;
• Monday: 4 out of the 25 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 24 downside had higher than the 3 month average volume;
• Tuesday: 4 out of the 10 downside had higher than the 3 month average volume;
• Monday: 7 out of the 17 downside had higher than the 3 month average volume;

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

• Wednesday: RENE.L (-$22.00), BLUE (-$4.67), ONCE (-$1.58), RARE (-$1.45) and FATE (-$0.94);
• Tuesday: RENE.L (-$5.00), AGTC (-$0.20), STML (-$0.100, BCLI (-$0.03) and ADRO (-$0.02);
• Monday:  RENE.L (-$5.00), SAGE (-$2.72), GBT (-$2.32), ADRO (-$1.31) and VYGR (-$2.12);

Sector equities posting gains were:

• Wednesday: QURE (+$3.46), SAGE (+$2.160, ALNY (+$1.75), BOLD (+$1.31) and RGNX (+$1.26);
• Tuesday: BLUE (+$7.02), SAGE (+$6.10), QURE (+$6.10), RARE (+$2.85) and VYGR (+$1.93);
• Monday: QURE (+$5.33), $BLUE (+$2.50), RGNX (+$1.90), RARE (+$1.21) and MDXG (+$0.84);

The week’s percentage (%) indicators: 

• Wednesday’s range of the 17 upside was +0.11% (SGMO) to +14.40% (KOOL +$0.36 post reverse) while the 24 downside ranged from -0.20% (NTLA) to -12.21% (ONVO);
• Tuesday’s range of the 32 upside was +0.34% (EDIT) to +9.44% (QURE) while the 10 downside ranged from -0.68% (CLBS) to -5.69% (HSGX);
• Monday’s range of the 25 upside was +0.01% (ONCE) to +18.46% (MDXG) while the 17 downside ranged from -0.21% (BMRN) to -40.31% (ADRO);

2 flat – AGTC and BSTG 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 +0.17 %;
• Tuesday closed up +1.93%;
• Monday closed up +1.08%;

June’s sessions:

Wednesday closed NEGATIVE with 24 decliners, 17 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 17 decliners, 25 advancers, 1 flat and 2 acquired (AST & OSIR);

Q2/19 so far:

• In May, there were 14 negative, 1 holiday and 8 positive closes;
• In April, there has been 10 positive and 11 negative closes;

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.