June 6, 2019 5:44pm
Fundamentals let us down yet again, there is just no support even with news as any strength is to be sold into
Pre-open indications: 2 HITs and 7 MISS
Don’t get comfortable, today’s market impacts Friday and clarity is trading with a discount; also markets are positioning for a weaker job’s data report … be a subscriber and you would understand why!
Tariff imposition, delays and restrains with trade talks are outranking the hope of life extensions and equity safe havens
Markets and indexes:
- The Dow closed up +181.09 points or +0.71% to 25,720.66
- The S&P closed up +17.34 points or +0.61% at 2,843.49
- The NASDAQ was up +40.08 points or +0.53% to 7,5615.55
Sector equities got smashed to pulp as markets rose on Thursday while investors speculated that the U.S. and Mexico are getting closer to a resolution over immigration issues that would delay the tariffs threatened by President Trump.
Fundamentals and charts are not even close to being helpful while volume remains low and deflates any highs!
The U.S. had asked Mexico to keep Central American asylum seekers and require migrants without proper documentation to stay in Mexico “for the duration of their immigration proceedings <CNBC>.
Markets hit their highs of the day after it was reported that the U.S. is considering a postponement to Trump’s 5% tariff on all Mexican imports after the country’s negotiators asked for more time to hash out a deal. The tariff is set to kick in on Monday <Bloomberg News>.
Pre-open post: “eking out an upside after yesterday’s profiteering from strength and low volume, the starting gates re-open.”
It’s a highly fluid situation because we don’t know how any resolution on trade and tariffs will turn out but, the sector continues to be oversold and a comeback should/could be in store as the “machines” tabulate the potential of an upside!
Pre-open indications: 2 HIT and 7 MISS
- Alnylam Pharmaceuticals (ALNY) closed up +$0.25 – miss;
- Applied Genetic Technologies (AGTC) closed down -$0.08 – miss;
- BioMarin Pharmaceuticals (BMRN) closed down -$3.10 – miss;
- bluebird bio (BLUE) closed down -$2.76 – miss;
- CRISPR Therapeutics (CRSP) closed down -$0.28 – miss;
- Editas Medicine (EDIT) closed up +$0.10 – hit;
- Intellia Therapeutics (NTLA) closed down -$0.40 – miss;
- uniQure NA (QURE) closed down -$2.20 – hit;
- ReNeuron (RENE.L) closed down -$10.50 – miss;
Tuesday’s advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL at 12/28, 2 flats 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 5/37 and 1 flat and 2 acquired;
Upside volume stats: review the numbers, there is a message …
- Thursday: 2 out of the 5 upside had higher than the 3 month average volume;
- 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 …
- Thursday: 6 out of the 37 downside had higher than the 3 month average volume;
- 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:
- Thursday: RENE.L (-$10.50), BLUE (-$3.70), BMRN (-$2.86), IONS (-$2.80) and QURE (-$2.20);
- 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:
- Thursday: ALNY (+$0.45), EDIT (+$0.32), KOOL (+$0.21), BOLD (+$0.14) and HSGX (+$0.0030)
- 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:
- Thursday’s range of the 6 upside was +0.38% (BOLD) to +7.17% (KOOL, post reverse) while the 37 downside ranged from -0.05% (ADVM) to -3.85% (RENE.L);
- 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);
1 flat – ATHX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Thursday closed down -0.98%;
- Wednesday closed up +0.17%;
- Tuesday closed up +1.93%;
- Monday closed up +1.08%;
Thursday closed NEGATIVE with 37 decliners, 5 advancers, 1 flat and 2 acquired (AST & OSIR);
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.