June 7, 2019 6:09pm
Traders rode the weakness of past sessions (2 out of 5) within the week which heightens the likelihood of a continued volatile climate as upside volume remains weak
Pre-open indications: 7 HITs and 2 MISS
The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether market reaction to tariffs and trade issues is short-lived or will Friday’s upside initiate another downdraft
RMi outlines preludes and aftermaths defining the daily dose of fundamental, investment thesis and objectivity!
Markets and indexes:
- The Dow closed up +263.28 points or +1.02% to 25,983.94
- The S&P closed up +29.85 points or +1.05+% at 2,873.34
- The NASDAQ was up +126.55 points or +1.66% to 7,742.10
Sector equities jumped on Friday based on weekly losses but, building on weekly market gains, as weak “jobs” data increased the odds of easier monetary policy from the Fed.
The U.S. economy added 75,000 jobs in May, marking the second time in four months that jobs growth totaled less than 100,000.
The major indexes posted sharp gains for the week. The Dow jumped 4.7%, its biggest weekly gain since November snapping a six-week losing streak. The S&P 500 was up +4.4% and NASDAQ was up 3.9% this week.
Traders are keeping an” ear to the ground” as trade talks continue between U.S. and Mexico officials.
Pre-open post: “jobs report Friday; Vertex (VRTX) acquires pre-clinical Duchenne muscular dystrophy gene editor, Exonics, giving a run for the money to Sarepta Therapeutics; Solid Biosciences (SLDB -$0.12) and Wave Life Sciences (WVE) watch out!”
I also stated, “Traders will be monitoring Friday’s ongoing talks, after stocks reached their high Thursday on reports that the U.S. was considering …delaying the imposition ….of a 5% tariff on Mexican imports, which is set to take effect on Monday “– maybe!
Volume is STILL low while sentiment is sensitive to the oversold leading a few to an overbought condition!
Pre-open indications: 7 HIT and 2 MISS
- Alnylam Pharmaceuticals (ALNY) closed down -$0.45 – hit;
- Applied Genetic Technologies (AGTC) closed up +$0.03 – hit;
- BioMarin Pharmaceuticals (BMRN) closed up +$0.15 – hit;
- bluebird bio (BLUE) closed up +$4.42 – hit;
- CRISPR Therapeutics (CRSP) closed up +$5.63 – miss;
- Editas Medicine (EDIT) closed up +$1.83 – hit;
- Intellia Therapeutics (NTLA) closed up +$0.80 – hit;
- uniQure NA (QURE) closed up +$3.55 – miss;
- ReNeuron (RENE.L) closed down -$7.50 – hit;
Tuesday’s advance/decline line scenario of 45 covered companies:
- The open was positive with the A/DL at 27/14, 2 flats and 2 acquired (AST & OSIR);
- The mid-day was positive with an A/DL of 29/11 and 3 flats and 2 acquired;
- The close was positive with an A/DL of 31/10 and 2 flats and 2 acquired;
Upside volume stats: review the numbers, there is a message …
- Friday: 6 out of the 31 upside had higher than the 3 month average volume;
- 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 …
- Friday: 2 out of the 10 downside had higher than the 3 month average volume;
- 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:
- Friday: RENE.L (-$7.50), AXGN (-$0.50), ALNY (-$0.40), KOOL (-$0.06, after reverse) and MESO (-$0.06);
- 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:
- Friday: CRSP (+$5.63), BLUE (+$4.42), QURE (+$3.55), RGNX (+$2.61) and BOLD (+$2.48);
- 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:
- Friday’s range of the 31 upside was +0.19% (BMRN) to +15.11% (CRSP) while the 10 downside ranged from -0.27% (BLFS) to -5.48% (CUR);
- 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);
2 flat – ATHX and BSTG 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 +1.62%;
- Thursday closed down -0.98%;
- Wednesday closed up +0.17%;
- Tuesday closed up +1.93%;
- Monday closed up +1.08%;
Friday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);
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.