June 11, 2019 5:43pm
Trading sentiment and volume are the dynamic ticks: 3 out of the 7 upside had higher than the 3 month average volume and 11 out of the 32 downside had higher than the 3 month average volume
Pre-open indications: 7 HITs and 1 MISS
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.
Check your performance against my hits versus misses’ trading!
Markets and indexes:
- The Dow closed down -14.04 points or -0.05% to 26,048.64
- The S&P closed down -1.01 points or -0.04% at 2,885.72
- The NASDAQ was down -0.60 points or -0.01% to 7,822.57
Sector equities dived Tuesday after Monday’s upside following last Thursday and Friday’s gains as the overbought felt the pain of share pricing achievement.
Tuesday’s advance/decline line scenario of 45 covered companies:
- The open was positive with the A/DL at 24/17, 2 flats and 2 acquired (AST & OSIR);
- The mid-day was painfully negative with an A/DL of 8/35 and 0 flat and 2 acquired;
- The close was negative with an A/DL of 7/32 and 4 flats and 2 acquired;
Sentiment turned so negative in May and now, as stock began a rebound in June, we’re now seeing optimism being replaced with trader pessimism or investor complacency!
Pre-open post: “trading dollars at work, not new investor monies.”
I also stated, “Although after two (2) positive closes to end last week, Monday “rang” a neutral tone; so be prepared for some “skinny” movement! The question of the day or this week – WHAT are we pinning our share pricing hopes on news (?) , milestones or catalysts (?) or the fact that the … MACHINES (computer driven trading) are “RULING”?”
From the data side, U.S. producer prices increased solidly for a second straight month in May, in line with expectations, pointed to a steady pickup in underlying inflation pressures.
The market is betting the Fed will cut interest rates in July and cut two more times this year as Trump's hard bargaining on trade with Beijing and others could push the economy back into recession <Reuters>.
Cell and gene therapy sector investors seem reluctant to push stocks higher without catalyst for support; I believe they are frozen as trading outweighs any investing – it’s fear!
Pre-open indications: 7 HIT and 1 MISS
- AxoGen (AXGN) closed down -$0.82 – miss;
- bluebird bio (BLUE) closed up +$0.15 – hit;
- CRISPR Therapeutics (CRSP) closed down -$0.86 – hit;
- Editas Medicine (EDIT) closed down -$0.50 – hit;
- Intellia Therapeutics (NTLA) closed down -$0.45 – hit;
- Mesoblast (MESO) closed up +$0.14 – hit;
- ReNeuron (RENE.L) closed up +$15.00 – hit;
- Intrexon Corp (XON) closed up +$0.45 – hit;
What’s happening in the share pricing casino?
Worst-performers (bottom 5) were:
- Tuesday: QURE (-$9.01), SAGE (-$3.04), RARE (-$1.77), RGNX (-$1.61) and GBT (-$1.43);
- Monday: RENE.L (-$25.00), ONCE (-$9.14), BLUE (-$8.12), SAGE (-$3.20) and GBT (-$2.71);
Posting gains (top 5) were:
- Tuesday: RENE.L (+$15.000, XOPN (+$0.45), BLUE (+$0.15), MESO (+$0.14) and ADRO (+$0.06);
- Monday: CRSP (+$1.50), RARE (+$0.57), BMRN (+$0.470, BLCM (+$0.47) and ALNY (+$0.32);
Upside volume stats:
- Tuesday: 3 out of the 7 upside had higher than the 3 month average volume;
- Monday: 6 out of the 21 upside had higher than the 3 month average volume;
Downside volume stats:
- Tuesday: 11 out of the 32 downside had higher than the 3 month average volume;
- Monday: 9 out of the 21 downside had higher than the 3 month average volume;
The week’s percentage (%) indicators:
- Tuesday’s range of the 7 upside was +0.13% (BLUE) to +10.6% (HSGX +$0.02) while the 32 downside ranged from -0.02% (BMRN) to -12.02% (QURE);
- Monday’s range of the 21 upside was +0.35% (IONS) to +25.06% (ONVO +$0.11) while the 21 downside ranged from -0.63% (VYGR) to -9.80% (RENE.L);
4 flat – BCLI, BTX, CUR and VSTM with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Tuesday closed down -0.49%
- Monday closed down -0.60%
- Friday closed up +1.62%;
- Thursday closed down -0.98%;
- Wednesday closed up +0.17%;
- Last Tuesday closed up +1.93%;
Tuesday closed NEGATIVE with 32 decliners, 7 advancers, 4 flats and 2 acquired (AST & OSIR);
Monday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);
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.