June 12, 2019 6:10pm
Still a question, what’s sustainable in this volatile market?
Pre-open indications: 8 HITs and 3 MISS (1 by a penny)
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.
CEOs should be re-thinking a motto: Duty, Honor and Shareholders – many have forgotten who they really work for
Markets and indexes:
- The Dow closed down -43.68 points or -0.17% to 26,004.83
- The S&P closed down -5.88 points or -0.20% at 2,879.84
- The NASDAQ was down -29.85 points or -0.38% to 7,792.72
Sector equities overcame their oversold condition after diving Tuesday following Monday’s upside post last Thursday and Friday’s gains.
I am STILL ... expousing CAUTION after a roll to the upside ... WHAT will keep share pricing up - new and I don't "smell" ...ANY!
Tuesday’s advance/decline line scenario of 45 covered companies:
- The open was negative with the A/DL at 11/29, 2 flats and 2 acquired (AST & OSIR);
- The mid-day was positive with an A/DL of 24/19 and 0 flat and 2 acquired;
- The close was positive with an A/DL of 26/17 and 0 flat and 2 acquired;
Pre-open post: “: gap up, gap down, what will fill the gaps? The test for the stock market will be whether major indexes can break through all-time highs.”
I also stated, “June’s sector trend is an admission that “our” universe is without any pricing sustainability which suppresses a value directional.”
Momentum was still based on low volume!
U.S. consumer prices rose just 0.1% last month, matching a Reuter’s estimate, the Labor Department said Wednesday. Core inflation, which strips out volatile components like food and energy prices, also rose 0.1%. The muted inflation numbers follow weaker-than-forecast employment and manufacturing data released last week <CNBC>.
The major indexes were all up more than 4% for the month, rebounding from a sharp sell-off in May amid improvements in U.S.-Mexico trade worries and expectations for looser monetary policy.
Sector focus remains largely attuned to trading on Wednesday as the lack of “quality” news leaves investors “clouded” about the short-term future!
Pre-open indications: 8 HIT and 3 MISS
- Applied Genetic Technologies (AGTC) closed up +$0.04 – hit;
- AxoGen (AXGN) closed up +$1.18 – hit;
- BioLife Solutions (BLFS) closed down -$0.19 – miss;
- bluebird bio (BLUE) closed down again -$1.00 – miss;
- CRISPR Therapeutics (CRSP) closed up +0.01 – hit;
- Editas Medicine (EDIT) closed up +$0.18 – hit;
- Intellia Therapeutics (NTLA) closed up +$0.22 – hit;
- Mesoblast (MESO) closed down -$0.01 – miss;
- ReNeuron (RENE.L) closed down -$12.50 – hit;
- Intrexon Corp (XON) closed up +$0.43 – hit;
- uniQure NV (QURE) closed up +$3.84 – hit;
What’s happening in the share pricing casino?
Worst-performers (bottom 5) were:
- Wednesday: RENE.L (-$12.500, BLUE (-$1.00), GBT (-$0.99), SAGE (-$0.87) and RARE (-$0.40);
- 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:
- Wednesday: QURE (+$3.94), BMRN (+$1.22), AXGN (+$1.18), IONS (+$1.08) and VCEL (+$0.83);
- Tuesday: RENE.L (+$15.000, XON (+$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:
- Wednesday: 6 out of the 26 upside had higher than the 3 month average volume;
- 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:
- Wednesday: 3 out of the 17 downside had higher than the 3 month average volume;
- 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:
- Wednesday’s range of the 26 upside was +0.02% (CRSP) to +36.41% (HSGX +$0.08) while the 17 downside ranged from -0.15% (MESO) to -5.10% (RENE.L);
- 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);
0 flat - 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 +0.61%
- Tuesday closed down -0.49%
- Monday closed down -0.60%
- Friday closed up +1.62%;
- Thursday closed down -0.98%;
- Last Wednesday closed up +0.17%;
Wednesday closed POSITIVE with 17 decliners, 26 advancers, 0 flats and 2 acquired (AST & OSIR);
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.