June 18, 2019 6:24pm
News: Intrexon Corporation (XON +$1.00) announced a $100 million partnership with Surterra Wellness to advance its cannabinoid production. The companies will join forces to push forward Surterra's cannabinoid production at a cost-effective, industrial scale utilizing Intrexon's proprietary yeast fermentation platform.
Pre-open indications: 2 HIT and 2 MISS
Insight about share pricing is understanding perception …
“What light through yonder window breaks?" I ask having thought about today’s upside trend, “don't swear by the moon” the sector replied
Markets and indexes:
- The Dow closed up +353.01 points or +1.35% to 26,465.54
- The S&P closed up +28.08 points or +0.97% at 2,917.75
- The NASDAQ was up +108.86 points or +1.39% to 7,953.88
The sector surged on Tuesday …
… As markets increased bets on a U.S.-China trade deal after President Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hope that the Fed will ease monetary policy later this year.
The Fed’s decision is scheduled to be announced Wednesday at 2 p.m. ET. Fed Chair Jerome Powell will also hold a news conference after the announcement <CNBC>.
Big issue (to me) … the S&P 500 has gained 6% so far this month, and is only about 1% from the all-time high hit in early May.
Part of the reason the sector is up today is because of the market moves, but also the anticipation around the Fed continuing to be very dovish.
Sector equities have been on incline … so far – this week (Monday and Tuesday) after last Friday’s decline following the previous Thursday and Wednesday’s upswing.
Let’s hope, the sector does NOT get ahead of itself and that the “machines” rule SELL on trending equities – the headwinds that are approaching are the end of the month with two (2) weeks left in Q2!
The issue is real news flow!
Tuesday’s advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 30/12 with 1 flat and 2 acquired;
- The mid-day was positive with an A/DL of 29/13 with 1 flat and 2 acquired;
- The close was positive with an A/DL of 33/9 and 1 flat and 2 acquired;
Pre-open post: “risky business; riding the upside trend, how safe is trading the highs higher?”
Pre-open indications: 2 HIT and 2 MISS
- BioLife Solutions (BLFS) closed up +$0.13 – hit;
- ReNeuron (RENE.L) closed down -$5.00 – miss;
- uniQure N.V. (QURE) closed down -$3.13 – hit;
- Sage Therapeutics (SAGE) closed up +$2.61 – miss;
Worst-performers (bottom 5) were:
- Tuesday: RENE.L (-$5.00), BLUE (-$4.38), QURE (-$3.13), AXGN (-$1.46) and MDXG (-$0.08);
- Monday: RENE.L (-$7.50), CLBS (-$0.29), KOOL (-$0.16), MESO (-$0.137) and HSGX (-$0.059); ` `
Posting gains (top 5) were:
- Tuesday: SAGE (+$2.61), ONCE (+$2.26), GBT (+$2.06), RGNX (+$1.60) and ALNY (+$1.52);
- Monday: QURE (+$8.59), SAGE (+$5.52), BLUE (+$5.04), CRSP (+$3.80) and RARE (+$3.74);
Upside volume stats:
- Tuesday: 9 out of the 33 upside had higher than the 3 month average volume;
- Monday: 10 out of the 33 upside had higher than the 3 month average volume;
Downside volume stats:
- Tuesday: 3 out of the 9 downside had higher than the 3 month average volume;
- Monday: 3 out of the 10 downside had higher than the 3 month average volume;
The week’s percentage (%) indicators:
- Tuesday’s range of the 33 upside was +0.05% (PSTI) to +13.16% (XON) while the 9 downside ranged from -1.41% (MESO) to -12.25% (HSGX -$0.029);
- Monday’s range of the 33 upside was +0.04% (PSTI) to +25% (VSTM +$0.35) while the 10 downside ranged from -0.11% (BLFS) to -20% (HSGX -0.059);
1 flat – BSTG with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Tuesday closed up +1.38%
- Monday closed up +2.96%
- Friday closed down -0.93%
- Thursday closed up +0.75%
- Wednesday closed up +0.61%
- Last Tuesday closed down -0.49%
Tuesday closed POSITIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);
Monday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);
Friday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);
Thursday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);
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.