Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: the problem today was the sector folded with machines stuffing the tickets

June 20, 2019 6:52pm

Even the oversold became further downtrodden as volume continued to be weak

Pre-open indications: 1 HIT and 5 MISS

The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether expectation of the month and quarter’s (Q2) initiate a slow downdraft.

Don’t get comfortable, today’s market impacts Friday; If you were a subscriber … you would understand why!

Markets and indexes:

The Dow closed up +249.17 points or +0.94% to 26,753.17
The S&P closed up +27.72 points or +0.95% at 2,954.18
The NASDAQ was up +64.02 points or +0.80% to 8,051.34

Henry’omics:

I don’t think that today’s sector move is due to yesterday’s Fed move; the sector purged again after Wednesday’s decline following Tuesday and Monday’s surge …

A record high, the S&P 500 as investors digested a signal from the Fed of potential U.S. interest rate cuts as soon as its next meeting. There have been two drivers of the market gains this month: the expectations for the Fed to get more dovish; and optimism over the potential for some type of trade progress with China <Reuters>.

The sector has taken a downward turn with NO real reason to SELL; the oversold are glaring but, the month and Q2 are about to end – are funds positioning?

The theme of the day is to prepare to cherry pick the oversold although many are going to stay under pressure as the quarter ends.

Wednesday’s advance/decline line scenario of 45 covered companies:

The open was negative with an A/DL of 16/27 with 0 flat and 2 acquired;
The mid-day was negative with an A/DL of 14/28 with 1 flat and 2 acquired;
The close was negative with an A/DL of 14/29 and 0 flat and 2 acquired;

Pre-open post: “the sector regenerates like a phoenix; rising from the ashes of yesterday’s trades.” --- Except it didn’t rise, my miss yet, I will be bottom fishing!

Pre-open indications: 1 HIT and 5 MISS

ReNeuron (RENE.L) closed down -$12.50 – hit;
Vericel (VCEL) closed up +$0.43 – miss;
Three CRISPR equities: Intellia Therapeutics (NTLA -$0.08), Editas Medicine (EDIT -$0.29) and CRISPR Therapeutics (CRSP -$2.50) – miss on all three (3);
Verastem (VSTM) closed down -$0.31 as their CEO “resigned” – miss;

Worst-performers (bottom 5) were:

Thursday: RENE.L (-$12.50), CRSP (-$2.60), BLUE (-$2.580, VYGR (-$0.90) and SAGE (-$0.73);
Wednesday: RENE.L (-$17.50), CRSP (-$1.25), RGNX (-$1.08), ALNY (-$1.05) and FIXX (-$0.97);
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:

Thursday: QURE (+$3.42), ALNY (+$1.470, BMRN (+$1.34), GBT (+$0.83) and RGNX (+$0.72);
Wednesday: GBT (+$2.25), BLUE (+$1.36), ONCE (+$1.27), RARE (+$0.97) and VCEL (+$0.63);
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:

Thursday: 2 out of the 14 upside had higher than the 3 month average volume;
Wednesday: 4 out of the 15 upside had higher than the 3 month average volume;
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:

Thursday: 9 out of the 29 downside had higher than the 3 month average volume;
Wednesday: 4 out of the 26 downside had higher than the 3 month average volume;
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:

Thursday’s range of the 14 upside was +0.23% (RARE) to +4.42% (QURE) while the 29 downside ranged from -0.20% (ONCE) to -16.32% (VSTM);
Wednesday’s range of the 15 upside was +0.13% (BOLD) to +4.40% (VSTM) while the 26 downside ranged from -0.04% (VYGR) to -7.37% (RENE.L);
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);

0 flat – with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

The iShares NASDAQ Biotechnology (IBB) indicator:

Thursday closed up +0.42%
Wednesday closed up +0.57%
Tuesday closed up +1.38%
Monday closed up +2.96%
Friday closed down -0.93%
Last Thursday closed up +0.75%

June’s sessions:

Thursday closed NEGATIVE with 29 decliners, 14 advancers, 0 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 26 decliners, 15 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE 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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

What's Happening Today

1 hour 13 min ago
RegMed Investors (RMi) Closing Bell: a tough week; tied to cross-currents of geopolitical conflicts and recurring inflation

12 hours 56 min ago
RegMed Investors’ (RMi) pre-open: market, market and the sector pullbacks are driven by Israel retaliation against Iran tempered expectations for a rate cut

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.