June 24, 2019 7:05pm

Optimism is at low ebb, caution is the byword as low volume sets the trend

As I stated, “about the iShares NASDAQ Biotechnology (IBB) indicator: I’m still feeling gravity will be a force” and … it was!

Pre-open indications: 3 HIT and 0 MISS

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector acts like it’s their blueprint. Stocks have lately been alternating between the horrific and the benign.

 

It’s time for a bounce back, today’s market impacts Tuesday; if you were a subscriber … you would understand why!

 

Markets and indexes:

  • The Dow closed up +8.41 points or +0.03% to 26,727.54
  • The S&P closed down -5.11 points or -0.17% at 2,945.35
  • The NASDAQ was down -28.01 points or -0.32% to 8,005.70

 

Henry’omics:

The market slowed as the Dow flat lined and the S&P and NASDAQ dived post Friday’s “quadruple witching” while the sector got hammered yet again!

There is NO new except in a few cases of a BioMarin Pharmaceuticals (BMRN -$2.01) got $15 M from Pfizer (PFE) on Talzenna’s EU approval and Pluristem (PSTI +$0.01) transitioned their CEO roles while Mesoblast (MESO +$0.34) received an Orphan drug Designation.

While trade optimism could spell a resurgence of indexes!

Understand indexes were up +7% each in June. Those gains have erased a massive sell-off from May, which was fueled by China and the U.S. hiking tariffs on each other’s products. The S&P 500 hit a record on Friday, reaching a high of 2,964.15.

But, it could be a set-up for the oversold to rise …

 

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

  • The open was negative with an A/DL of 15/23 with 4 flats and 2 acquired;
  • The mid-day was negative with an A/DL of 6/37 with 0 flat and 2 acquired;
  • The close was negative with an A/DL of 7/35 and 1 flat and 2 acquired;

 

Pre-open post: “every or any which was … Is a term used to emphasize that something happens or might happen in a lot of different ways in my sector’s “universe”– whether this market works to our advantage and not! That’s my 45 covered companies!”

I also stated, “The month and quarter are ending – step lightly and carefully! The iShares NASDAQ Biotechnology (IBB) indicator: I’m still feeling gravity will be a force” and … it was!

 

Pre-open indications: 3 HIT and 0 MISS

Mesoblast (MESO) closed up +$0.34 – hit;

ReNeuron (RENE.L) closed down again -$1.00 – hit;

Vericel (VCEL) closed down -$0.89 - hit;

 

Worst-performers (bottom 5) were:

  • Monday: QURE (-$7.58), SAGE (-$5.82), ONCE (-$3.16), RGNX (-$3.06) and BOLD (-$3.02);
  • Friday: RENE.L (-$1.50), RARE (-$0.88), BLFS (-$0.59), IONS (-$0.59) and XON 9-$0.44);

Posting gains (top 5) were:

  • Monday: MESO (+$0.34), GBT (+$0.29), KOOL (+$0.04), CLBS (+$0.03) and ONVO (+$0.01);
  • Friday: GBT (+$3.62), BLUE (+$2.77), ONCE (+$2.06), BMRN (+$1.55) and SAGE (+$1.55);

 

Upside volume stats:  to compare

  • Monday: 2 out of the 7 upside had higher than the 3 month average volume;
  • Friday: 10 out of the 22 upside had higher than the 3 month average volume;

Downside volume stats:

  • Monday: 8 out of the 35 downside had higher than the 3 month average volume
  • Friday: 5 out of the 19 downside had higher than the 3 month average volume;

 

The percentage (%) indicators: 

  • Monday’s range of the 7 upside was +0.46% (GBT) to +7.28% (MESO) while the 35 downside ranged from -0.49% (RENE.L) to -11.71% (CUR -$0.04);
  • Friday’s range of the 22 upside was +0.53% (AGTC) to +13.84% (VSTM) while the 19 downside ranged from -0.40% (SLDB) to -5.82% (KOOL -$0.17);

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

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Monday closed down -2.13%
  • Friday closed up +0.76%

 

June’s sessions:

Monday closed NEGATIVE with 35 decliners, 7 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 19 decliners, 22 advancers, 2 flats and 2 acquired (AST & OSIR);

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 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.