June 26, 2019 6:17pm

Volume and any strength splashed, taking the Advance/Decline (A/D) line with it as sentiment drained any recovery for six (6) sessions in a row of my 45 covered “rebels”

Pre-open indications: 2 HITs and 0 MISS

Company news is more than quiet, it’s deadening – it’s also very clear many are protectively inaudible however, playing defense has been a road to many a ruin!


 

Over time periods of days, months and quarters; stock pricing go up and down depending on the mood of the market. Over longer time periods, stocks follow the fundamentals of the underlying companies – we would hope?

 

Markets and indexes:

  • The Dow closed down -11.40 points or -0.04% to 26,536.82
  • The S&P closed down -3.50 points or -0.12% at 2,913.78
  • The NASDAQ was up +25.25 points or +0.32% to 7,909.97

 

Henry’omics:

The sector was hammered with yet another bottom as the month and the quarter (Q2) come to an end – in three (3) day’s including today.

The dollar edged higher and European shares fell as traders curbed expectations of an aggressive U.S. interest rate cut in July, while markets traded little changed on mixed signals over China-U.S. trade talks at the G20 summit in Japan <Reuters>.

The S&P 500 posted a four-day losing streak on Wednesday — its longest slide since early May.

There is NO news that could rekindle sustainability keeping cell and gene therapy companies on top of the actionable intelligence that usually stimulates the RegMed universe but, in these doldrums all traders are doing is surfacing risks not already priced into the marketplace.

So, to quote Jim Morrison singing in the background - It's Over! This Is The End!

  • I got to where I am by knowing who to fear
  • Complacency and doldrums

 

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

  • The open was positive with an A/DL of 24/18 with 1 flat and 2 acquired;
  • The mid-day was negative with an A/DL of 13/29 with 1 flat and 2 acquired;
  • The close was negative with an A/DL of 10/32 and 1 flat and 2 acquired;

 

Pre-open post: “trade headline news should stimulate increased sector speculation. Time for a revival after five (5) negative sessions; the oversold are begging to be picked to be “the stock of the day”.

 

Pre-open indications: 2 HIT and 0 MISS

  • Global Blood Therapeutics (GBT) closed down -$8.33 – hit;
  • ReNeuron (RENE.L) closed down -$2.50 – hit;

 

Worst-performers (bottom 5) were:

  • Wednesday: GBT (-$8.33), SAGE (-$6.95), RENE.L (-$2.50), ALNY (-$1.65) and RGNX (-$1.56);
  • Tuesday: BMRN (-$2.08), BLFS (-$1.16), ONCE (-$1.12), GBT (-$0.86) and RARE (-$0.72);
  • Monday: QURE (-$7.58), SAGE (-$5.82), ONCE (-$3.16), RGNX (-$3.06) and BOLD (-$3.02);

Posting gains (top 5) were:

  • Wednesday:  ONCE (+$1.52), VCEL (+$0.78), BLFS (+$0.65), XON (+$0.250 and RARE (+$0.25);
  • Tuesday: BLUE (+$1.93), SAGE (+$1.37), EDIT (+$1.04), FATE (+$0.68) and NTLA (+$0.67);
  • Monday: MESO (+$0.34), GBT (+$0.29), KOOL (+$0.04), CLBS (+$0.03) and ONVO (+$0.01);

 

Upside volume stats:  to compare

  • Wednesday: 4 out of the 10 upside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 20 upside had higher than the 3 month average volume;
  • Monday: 2 out of the 7 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 6 out of the 32 downside had higher than the 3 month average volume
  • Tuesday: 7 out of the 21 downside had higher than the 3 month average volume
  • Monday: 8 out of the 35 downside had higher than the 3 month average volume

 

The week’s percentage (%) indicators: 

  • Wednesday’s range of the 10 upside was +0.42% (RARE) to +5.34% (PSTI +$0.03) while the 32` downside ranged from -0.14% (CRSP) to -13.34% (GBT);
  • Tuesday’s range of the 20 upside was +0.05% (BOLD) to +11.78% (MESO) while the 21` downside ranged from -0.15% (AXGN) to -9.63% (CUR -$0.03);
  • 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);

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:

  • Wednesday closed down -1%
  • Tuesday closed down -0.21%
  • Monday closed down -2.13%

 

June’s sessions:

Wednesday closed NEGATIVE with 32 decliners, 10 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 21 decliners, 20 advancers, 2 flats and 2 acquired (AST & OSIR);

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.