July 1, 2019 7:42pm
Investor’s lack clarity on whether risk reduction is an actual practice and that's being nice!
Volatility remains, volume continues to the low side with sentiment equated to complacency
I know what a company is supposed to look like, be like, and “smell” like to succeed!
As the leading voice of cell and gene therapy investors; I am not always a doom and gloom analyst/journalist but a man who has been “there” with the gray hair and a readership following with real numbers to prove it!
Markets and indexes:
- The Dow closed up +117.47 points or +0.44% to 26,717.43
- The S&P closed up +22.57 points or +0.77% at 2,964.33
- The NASDAQ was up +84.92 points or +1.06% to 8,091.16
The sector took a dump while markets rose after the U.S. and China agreed to hold off on slapping additional tariffs on their products in an effort to resume trade talks.
Monday’s advance/decline line scenario of 45 covered companies:
- The open was positive with an A/DL of 22/21 with 0 flat and 2 acquired;
- The mid-day was negative with an A/DL of 19/24 with 0 flats and 2 acquired;
- The close was negative with an A/DL of 19/23 and 1 flat and 2 acquired
Markets appear to be content with the cooperative tone coming out of the meetings. To me, it was a contrarian “play”; end of Q2 is in play as many sector “participants” prepare to report!
The open was barely positive – a sign of a coming downfall, the mid-day slipped to the negative as the close followed to the downside – reason = low volume and waning sentiment as NO news charged the sector.
Don’t expect much from the week punctured by a holiday on Thursday where most companies are closing on Friday.
Investors anxiously awaited the meeting between Trump and Xi as they looked for clues on whether the world’s largest economies would resume trade negotiations or if the conflict would be prolonged <CNBC>.
Me, I have already escaped as I circle the birthday cake having marinated the bourbon and re vermouth with many maraschino cherries – never forgetting the crushed ice to freeze the elixir in a frozen tall stemmed glass!
I will provide a shortened version so followers can keep-up with my quantamental reporting.
Leading incliners were
- ReNeuron (RENE.L +$27.50) after Friday’s +$23.50 and last Thursday’s -$10.00 – its been taking some serious hits;
- Global Blood Therapeutics (GBT +$1.07) after Friday’s -$1.37 and Thursday’s -$0.13 - an offering subdued its rise with a big hit to take < after Wednesday’s -$8.33 after Tuesday’s -$0.86);
- Fate Therapeutics (FATE +$0.94) – it’s about time of recognition, a favorite;
- bluebird bio (BLUE +$0.91) after Friday’s +$3.30 - spreading its wings after being down it needed to rise having started last week at $117.99;
- Voyager Therapeutics (VYGR +$0.72) – I have a feeling they are headed to a decline after a low volume move, check the chart;
While the downside stragglers –
- BioMarin Pharmaceuticals (BMRN -$1.50) – questions re Q2 results (?);
- uniQure (QURE -$1.35) after Friday’s +$2.91 - having started last week at $74.61 and the fact that it could be for sale with NO immediate takers;
- Homology Medicine (FIXX -$0.83 or -4.24%) – chart shows hesitancy and a lack of “umpf”;
- Ultragenyx Pharmaceuticals (RARE - $0.67) – peaks and valleys since May – needs news;
- Alnylam Pharmaceuticals (ALNY -$0.55) – a blip, still a “solid”;
Upside volume stats: to compare
- Monday: 6 out of the 19 upside had higher than the 3 month average volume;
- Friday: 16 out of the 33 upside had higher than the 3 month average volume;
Downside volume stats:
- Monday: 6 out of the 23 downside had higher than the 3 month average volume;
- Friday: 7 out of the 9 downside had higher than the 3 month average volume;
The week’s percentage (%) indicators:
- Monday’s range of the 19 upside was +2.07% (CUR +$0.0061) to +12.73% (RENE.L) while the 23 downside ranged from -0.76% (ALNY) to -9.04% (SLDB);
- Friday’s range of the 33 upside was +0.20% (ONCE) to +19.41% (ONVO +$0.085) while the 9 downside ranged from -0.65% (IONS) to -14.57% (BLCM);
1 flat – ATHX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed
The iShares NASDAQ Biotechnology (IBB) indicator:
- Monday closed up +0.58%
- Friday closed up +1.70%
- Thursday closed up +1.38%
- Wednesday closed down -1%
- Tuesday closed down -0.21%
- Last Monday closed down -2.13%
July’s sessions and the beginning of Q3:
Monday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);
- 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.