July 12, 2019 10:02pm

Low volume, continuous volatility even after the fed juiced the markets

In July’s second week, the sector equities slipped in four (4) sessions after markets rose to all-time highs after three negative, one holiday and one positive close

The sector is what it is, until it isn’t and even then it doesn’t seem to be … when you point one finger, there are three fingers pointing back at you!

 

Liquidity (in our universe) remains a cause for concern!

 

Markets and indexes:

  • The Dow closed up +243.95 points or +0.90% to 27,332.03
  • The S&P closed up +13.86 points or +0.46% at 3,013.77
  • The NASDAQ was up +48.10 points or +0.59% to 8,244.14

 

Henry’omics:

The major indexes passed multiple milestones and posted solid gains this week amid testimony from the top Fed official signaling that a rate cut was coming.

 The Dow closed above 27,000 for the first time on Thursday and Friday’s gain brought its increase on the week to 1.5%.  The S&P 500 rose 0.8% and the NASDAQ ended the week up 1% <CNBC>.

Friday’s decline stifled Thursday’s upside - confidence perceived is not always value achieved!  

As I had stated, “Friday is an unknown yet, the trend is usually NOT our friend – let’s hope; Q2 results are being prepared with Sage Therapeutics (SAGE) reporting on 8/7 ahead of Athersys (ATHX) on 8/7.”

 

Until the end of the month, the sector will shift its focus to LPS (loss-per-share) earnings …

 

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

  • The open was positive with an A/DL of 23/20 with 0 flat and 2 acquired;
  • The close was negative with an A/DL of 21/22 and 0 flats and 2 acquired

 

The week in review; the sector dived again on Friday following Thursday’s decline after jumping on Wednesday (after plunging Tuesday and Monday) led by ReNeuron’s (RENE.L (-$5.00 after Thursday’s -$32.50) downside with an upside led by uniQure (QURE +$1.67.

 

Leading incliner stand-outs were:

  • uniQure (QURE +$1.67 after Thursday’s -$1.61 after Wednesday’s -$2.89, Tuesday’s -$1.77 and Monday’s -$1.73);
  • Regenxbio (RGNX +$1.52);
  • Fate Therapeutics (FATE +$1.09);
  • Global Blood Therapeutics (GBT +$1.03);
  • Sangamo Therapeutics (SGMO +$0.45);

While the downside stragglers –

  • ReNeuron (RENE.L -$5.00 after Thursday’s -$32.00 after Wednesday’s +$20.00, Tuesday’s +$10.00 and Monday’s +$10.00);
  • Alnylam Pharmaceuticals (ALNY -$1.87),
  • bluebird bio (BLUE -$1.33 after Thursday’s +$0.78);
  • Stemline therapeutics (STML -$0.80);

 

Upside volume stats:  to compare

  • Friday: 6 out of the 21 upside had higher than the 3 month average volume;
  • Thursday: 3 out of the 14 upside had higher than the 3 month average volume;
  • Wednesday: 4 out of the 25 upside had higher than the 3 month average volume;
  • Tuesday: 7 out of the 13 upside had higher than the 3 month average volume;
  • Monday: 8 out of the 18 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Friday: 4 out of the 22 downside had higher than the 3 month average volume;
  • Thursday: 5 out of the 26 downside had higher than the 3 month average volume;
  • Wednesday: 4 out of the 16 downside had higher than the 3 month average volume;
  • Tuesday: 0 out of the 29 downside had higher than the 3 month average volume;
  • Monday: 7 out of the 24 downside had higher than the 3 month average volume;

 

The percentage (%) indicators: 

  • Friday’s range of the 21 upside was +0.11% (IONS) to +8.37% (BSTG) while the 22 downside ranged from -0.03% (BOLD) to -10.95% (MESO);
  • Thursday’s range of the 14 upside was +0.11% (RGNX) to +12.81% (ONVO) while the 26 downside ranged from -0.05% (GBT) to -11.82% (RENE.L);
  • Wednesday’s range of the 25 upside was +0.05% (AXGN) to +7.84% (RENE.L) while the 16 downside ranged from -0.56% (BLCM) to -6.14% (ONVO);
  • Tuesday’s range of the 13 upside was +0.28% (BLCM) to +11.10% (ADVM) while the 29 downside ranged from -0.17% (BLUE) to -5.71% (VSTM);
  • Monday’s range of the 18 upside was +0.06% (BLUE) to +22.53% (ADVM) while the 24 downside ranged from -0.10% (AXGN) to -5.29% (RARE);

 

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

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Friday: closed down -1.36%;
  • Thursday: closed down -1.47%;
  • Wednesday: closed down -0.28%;
  • Tuesday: closed up +1.02%;
  • Monday: closed down -1.36%;

 

July’s sessions and the beginning of Q3:

Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 26 decliners, 14 advancers, 3 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 25 decliners, 16 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 29 decliners, 13 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 24 decliners, 18 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday was a holiday;

Wednesday closed POSITIVE with 10 decliners, 31 advancers, 2 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 30 decliners, 11 advancers, 2 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 23 decliners, 19 advancers, 1 flat and 2 acquired (AST & OSIR);

 

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.