July 15, 2019 6:26pm

The sector’ upside flip as the NASDAQ slips from Friday’s swing with a new all-time high

Caution pervades as earning’s season begins to ramp-up, maintain a wait-and-see attitude

Insight from what's a volatile climate; RMi outlines the preludes of a new week defining the mitigating factors of share pricing!

 

CEOs should be re-thinking a motto: “Duty, Honor and Shareholders” – many have forgotten who they really work for!

 

Markets and indexes:

  • The Dow closed up +27.13 points or +0.10% to 27,359.16
  • The S&P closed up +0.53 points or +0.02% at 3,014.30
  • The NASDAQ was up +14.04 or +0.17% to 8258.18 after Friday’s +48.10 points or +0.59% to 8,244.14

 

Henry’omics:

Sector equities eked out a positive close after a nauseous morning session.

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

  • The open was negative with an A/DL of 17/22 with 4 flats and 2 acquired;
  • The mid-day turned positive with an A/DL of 25/14 with 4 flats and 2 acquired;
  • The close was positive with an A/DL of 26/15 and 2 flats and 2 acquired

Monday’s moves come after the major indexes had a record-setting week. The Dow closed above 27,000 for the first time last week while the S&P 500 broke above 3,000 as the NASDAQ also reached record levels.

A “Risk-On’ outlook seems to be the most likely outcome between now and August when the possibility of a market top grows stronger.

  • Risk-on risk-off is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. Risk-on risk-off refers to changes in investment activity in response to global economic patterns.
  • During periods when risk is perceived as low, the risk-on risk-off theory states that investors tend to engage in higher-risk investments. When risk is perceived to be high, investors have the tendency to gravitate toward lower-risk investments. <Investopedia>

 

Leading decliners were:

  • Sage Therapeutics (SAGE -$2.55);
  • AxoGen (AXGN -$0.945);
  • BioLife Solutions (BLFS -$0.74);
  • uniQure (QURE -$0.67);
  • Stemline Therapeutics (STML -$0.60);

Friday’s stragglers: a comparison …

  • ReNeuron (RENE.L -$5.00);
  • Alnylam Pharmaceuticals (ALNY -$1.87),
  • bluebird bio (BLUE -$1.33 after Thursday’s +$0.78);
  • Stemline Therapeutics (STML -$0.80);

 

Monday’s incliners:

  • bluebird bio (BLUE +$3.10);
  • Ions Pharmaceuticals (IONS +$2.34);
  • Audentes Therapeutics (BOLD +$1.79);
  • Alnylam Pharmaceuticals (ALNY +$1.25)
  • BioMarin Pharmaceuticals (BMRN +$1.04)

Friday’s upsiders: a comparison

  • uniQure (QURE +$1.67);
  • Regenxbio (RGNX +$1.52);
  • Fate Therapeutics (FATE +$1.09);
  • Global Blood Therapeutics (GBT +$1.03);
  • Sangamo Therapeutics (SGMO +$0.45);

 

Upside volume stats:  to compare

  • Monday: 3 out of the 26 upside had higher than the 3 month average volume;
  • Friday: 6 out of the 21 upside had higher than the 3 month average volume;

Downside volume stats: 

  • Monday: 3 out of the 15 downside had higher than the 3 month average volume;
  • Friday: 4 out of the 22 downside had higher than the 3 month average volume;

 

The percentage (%) indicators: 

  • Monday’s range of the 26 upside was +0.12% (RARE) to +11.79% (CLBS) while the 15 downside ranged from -0.05% (ONCE) to -4.88% (ATHX);
  • 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);

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

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Monday the IBB closed up +0.53% while the XBI also closed up +0.36%
  • Friday  the IBB and XBI both closed down;

 

July’s sessions and the beginning of Q3:

Monday closed POSITIVE with 15 decliners, 26 advancers, 2 flats and 2 acquired (AST & OSIR);

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.