July 25, 2019 7:31pm

Investors need to think about a buying or selling pace, momentum and anticipate encountering resistance; also consider covering positions

News: Verastem Oncology (VSTM) signs an exclusive license agreement to develop and commercialize with Sanofi for COPIKTRA® (duvelisib) in Russia and CIS, Turkey, the Middle East and Africa. VSTM to will receive an upfront payment of $5 M; then eligible to receive up to $42 M in milestones and double-digit percentage royalties.

Pre-open indications: 5 HITs and 3 MISS

 

I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks.

 

 

The RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell.  These same buyers/sellers can also be very fickle as their purchasing habits are often based on emotion, not sound investment strategies.

 

Markets and indexes:

  • The Dow closed down -128.99 points or -0.47% to 27,140.98;
  • The S&P closed down -15.89 points or -0.53% at 3,003.67;
  • The NASDAQ was down -82.96 or -1% to 8,238.54;

 

Henry’omics:

The sector took it in the shorts today, Thursday; it’s a trading environment and the “machines” sold out “our” universe.

U.S. stocks backed off record highs and government bond yields ticked up on Thursday following mixed earnings reports and rosier-than-expected economic sentiment from the European Central Bank.

  • The ECB signaled its intention to explore monetary easing but left interest rates unchanged, and bank President Mario Draghi struck a more upbeat tone on the economy than investors expected, sending U.S. and European equities lower and boosting sovereign debt yields. <Reuters>.

What’s hurting the earning’s season – fear which could also include a … downside knell for my covered companies – “underwhelming guidance” to the future!

 

Pre-open post, “sit, seek sanctuary or lock-in a de-risked position pre-earnings release? As tech stocks come under a microscope after the Justice Department announced a broad antitrust review.” Such is a session …!

 

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

  • The open was negative with an A/D (A/D) line of 13/27 with 3 flat3 and 2 acquired;
  • The mid-day was negative with an A/D Line of 9/33 with 1 flat and 2 acquired;
  • The close was negative with an A/D Line of 11/32 and 0 flat and 2 acquired;

 

Pre-open indications: 5 HITs and 3 MISS

  • Ions Pharmaceuticals (IONS) closed up +$0.04 – hit;
  • uniQure (QURE) closed down -$0.69 – miss;
  • Sage Therapeutics (SAGE) closed down -$13.57 – miss;
  • BioLife Solutions (BLFS) closed down -$0.31 – hit;
  • bluebird bio (BLUE) closed down -$3.71 – hit;
  • Editas Medicine (EDIT) closed down -$1.08 – hit;
  • CRISPR Therapeutics (CRSP) closed up +$0.52 – miss;
  • Intellia Therapeutics (NTLA) closed down -$0.55 – hit;

 

The percentage (%) indicators: 

  • Thursday’s range of the 11 upside was +0.03% (ONCE) to +6.42% (BSTG +$0.14) while the 32 downside ranged from -0.25% (HSGX) to -25.60% (CUR -$1.28 – an offering proposed);
  • Wednesday’s range of the 27 upside was +0.06% (CRSP) to +9.89% (CUR +$0.45 after reverse) while the 14 downside ranged from -0.55% (ALNY) to -25.07% (PSTI);
  • Tuesday’s range of the 19 upside was +0.05% (VCEL) to +4.15% (XON) while the 23 downside ranged from -0.30% (HSGX) to -8.12% (KOOL);
  • Monday’s range of the 24 upside was +0.04% (BMRN) to +7.36% (BLFS) while the 17 downside ranged from -0.10% (HSGX) to -6.34% (ADRO);

 

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

  • Thursday the IBB closed down -1.40% while the XBI closed down -2.27%
  • Wednesday the IBB closed up +0.28% while the XBI closed up +0.90%
  • Tuesday the IBB closed UP +0.26% while the XBI closed down -0.68%
  • Monday the IBB closed UP +0.23% while the XBI closed UP +0.34%

 

Leading decliners were:

  • Sage Therapeutics (SAGE -$13.27 after Wednesday’s -$5.46, Tuesday’s -$1.04 and Monday’s -$1.39);
  • ReNeuron (RENE.L -$5.00);
  • Homology Medicine (FIXX -$4.48)
  • bluebird bio (BLUE -$3.71 after Wednesday’s +$3.40, Tuesday’s +$0.48, Monday’s +$1.74 and last Friday’s -$3.13);
  • Regenxbio (RGNX -$2.51 after Wednesday’s +$1.55, Tuesday’s -$1.53 and Monday’s +$1.46);

Tuesday’s incliners:

  • CRISPR Therapeutics (+$0.52);
  • AxoGen (AXGN (+$0.45 after Wednesday’s -$1.34);
  • Pluristem (+$0.27 to $4.53) after a one-for-ten reverse split;
  • Mesoblast (MESO +$0.23);
  • MiMedx (MDXG+$0.140

 

Upside volume stats:  to compare

  • Thursday: 1 out of the 11 upside had higher than the 3 month average volume;
  • Wednesday: 9 out of the 27 upside had higher than the 3 month average volume;
  • Tuesday: 2 out of the 19 upside had higher than the 3 month average volume;
  • Monday: 4 out of the 24 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Thursday: 7 out of the 32 downside had higher than the 3 month average volume;
  • Wednesday: 3 out of the 14 downside had higher than the 3 month average volume;
  • Tuesday: 8 out of the 24 downside had higher than the 3 month average volume;
  • Monday: 2 out of the 17 downside had higher than the 3 month average volume;

 

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

 

July’s sessions and the beginning of Q3:

Thursday closed NEGATIVE with 32 decliners, 11 advancers, 0 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 27 decliners, 14 advancers, 2 flats and 2 acquired (AST & OSIR);

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

Monday closed POSITIVE with 17 decliners, 24advancers, 2 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 14 decliners, 27 advancers, 2 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 20 decliners, 23 advancers, 0 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 27 decliners, 15 advancers, 1 flat and 2 acquired (AST & OSIR);

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.