July 26, 2019 5:47pm

We owe today’s strength to the oversold being recognized yet sentiment is being pacified by speculation and a low volume recovery

Pre-open indications: 4 HITs and 3 MISS

Be ready for the newest “upsiders” to be considered overbought

It’s not hard to be right so often, it’s about refining expectation, defining insight and trusting your “gut” versus the machines or algorithms

 

We crave explanations because they give us an illusion of control.

 

Markets and indexes:

  • The Dow closed up +51.47 points or +0.19% to 27,192.45;
  • The S&P closed up +22.19 points or +0.74% at 3,025.86;
  • The NASDAQ was up +91.67 or +1.11% to 8,330.21;

 

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

  • Friday the IBB closed up +1.07% while the XBI closed up +1.81%
  • 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%

 

Henry’omics:

The sector recovered after taking it in the shorts on Thursday as a better-than-expected GDP print pushed the S&P 500 to a new all-time high.

Pre-open post, “closer and closer; are the Q2 earnings LPS (loss-per-share” results which will wreak havoc on share pricing. Expectation anxieties versus actualization are fostered by anticipation.”

Are we in the middle of a ... short squeeze"?

For the week, the S&P 500 climbed 1.7% and NASDAQ posted a 2.3% gain while the Dow advanced 0.1%.

The economy expanded by 2.1%; growth was driven by a 4.3% increase in consumer expenditures, which offset a 5.5% slump in business investment.

The data release comes as investors await a potential rate cut from the Fed next week. Market expectations for a 25 basis-point rate cut were at 78.6%.

 

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

  • The open was positive with an A/D (A/D) line of 26/14 with 3 flat and 2 acquired;
  • The mid-day was positive with an A/D Line of32/10 with 1 flat and 2 acquired;
  • The close was positive with an A/D Line of 32/9 and 2 flats and 2 acquired;

 

Pre-open indications: 4 HITs and 3 MISS

  • Verastem Oncology (VSTM) closed up +$0.17 – hit;
  • Ions Pharmaceuticals (IONS) closed up +$0.87 – hit;
  • uniQure (QURE -$0.69) closed down -$1.35 – miss;
  • Sage Therapeutics (SAGE) closed up +$5.17 – hit;
  • Pluristem (PSTI) closed up +$0.62 – after a 1-for-10 reverse – miss;
  • CRSPER Therapeutics (CRSP) closed up +$2.18 – miss;
  • ReNeuron (RENE.L ) closed flat at $230.00 with 75.5 shares traded - hit;

 

Leading decliners were:

  • Neuralstem (CUR -$1.38) after an offering;
  • uniQure (QURE -$1.35);
  • bluebird bio (BLUE -$0.32 after Thursday’s  -$3.71,Wednesday’s +$3.40, Tuesday’s +$0.48, Monday’s +$1.74 and last Friday’s -$3.13);
  • AxoGen (AXGN (-$0.29 after Thursday’s+$0.45 and Wednesday’s -$1.34);
  • BioLife Solutions (BLFS -$0.20);

Friday’s incliners:

  • Solid Biosciences (SLDB +$1.51) after a private placement ;
  • Pluristem (PSTI +$0.62 after Thursday’s +$0.27) after a 1-for-10 reverse split;
  • Verastem Oncology (VSTM +$0.17) after a collaboration with Sanofi;
  • Aduro Biotech (ADRO +$0.09);
  • BioTime (NYSEMKT: BTX +$0.07);

 

The percentage (%) indicators: 

  • Friday’s range of the 32 upside was +0.43% (BSTG +$0.01) to +34.87% (SLDB after a private placement) while the 9 downside ranged from -0.0006% (ONVO) to -37.10% (CUR) ;
  • 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);

 

Upside volume stats:  to compare

  • Friday: 7 out of the 32 upside had higher than the 3 month average volume;
  • 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: 

  • Friday: 4 out of the 9 downside had higher than the 3 month average volume;
  • 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;

 

2 flat – RENE.L and KOOL with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

July’s sessions and the beginning of Q3:

Friday closed POSITIVE with 9 decliners, 32 advancers, 2 flats and 2 acquired (AST & OSIR);

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.