August 5, 2019 8:15pm
How many must we live through as volume stagnates
The Cboe Volatility Index (VIX), widely considered to be the best fear gauge in the market, jumped 36% to above 23
Pre-open indications: 1 HIT and 0 MISS
Are the estimates so hard to fathom in “our” universe’s journey through the Q2/19’s reporting cycle!
During “earning’s” season, traders vote by buying and selling shares, and in the short run, the trades happen at the levels dictated by whether the buyers or sellers are motivated by meeting “street” expectation versus LPS (loss-per-share) as compared to net income.
Markets and indexes:
- The Dow closed down -767.27 points or -2.90% to 25,717.74;
- The S&P closed down -87.31 points or -2.98% at 2,932.05;
- The NASDAQ was down -278.03 or -3.74% to 7,726.04;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday the IBB closed down -2.65% while the XBI closed down-3.25%
- Friday the IBB closed down -1.2% while the XBI closed down -2.20%
A whole new week evolves with a downward trend – just what we didn’t need but, was expected as earning results are raging.
Markets fell sharply Monday as a trade war between the world’s largest economies intensified with China retaliating against President Donald Trump’s latest move.
It was the worst percentage drop for all three indexes this year. The S&P 500 is now more than 6% below its record hit only last month.
After Friday’s (8/2) sell-off renewed trade fears, capped a week where the benchmark S&P 500 index and the NASDAQ saw their worst weekly percentage plunges since December, when investors were spooked by the prospect of a looming recession.
Pre-open post, “global market selloff as Chinese weakens their currency as futures also pointed to opening declines for the NASDAQ.”
When one doesn't have any expectaion, aniticipated is negated and the some!
Monday’s advance/decline line scenario of 45 covered companies:
- The close was negative with an A/D Line of 2/41 and 0 flat and 2 acquired;
Pre-open indications: 1 HIT and 0 MISS
- ReNeuron (RENE.L ) closed down -$18.00 – hit;
- ReNeuron (RENE.L -$18.00 after Friday’s +$5.00);
- CRISPER Therapeutics (CRSP -$4.89 after Friday’s -$2.67 and Thursday’s +$1.87);
- Sage Therapeutics (SAGE -$4.12);
- uniQure (QURE -$3.31);
- bluebird bio (BLUE -$3.16 after Friday’s -$7.87, Thursday’s -$3.08, Wednesday’s -$1.81, Tuesday’s -$3.78 and last Monday’s -$2.92;
- Cesca Therapeutics (KOOL +$0.03)
- Adverum (ADVM +$0.07);
The percentage (%) indicators:
- Monday’s range of the 2 upside was +0.63% (ADVM) to +1.02% (KOOL +$0.03) while the 41 downside ranged from -0.21% (ONCE) to -9.80% (CRSP);
- Friday’s range of the 8 upside was +0.57% (MDXG) to +14.04% (STML) while the 34 downside ranged from -0.95% (BTX) to -12.61% (ADVM);
Upside volume stats: to compare
- Monday: 1 out of the 2 upside had higher than the 3 month average volume;
- Friday: 3 out of the 8 upside had higher than the 3 month average volume;
Downside volume stats: NOTICE
- Monday: 18 out of the 41 downside had higher than the 3 month average volume;
- Friday: 9 out of the 34 downside had higher than the 3 month average volume;
0 flat with 2 acquired (AST & OSIR) with the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed (SEPTEMBER?)
Monday closed NEGATIVE with 41 decliners, 2 advancers, 0 flat and 2 acquired (AST & OSIR);
Friday closed NEGATIVE with 34 decliners, 8 advancers, 1 flat and 2 acquired (AST & OSIR);
Thursday closed POSITIVE with 19 decliners, 22 advancers, 2 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.