August 6, 2019 7:18pm

The key for the week is pricing stabilization

As the sector bypasses earnings’ results, think portfolio defense …

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.

 

Are the estimates so hard to fathom in “our” universe’s journey through the Q2/19’s reporting cycle!

 

Markets and indexes:

  • The Dow closed up +311.78  points or +1.21% to 26,029.52;
  • The S&P closed up +37.03 points or +1.30% at 2,881.77;
  • The NASDAQ was up +107.22 or +1.39% to 7,833.27;

 

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

  • Tuesday the IBB closed up +1.42% while the XBI closed up +2.20%
  • 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%

 

Henry’omics:

What more can one see or say – the sector rebounded after getting its “legs” ripped out from other than universe issues – the macro issues dominate the scene!

Indexes rebounded on Tuesday from their worst day of the year after China’s central bank indicated it plans to keep its currency at a level stronger than some investors had first feared, easing tensions about the nation using the yuan as a weapon in the trade war <CNBC>.

Tuesday’s gains helped the Dow snap a five (5) day losing streak, while the S&P 500 and NASDAQ rose for the 1st time in seven (7) sessions

 

Pre-open post, “there is usually a pop after a precipitous drop. Futures recover, earnings’ results continue, the XBI (+0.49%) spins upward as the oversold shall rise from yesterday’s depths.”

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was positive with an A/D Line of 32/10 and 1 flat and 2 acquired;
  • Monday the close was negative with an A/D Line of 2/41 and 0 flat and 2 acquired;

 

Decliners:

  • ReNeuron (RENE.L -$5.00 after Monday’s -$18.00);
  • Spark Therapeutics (ONCE -$0.28);
  • uniQure (QURE -$0.27 after Monday’s -$3.31);
  • Mesoblast (MESO -$0.16);
  • Cesca Therapeutics (KOOL -$0.11 after Monday’s +$0.03)

Incliners:

  • Sage Therapeutics (SAGE +$5.70 after Monday’s -$4.12);
  • bluebird bio (BLUE +$3.93 after Monday’s -$3.16, Friday’s  -$7.87, Thursday’s -$3.08, Wednesday’s -$1.81 and last Tuesday’s -$3.78;
  • Ultragenyx (RARE +$3.84);
  • Alnylam Pharmaceuticals (ALNY +$2.97);
  • CRISPER Therapeutics (CRSP +$2.50 after Monday’s-$4.89;

 

The percentage (%) indicators: 

  • Tuesday’s range of the 32 upside was +0.20% (VYGR) to +17.40% (STML) while the 10 downside ranged from -0.01% (BMRN) to -4.62% (BLCM);
  • 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);

 

Upside volume stats:  to compare

  • Tuesday: 10 out of the 32 upside had higher than the 3 month average volume;
  • Monday: 1 out of the 2 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Tuesday: 2 out of the 10 downside had higher than the 3 month average volume;
  • Monday: 18 out of the 31 downside had higher than the 3 month average volume;

 

1 flat – AGTC with 2 acquired (AST & OSIR) with the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed (SEPTEMBER?)

 

August’s sessions:

Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

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.