August 10, 2019 8:55pm
Pre-open indications: as I had stated, be ready for some of the upside to be depreciated by profit taking and many answered the call
The real question is what are the BUY catalysts, just being oversold for trader’s play or true investor reactions?
The week so far in review, low volume pervades the downside moves
Are the estimates so hard to fathom in “our” universe’s journey through the Q2/19’s reporting cycle!
The answer is still – NO!
Markets and indexes:
- The Dow closed down -90.75 points or -0.34% to 26,287.44;
- The S&P closed down -19.44 points or -0.66% at 2,918.65;
- The NASDAQ was down -80.02 or -1% to 7,959.14;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Friday the IBB closed down -0.38% while the XBI closed down -0.91%
- Thursday the IBB closed up +1.79% while the XBI closed up +1.76%
- Wednesday the IBB closed up +0.27% while the XBI closed up +0.30%
- 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%
U.S. stocks fell on Friday following renewed jitters over the U.S.-China trade war, capping a week of trading that saw big swings and high volume.
As volatility has picked up, lower volume stays the swing; when you get moves like these and reversals, it brings a lot of high-frequency traders in and short-term traders.
President Trump said the US and China were pursuing trade talks but he was not ready to make a deal, fanning fears over the impact of the trade war on the global economy. Trump also said the US … would continue to refrain from doing business with Chinese telecoms equipment giant Huawei Technologies <Reuters>.
The week was marked by wild swings, but indexes finished nearly flat on the week. On Friday, all three indexes were down more than 1% in early trading and rebounded later in the session, with the Dow briefly turning positive at one point. This left a 315-point swing between the indexes high and low of the day.
The sector, “our” universe has taken sudden and sharp turns in multiple weeks, investors are again and again rattled … questioning their cell and gene therapy allocations.
Getting worried and second-guessing is a normal, natural, and understandable response. But if you’re feeling the urge to react and do something about it,’ I say – YES and take a deep dive on what your portfolio is holding.
Many say, don’t touch your allocation – I say just the opposites – WEED out some not all!
Goals change as do many sector equities’ horizon after the last weeks and months and your portfolio should change along with them.
The question is WHY did you BUY it in the first place and has the management team LIVED-UP to their responsibilities to keep you informed, managed the platform and ultimately guided you to stay in place with your investment?
Pre-open post, “the roller-coaster markets leave me drained; the sector follows the usual pattern after realizing an upside move … Profits taking as low volumes move the upside.”
The advance/decline line scenario of 45 covered companies:
- Friday the close was negative with an A/D line of 11/30 and 2 flats and 2 acquired;
- Thursday the close was positive with an A/D Line of 28/11 and 3 flats and 2 acquired;
- Wednesday the close was negative with an A/D Line of 19/21 and 2 flats and 2 acquired;
- 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;
- Sage Therapeutics (SAGE -$3.19 after Thursday’s +$4.21, Wednesday’s +$5.93, Tuesday’s +$5.70 and Monday’s -$4.12);
- Alnylam Pharmaceuticals (ALNY -$2.10 after Thursday’s +$2.47);
- Regenxbio (RGNX -$1.95);
- uniQure (QURE -$1.58 after Thursday’s -$0.55);
- BioLife Solutions (BLFS -$1.55);
- CRISPER Therapeutics (CRSP +$0.95);
- bluebird bio (BLUE +$0.88 after Thursday’s +$3.57);
- AxoGen (AXGN +$0.26);
- Ionis Pharmaceuticals (IONS +$0.14);
- Mesoblast (MESO +$0.12)
The percentage (%) indicators:
- Friday’s range of the 11 upside was +0.06% (FIXX) to +3.93% (ONVO) while the 11 downside ranged from -0.17% (NTLA) to -1`0.15% (BCLI);
- Thursday’s range of the 28 upside was +0.26% (BMRN) to +7.84% (MESO) while the 11 downside ranged from -0.04% (GBT) to -7.93% (ONVO);
- Wednesday’s range of the 19 upside was +0.14% (BCLI) to +8.23% (ALNY) while the 21 downside ranged from -0.22% (BLUE) to -29.24% (AXGN);
- 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
- Friday: 3 out of the 11 upside had higher than the 3 month average volume;
- Thursday: 11 out of the 28 upside had higher than the 3 month average volume;
- Wednesday: 5 out of the 19 upside had higher than the 3 month average volume;
- 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
- Friday: 11 out of the 30 downside had higher than the 3 month average volume;
- Thursday: 5 out of the 11 downside had higher than the 3 month average volume;
- Wednesday: 10 out of the 21 downside had higher than the 3 month average volume;
- 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;
2 flat – BSTG and KOOL with 2 acquired (AST & OSIR) with the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed (SEPTEMBER?)
Friday closed NEGATIVE with 30 decliners, 11 advancers, 2 flats and 2 acquired (AST & OSIR);
Thursday closed POSITIVE with 11 decliners, 28 advancers, 2 flats and 2 acquired (AST & OSIR);
Wednesday closed NEGATIVE with 21 decliners, 19 advancers, 3 flats and 2 acquired (AST & OSIR);
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.