August 12, 2019 5:10pm

My continuous question, “where and what are the BUY catalysts, just being oversold is for trader’s play not investor inter-action.”

Monday the close was negative with an A/D Line of 13/29 and 1 flat and 2 acquired; volume and percentage (%) movers were low

As I also stated, “be ready for some of the upside to be depreciated by profit taking and many answered the call - again.”

How many times can I be right … there are opportunities here?

 

The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish August and quarter’s (Q2) reporting initiating tumultuous devaluation.

 

Markets and indexes:

  • The Dow closed down -391 points or -1.49% to 25,896.44;
  • The S&P closed down -35.95 points or -1.23% at 2,882.70;
  • The NASDAQ was down -95.73 or -1.20% to 7,863.41;

 

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

  • Monday the IBB closed down -1.25 % while the XBI closed down -1.88%
  • Friday the IBB closed down -0.38% while the XBI closed down -0.91%

 

Henry’omics:

Sector equities and broad based stocks fell on Monday as bond yields resumed their August spiral lower, raising concerns about the state of the economy.

It was the 2nd down day (after Friday) for the market, which had staged a remarkable recovery last week until the selling returned with four (4) out of six (6) sessions in the “hole” including last week.

Also hurting stocks were the intensified Hong Kong protests, which soured investor sentiment already aggravated by the trade dispute between Washington and Beijing. Hong Kong International Airport cancelled all departures for the remainder of the day, citing serious disruptions due to intensifying protests <CNBC>.

 

I'd be picking and discarding the "weeds" ... and BUYING some of those who have reported, de-valued and should experience some upside ... remember the CEO is your buttton to BUY in the future, if you are NOT satisfied with their performance - weed it!

 

Pre-open post, “we’re looking at another Dow n session due to Hong Kong protests rising among other things such as sentiment and 10 others. 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.”

As I had said on Friday, “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; your portfolio should change along with them. From a positive view, pick-up stocks might be an alternative “game” for traders – some are ripe!”

 

The advance/decline line scenario of 45 covered companies:  

  • Monday the close was negative with an A/D Line of 13/29 and 1 flat and 2 acquired;
  • Friday the close was negative with an A/D Line of 11/30 and 2 flats and 2 acquired;

 

Decliners:

  • bluebird bio (BLUE -$6.58 after Friday’s +$0.88 and Thursday’s +$3.57);
  • Sage Therapeutics (SAGE -$4.25 after Friday’s -$3.19, Thursday’s +$4.21, Wednesday’s +$5.93, Tuesday’s +$5.70 and last Monday’s -$4.12);
  • Spark Therapeutics (ONCE -$3.58);
  • BioMarin Pharmaceuticals (BMRN -$3.40);
  • Alnylam Pharmaceuticals (ALNY -$1.90 after Friday’s -$2.10 and Thursday’s +$2.47);

Incliners:

  • ReNeuron RENE.L +$11.00);
  • AxoGen (AXGN +$1.23 after Friday’s +$0.26);
  • Ultragenyx (RARE +$0.50);
  • BioLife Solutions (BLFS +$o,31 after Friday’s -$1.55);
  • Stem line Therapeutics (STML +$0.26 following an offering);

 

The percentage (%) indicators: 

  • Monday’s range of the 13 upside was +0.12% (GBT) to +19.19% (AXGN) while the 29 downside ranged from -0.56% (IONS) to -8.82% (PSTI);
  • 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);

 

Upside volume stats:  to compare

  • Monday: 7 out of the 13 upside had higher than the 3 month average volume;
  • Friday: 3 out of the 11 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Monday: 7 out of the 29 downside had higher than the 3 month average volume;
  • Friday: 11 out of the 30 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

Monday closed NEGATIVE with 29 decliners, 13 advancers, 1 flat and 2 acquired (AST & OSIR);

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.