August 16, 2019 5:57pm

As only 4 out of the 39 upside (of 45 covered) had higher than the 3 month average volume;

Pre-open indication: “I have been dipping my “toe” into some sector equities. An addendum”, another bounce down is due; I’d be watching the upsiders for being deflated.

The sector is what it is, until it isn’t and even then it doesn’t seem to be…


 

I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks

 

Markets and indexes:

  • The Dow closed up +306.62 points or +1.2% to 25,886.01;
  • The S&P closed +41.08 points or +1.4% at 2,888.68;
  • The NASDAQ was up +129.38 or +1.67% to 7,895.99;

 

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

Friday the IBB closed up +2.23% while the XBI closed up +2.65%

  • Thursday the IBB closed down -0.34% while the XBI closed down -1.19%
  • Wednesday the IBB closed down -2.23% while the XBI closed down -2.82%
  • Tuesday the IBB closed up +1.22% while the XBI closed up +1.38%
  • Monday the IBB closed down -1.25 % while the XBI closed down -1.88%

 

Henry’omics:

The sector and markets rallied on Friday as a rebound in bond yields eased fears of a recession that sent stocks tumbling earlier in the week.

Bond yields also … climbed back from their historic lows on Friday. The U.S. 30-year Treasury yield dropped to a record low on Thursday, while the yield on the benchmark 10-year notes dipped to a three-year low, as investors sought out safe-haven assets.

Important to note, The U.S. - China trade war is still a big driver of market movements. President Donald Trump this week decided to delay some of the latest China tariffs to December, a move designed to avoid any negative impact on the holiday shopping season. The president also confirmed the two sides will hold talks next month <CNBC>.

Ask yourself, do you know why you own a sector equity?

  • What are the catalysts? What's the pipeline look like?
  • Do you understand the CEO's vision and how many different “fallbacks” it has; so if one goes wrong it's not the end of the world?

 

Today’s trend is an admission that the sector is without INVESTOR pricing sustainability which suppresses a value directional

The machines and algorithms are at work -- thank you "rules" but, watch out when the same "rule" changes!

 

 

It ain’t over till it’s over ,(declines), the late, great Yogi Berra used to say, “This one (volatility) sure ain’t over”.

 

Pre-open post, “A week that was and hopefully won’t be again; reiterating, I’ve been dipping my “toe” in these markets; even as I lost money, there will be a reward. The sector’s Advance/Decline (A/D) line deepened with 28  following 33 of my “covered” 45 being down after Monday (29 decliners) and last Friday’s (30 decliners) negative closes.”

 

The advance/decline line scenario of 45 covered companies:  

  • Friday the close was positive with an A/D Line of 39/3 and 1 flat and 2 acquired;
  • Thursday the close was negative with an A/D Line of 15/28 and 0 flat and 2 acquired;
  • Wednesday the close was negative with an A/D Line of 9/33 and 1 flat and 2 acquired;
  • Tuesday the close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;
  • Monday the close was negative with an A/D Line of 13/29 and 1 flat and 2 acquired;

 

Decliners:

  • BioTime (NYSEMKT: BTX -$0.07);
  • Brainstorm cell Therapy (BCLI -$0.03);
  • Caladrius Biosciences (CLBS -$0.03);

Incliners:

  • ReNeuron RENE.L +$4.00 after Thursday’s -$10.50, Wednesday’s+$1.50, Tuesday’s-$9.00 and Monday’s +$11.00);
  • BioMarin Pharmaceuticals (BMRN +$3.63);
  • bluebird bio (BLUE +$2.46 after Thursday’s +$1.26 and Wednesday’s -$3.09);
  • Alnylam Pharmaceuticals (ALNY +$2.24);
  • Solid Biosciences (SLDB +$1.92);

 

The percentage (%) indicators: 

  • Friday’s range of the 39 upside was +0.43% (BSTG) to +31.22% (SLDB) while the 3 downside ranged from -0.84% (BCLI) to -7.08% (BTX);
  • Thursday’s range of the 15 upside was +0.03% (BMRN) to +6.63% (BLFS) while the 28 downside ranged from -0.27% BCLI) to -13.54% (AGTC);
  • Wednesday’s range of the 9 upside was +0.06% (BOLD) to +23.79% (SLDB +$1.23) while the 33 downside ranged from -0.10% (ONCE) to -7.57% (CLLS);
  • Tuesday’s range of the 22 upside was +0.14% (BLUE) to +8.70% (KOOL +$0.24) while the 20 downside ranged from -0.08% (CLLS) to -11.02% (SLDB);
  • 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);

 

Upside volume stats:  to compare

  • Friday: 4 out of the 39 upside had higher than the 3 month average volume;
  • Thursday: 3 out of the 15 upside had higher than the 3 month average volume;
  • Wednesday: 3 out of the 9 upside had higher than the 3 month average volume;
  • Tuesday: 5 out of the 22 upside had higher than the 3 month average volume;
  • Monday: 7 out of the 13 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Friday: 2 out of the 3 downside had higher than the 3 month average volume;
  • Thursday: 8 out of the 28 downside had higher than the 3 month average volume;
  • Wednesday: 9 out of the 33 downside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 20 downside had higher than the 3 month average volume;
  • Monday: 7 out of the 29 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

Friday closed POSITIVE with 3 decliners, 39 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 28 decliners, 14 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 20 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR);

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.