August 19, 2019 7:34pm

We saw the upside pricing stabilization but, I want to see sustainability before the “machines” start eating our universes’ gains

Don’t be misled by the big up days after an equal number of down sessions in August

Volatility is still expletive driven … that is why I said SELL

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 +249.78 points or +0.96% to 26,135.79;
  • The S&P closed +34.97 points or +1.21% at 2,923.65;
  • The NASDAQ was up +106.82 or +1.35% to 8,002.81;

 

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

  • Monday the IBB closed up +1.13% while the XBI also closed up +1.13%
  • Friday the IBB closed up +2.23% while the XBI closed up +2.65%

 

Henry’omics:

Stocks rose sharply on Monday as treasury yields rebounded, quelling fears of a possible recession. Equities also got a boost after the U.S. agreed to extend a temporary reprieve to Chinese telecom giant Huawei.

These gains add to a rebound that started last week after the Dow posted its worst session of 2019. The 30-stock index plummeted 800 points, or 3.1% on Wednesday before regaining some of the lost ground on Thursday and Friday. The S&P 500 is still down 1.9% in August and off more than 3% from a recent record <CNBC>.

I sold at sessions end – maybe I was right but, I protected my cash position speculating that sustainability is NOT expected!

 

Pre-open post, “futures are jumping; it was volatile last week; who says it’s about to change? Warning “shots” have been fired; proceed cautiously; don’t get sucked-in!”

 

The advance/decline line scenario of 45 covered companies:  

  • Monday the close was positive with an A/D Line of 36/6 and 1 flat and 2 acquired;
  • Friday the close was positive with an A/D Line of 39/3 and 1 flat and 2 acquired;

 

Decliners:

  • Adverum (ADVM -$0.48);
  • Stemline Therapeutics (STML -$0.16);
  • BioTime (NYSEMKT: BTX -$0.07 after Friday’s-$0.07);
  • Bellicum Pharmaceuticals (BLCM -$0.06);
  • uniQure NV (QURE -$0.05);

Incliners:

  • Sage Therapeutics (SAGE +$2.35);
  • bluebird bio (BLUE +$2.03 after Friday’s +$2.46, Thursday’s +$1.26 and Wednesday’s -$3.09);
  • Alnylam Pharmaceuticals (ALNY +$1.51 after Friday’s +$2.24);
  • ReNeuron RENE.L +$1.50 after Friday’s +$4.00, Thursday’s -$10.50, Wednesday’s+$1.50, Tuesday’s-$9.00 and last Monday’s +$11.00);
  • CRISPER Therapeutics (CRSP +$1.03)

 

The percentage (%) indicators: 

  • Monday’s range of the 36 upside was +0.10% (GBT) to +13.54% (PSTI) while the 6 downside ranged from -0.09% (QURE) to -7.08% (BTX);
  • 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);

 

Upside volume stats:  to compare

  • Monday: 3 out of the 36 upside had higher than the 3 month average volume;
  • Friday: 4 out of the 39 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Monday: 2 out of the 6 downside had higher than the 3 month average volume;
  • Friday: 2 out of the 3 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

Monday closed POSITIVE with 6 decliners, 36 advancers, 1 flat and 2 acquired (AST & OSIR);

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.