Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: another high after a dive

August 21, 2019 8:14pm

Love those algorithms “ruling” the machines, today

Traders trade while investors stay stationary waiting for the volatility to subside

Interesting metric: 0 out of the 24 upside had higher than the 3 month average volume and 5 out of the 18 downside had higher than the 3 month average volume;

The sector and overall stock market tends to consistently rise and fall over the short-term with alternating volatility and involuntary momentum contractions

If the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).

Markets and indexes:

The Dow closed up 240.29 points or +0.93% to 26,202.73;
The S&P closed up +23.92 points or +0.82% at 2,924.43;
The NASDAQ was up +71.65 or +0.90% to 8,020.21;

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

Wednesday the IBB closed up +0.91% while the XBI also closed up +0.96 %
Tuesday the IBB closed N/A while the XBI also closed N/A (my miss)
Monday the IBB closed up +1.13% while the XBI also closed up +1.13%

Henry’omics:

The major indexes held on to their gains even after the bond market flashed a recession signal in the last hour of trading.

The better-than-expected results come at a time when traders are worried about a possible U.S. economic slowdown. Those fears have led investors away from riskier assets like … equities!

The Dow is down more than 2% in August amid worries over a possible recession. The S&P 500 and NASDAQ have both lost more than 1.5% this month.

Investors on Wednesday digested minutes from the Federal Reserve's meeting. The minutes showed the Fed has no "pre-set course" for cutting rates. The Fed cut rates by 25 basis points in July, while signaling that it was only a "mid-cycle adjustment" and the central bank was not returning to the stimulus era <CNBC>.

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

Say less, mean more ...

Pre-open post, “when you point one finger on the BUY or SELL button, there are three fingers pointing back at you! Don’t question your logic as to your continued complacency - liquidity remains a cause for concern.”

The advance/decline line scenario of 45 covered companies:

Wednesday the close was positive with an A/D Line of 24/18 and 1 flat and 2 acquired;
Tuesday the close was negative with an A/D Line of 11/32 and 0 flat and 2 acquired;
Monday the close was positive with an A/D Line of 36/6 and x flat and 2 acquired;

Decliners:

bluebird bio (BLUE -$3.24);
Stemline Therapeutics (STML -$1.30);
Intrexon (XON -$0.35);
Solid Biosciences (SLDB -$0.24);
Audentes Therapeutics (BOLD -$0.15);

Incliners:

ReNeuron RENE.L +$12.50 after Tuesday’s -$4.00, Monday’s +$1.50, Friday’s +$4.00, Thursday’s -$10.50 and last Wednesday’s+$1.50;
Sage Therapeutics (SAGE +$3.16 after Tuesday’s +$0.33 and Monday’s +$2.35);
BioMarin Pharmaceuticals (BMRN +$1.71);
Alnylam Pharmaceuticals (ALNY +$1.23);
Ionis Pharmaceuticals (IONS +$1.17 after Tuesday’s +$0.98);

The percentage (%) indicators:

Wednesday’s range of the 24 upside was +0.16% (QURE) to +7.75% (VSTM) while the 18 downside ranged from -0.05% (BLCM) to -8.66% (STML);
Tuesday’s range of the 11 upside was +0.20% (SAGE) to +11.39% (HSGX) while the 32 downside ranged from -0.07% (ALNY to -10.22% (ADVM);
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);

Upside volume stats: to compare

Wednesday: 0 out of the 24 upside had higher than the 3 month average volume;
Tuesday: 5 out of the 11 upside had higher than the 3 month average volume;
Monday: 3 out of the 36 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

Wednesday: 5 out of the 18 downside had higher than the 3 month average volume;
Tuesday: 4 out of the 32 downside had higher than the 3 month average volume;
Monday: 2 out of the 6 downside had higher than the 3 month average volume;

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

August’s sessions:

Wednesday closed POSITIVE with 18 decliners, 24 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 32 decliners, 11 advancers, 0 flat and 2 acquired (AST & OSIR);

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.