Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: short-term fear has battered the cell and gene therapy sector

August 22, 2019 6:46pm

The NASDAQ is also down more than -2% this month

Where is the news to react to other than volatility and macro risk as investors remain on edge over the China trade conflict along with Fed’s monetary policy?

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 +66.23 points or +0.25% to 26,268.96;
The S&P closed up +0.70 points or +0.02% at 2,925.13;
The NASDAQ was down -20.08 or -0.25% to 8,000.13;

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

Thursday the IBB closed down -0.82% while the XBI also closed down -1.97%

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:

Fed Chairman Powell is set to deliver a speech Friday at a yearly central banking symposium in Jackson Hole, Wyoming.

The stakes are high for Powell as investors will look for hints that the Fed will cut rates in September.

Market expectations for a September rate cut are at 93.5%, according to the CME Group’s FedWatch tool. The Fed cut rates by 25 basis points in July, citing “global developments” and “muted inflation”<CNBC>.

The title says it all …

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

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:

Thursday the close was negative with an A/D Line of 9/33 and 1 flat and 2 acquired;
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 -$8.62 after Wednesday’s -$3.24);
Ionis Pharmaceuticals (IONS -$4.30 after Wednesday’s +$1.17 and Tuesday’s +$0.98);
Regenxbio (RGNX -$1.73);
Ultragenyx (RARE -$1.72);
Audentes Therapeutics (BOLD -$1.44 after Wednesday’s -$0.15);

Incliners:

Sage Therapeutics (SAGE +$1.27 after Wednesday’s +$3.16, Tuesday’s +$0.33 and Monday’s +$2.35);
Homology Medicines (FIXX +$0.77);
Global Blood therapeutics (GBT +$0.39);
AxoGen (AXGN +$0.12);
Biostage (BSTG +$0.07);

The percentage (%) indicators:

Thursday’s range of the 9 upside was +0.67% (AGTC) to +4.29% (FIXX) while the 33 downside ranged from -0.02% (ONCE) to -8.14% (XON);
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

Thursday: 3 out of the 9 upside had higher than the 3 month average volume;
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

Thursday: 4 out of the 33 downside had higher than the 3 month average volume;
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 – RENE.L with 2 acquired (AST & OSIR) with the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed (SEPTEMBER?)

August’s sessions:

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

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

What's Happening Today

2 hours 43 min ago
RegMed Investors’ (RMi) pre-open: finding our way

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.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

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.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

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.