August 25, 2019 10:52am
Low volume sets the range of pricing volatility as daily turnover is weak
A lack of liquidity causes wild volatility
I focus on indication analysis; an indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation. The sole provision is that it provides insight to provide some vision into a likely course of action.
The take-away, don’t dwell on what’s happened - it will reverse as macro conditions revererate and markets react to the oversold conditions ...follow RMi’s lesson of investing in those who guide and then meet short-term expectation
What I didn’t get to publish for a rash of circumstances on Friday a.m. …
From Thursday’s evening post, “short-term fear has battered the cell and gene therapy sector. 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 NASDAQ was down -20.08 or -0.25% to 8,000.13;
• The IBB closed down -0.82% while the XBI also closed down -1.97%;
• The close was negative with an A/D Line of 9/33 and 1 flat and 2 acquired;
• The 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);
• 3 out of the 9 upside had higher than the 3 month average volume;
• 4 out of the 33 downside had higher than the 3 month average volume;
Companies in my headlights – It’s your decision; I provide an idea and context:
*** Watch out for new BOTTOMS to be formed***
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.