August 27, 2019 6:47pm

The Dow, S&P and NASDAQ dived after Monday’s jive; investors need to remain cautious despite Monday’s strong performance given the low volume and breadth metric

Where are the sector’s headlines, PR/IR is thoroughly lacking; who and what can fight this flight – nada, nothing?

The sector and overall stock market consistently rises and falls with alternating volatility and involuntary momentum contractions which I call “spasms”

 

If and when the cell and gene therapy sector runs out of buyers - a minimum of two(2) to three (3) sessions a week, it runs into trouble (just like a fire that runs out of wood).

 

Markets and indexes:

  • The Dow closed down -120.93 points or -0.47% to 25,777.90;
  • The S&P closed down -9.22 points or -0.32% at 2,869.16;
  • The NASDAQ was down -26.79 or -0.34% to 7,826.95;

 

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

  • Tuesday the IBB closed down -0.91% while the XBI also closed down -1.60%
  • Monday the IBB closed up +0.73% while the XBI also closed +0.96%
  • Friday the IBB closed down -2.62% while the XBI also closed down -2.67%

 

Henry’omics:

What explains the drop – macro headlines and fear?

Tuesday’s moves follow a rally in the previous session. The Dow, S&P 500 and NASDAQ rose more than 1% on Monday.

The major indexes are all down -3.7% for the month of August.

 

Pre-open post, “want to play on the sector seesaw? Only two seats on the fulcrum, one for up and one for down; today’s theme, monitor and stay balanced.”

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was negative with an A/D Line of 8/33 and 2 flat and 2 acquired;
  • Monday the close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;
  • Friday the close was negative with an A/D Line of 7/34 and 2 flat and 2 acquired;

 

Decliners:

  • bluebird bio (BLUE -$3.00 after Monday’s -$1.53 after Friday’s -$2.98, Thursday’s -$8.62 and last Wednesday’s -$3.24);
  • Ultragenyx (RARE -$3.72 after Monday’s -$1.07, Friday’s -$1.67 and Thursday’s -$1.72);
  • Sage Therapeutics (SAGE -$2.54);
  • CRISPER Therapeutics (CRSP -$2.07);
  • Global Blood therapeutics (GBT -$1.78 after Monday’s +$1.77, Friday’s -$1.78 and Thursday’s +$0.39);

Incliners:

  • ReNeuron (RENE.L +$1.50);
  • Spark Therapeutics (ONCE+$0.37 after Monday’s -1.53);
  • Mesoblast (MESO +$0.165);
  • Bellicum Pharmaceuticals (BLCM +$0.07);
  • Verastem (VSTM +$0.06);

 

The percentage (%) indicators: 

  • Tuesday’s range of the 8 upside was +0.37% (ONCE) to +5.88% (BLCM) while the 33 downside ranged from -0.04% (ALNY) to -7.86% (ONVO);
  • Monday’s range of the 22 upside was +0.02% (QURE) to +19.98% (BLCM) while the 20 downside ranged from -0.20% (VYGR) to -7.08% (Lineage Cell Therapeutics formerly BioTime (NYSEMKT :BTX);
  • Friday’s range of the 7 upside was +0.11% (SAGE) to +3.11% (BSTG +$0.07) while the 34 downside ranged from -0.33% (ALNY) to -7.08% (BTX);

 

Upside volume stats:  to compare

  • Tuesday: 2 out of the 8 upside had higher than the 3 month average volume;
  • Monday: 4 out of the 22 upside had higher than the 3 month average volume;
  • Friday: 4 out of the 7 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Tuesday: 8 out of the 33 downside had higher than the 3 month average volume;
  • Monday: 2 out of the 20 downside had higher than the 3 month average volume;
  • Friday: 4 out of the 34 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

Tuesday closed NEGATIVE with 33 decliners, 8 advancers, 2 flat and 2 acquired (AST & OSIR);

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

Friday closed NEGATIVE with 34 decliners, 7advancers, 2 flat and 2 acquired (AST & OSIR);

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.