August 29, 2019 7:35pm

Low volume is still a standard

Value could be stripped as no one contemplates quiet headlines headed to a long holiday weekend

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


 

As 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 +326.15 points or +1.26% to 26,362.25;
  • The S&P closed up +36.64 points or +1.27% at 2,924.58;
  • The NASDAQ was up +116.51 or +1.48% to 7,973.39;

 

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

  • Thursday the IBB closed up +0.72% while the XBI also closed up +1.31%
  • Wednesday the IBB closed up +0.65% while the XBI also closed up +1.44%
  • 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%

 

Henry’omics:

Sector equities jumped on Thursday following along with the indexes after China said it wished to resolve its protracted trade dispute with the world’s largest economy with a “diplomatic” attitude with each side giving and taking to balance out each country’s position as to the dispute.

I am more negative than positive as a long weekend approaches – never knowing what could happen geopolitically … my typical response is WHAT is SUSTAINABLE?

I don’t trust these markets but, I do its components and mechanics and I say … FEAR is the dominant attribute to this market and “our’ universe of cell and gene therapy companies.

 

If central banks do nothing … who cares; they don’t fund innovation in biotech.

I believe the trade war about tariffs will be resolved and it will all be about “face” and who will be able to declare victory, both countries will – for they will trade one liability for another!

As far as economic news, in Q2 U.S. GDP growth was revised down to 2% from 2.1%. The revision was in line with analyst expectations. Pending home sales for July will follow slightly later in the session.

Both countries can NOT afford to be one upping the other; they need to sell to open doors and …. Keep their populaces happy!

 

The advance/decline line scenario of 45 covered companies:  

  • Thursday the close was positive with an A/D Line of 27/13 and 3 flat and 2 acquired;
  • Wednesday the close was positive with an A/D Line of 30/13 and 0 flat and 2 acquired;
  • 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;

 

Decliners:

  • Solid Biosciences (SLDB -$0.67);
  • Voyager Therapeutics (VYGR -$0.36);
  • Global Blood therapeutics (GBT -$0.18 after Wednesday’s+$1.53, Tuesday’s -$1.78 and Monday’s +$1.77);
  • MiMedx (MDXG -$0.16 after Wednesday’s -$0.16);
  • Vericel (VCEL -$0.12);

Incliners:

  • bluebird bio (BLUE +$2.64 after Wednesday’s +$2.89, Tuesday’s -$3.00 and Monday’s -$1.53);
  • Sage Therapeutics (SAGE +$2.83 after Wednesday’s +$1.62 and Tuesday’s -$2.54);;
  • Regenxbio (RGNX +$1.80);
  • Ultragenyx (RARE +$1.57 after Wednesday’s +$2.49, Tuesday’s  -$3.72 and Monday’s -$1.07);
  • BioMarin Pharmaceuticals (BMRN +$0.92 after Wednesday’s -$0.99);

 

The percentage (%) indicators: 

  • Thursday’s range of the 27 upside was +0.09% (ALNY) to +14.62% (AGTC) while the 13 downside ranged from -0.13% (AXGN) to -7.37% (SLDB);
  • Wednesday’s range of the 30 upside was +0.13% (ALNY) to +10.38% (CUR) while the 13 downside ranged from -0.20% (ONCE) to -13.46% (BSTG);
  • 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);

 

Upside volume stats:  to compare

  • Thursday: 2 out of the 27 upside had higher than the 3 month average volume;
  • Wednesday: 4 out of the 30 upside had higher than the 3 month average volume;
  • 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;

Downside volume stats: NOTICE

  • Thursday: 4 out of the 13 downside had higher than the 3 month average volume;
  • Wednesday: 2 out of the 13 downside had higher than the 3 month average volume;
  • 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;

 

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

 

August’s sessions:

Thursday closed POSITIVE with 13 decliners, 27 advancers, 3 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 13 decliners, 30 advancers, 0 flat and 2 acquired (AST & OSIR);

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.