September 3, 2019 8:30pm

Q3 ends in September killing any appreciation that hasn’t taken place

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

Weak manufacturing data also dented investor sentiment along with tariff and trade woes

 

The 6 W’s: Who, what, where, when, why and what of it … the real question is what to do in a volatile market!

 

Markets and indexes:

  • The Dow closed down -285.26 points or -1.08% to 26,118.02;
  • The S&P closed down -20.19 points or -0.69% at 2,906.27;
  • The NASDAQ was down -88.72 or -1.11% to 7,874.16;

 

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

  • Tuesday the IBB closed down -1.67% while the XBI also closed down -1.81%
  • Monday was a holiday
  • Friday the IBB closed down -0.67% while the XBI also closed down -0.91%

 

Henry’omics:

Stocks fell on Tuesday, the first trading day of a historically tough month, after the world’s two largest economies began imposing new tariffs on each other’s goods.

The U.S. imposed 15% tariffs on a variety of Chinese goods on Sunday, while China imposed new charges on U.S. products from Sept. 1. It marked the latest escalation in their long-running trade war <CNBC>.

Friday’s tin wasn’t Tuesday’s gold – my bad!

Equities hit their session lows after the Institute for Supply Management said U.S. manufacturing activity contracted last month for the first time since early 2016.

 

Investors need to think about their buying pace and anticipate encountering resistance even as dips appear which recently have been apparitions

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was negative with an A/D Line of 12/29 and 2 flats and 2 acquired;
  • Monday was a holiday;
  • Friday the close was negative with an A/D Line of 11/30 and 1 flat and 2 acquired;

 

Decliners:

  • Sage Therapeutics (SAGE -$10.88; what did you expect after Friday’s+$0.81, Thursday’s +$2.83, Wednesday’s +$1.62 and last Tuesday’s -$2.54);
  • ReNeuron (RENE.L -$7.50 another what did you expect after Friday’s +$26.00);
  • Ultragenyx (RARE -$3.18);
  • bluebird bio (BLUE -$2.49 – always a target after highs;
  • BioMarin Pharmaceuticals (BMRN -$1.75, what did you expect after Friday’s +$0.45, Thursday’s +$0.92 and last Wednesday’s -$0.99);

Incliners:

  • Spark Therapeutics (ONCE +$1.26 as Roche reiterates a later (regulatory issues) buy following Friday’s-$2.330;
  • uniQure (QURE +$1.11 – still up for sale);
  • Alnylam Pharmaceuticals (ALNY +$1.07 after Friday’s -1.70);
  • Fate Therapeutics (FATE  +$0.63 after news of IND approval and Friday’s -$0.81);
  • Solid Biosciences (+$0.22);

 

The percentage (%) indicators: 

  • Tuesday’s range of the 12 upside was +0.48% (FIXX) to +8.62% (HSGX) while the 29 downside ranged from -0.20% (GBT) to -7.08% (BTX);
  • Monday markets were closed;
  • Friday’s range of the 11 upside was +0.47% (SAGE) to +12.15% (RENE.L) while the 30 downside ranged from -0.15% (BLUE) to -7.08% (BTX);

 

Upside volume stats:  to compare

  • Tuesday: 6 out of the 12 upside had higher than the 3 month average volume;
  • Monday was Labor Day;
  • Friday: 1 out of the 11 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 3 out of the 29 downside had higher than the 3 month average volume;
  • Monday markets were closed; 
  • Friday: 2 out of the 30 downside had higher than the 3 month average volume;
  • had higher than the 3 month average volume;

 

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

 

September’s sessions:

Tuesday closed NEGATIVE with 29 decliners, 12 advancers, 2 flats and 2 acquired (AST & OSIR);

Monday was Labor Day

 

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.