September 5, 2019 7:47pm

… With the cell and gene therapy sector along for the ride (in some cases) after being oversold

Remember the mythological tale of Icarus

Inanimate machine’s electronic trading and algorithms rules do not include a loyalty code line

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

 

We crave explanations because they give us an illusion of control. The philosopher Friedrich Nietzsche once observed that "any explanation is better than none."

 

Markets and indexes:

  • The Dow closed up +372.68 points or +1.41% to 26,728.15;
  • The S&P closed up +38.22 points or +1.30% at 2,976.00;
  • The NASDAQ was up +139.95 or +1.75% to 8,116.83;

 

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

  • Thursday the IBB closed up +1.17% while the XBI also closed up +1.48%
  • Wednesday the IBB closed up +0.06% while the XBI also closed up +0.51%
  • Tuesday the IBB closed down -1.67% while the XBI also closed down -1.81%
  • Monday was a holiday

 

Henry’omics:

Sector equities surged on Thursday after the U.S. and China agreed to meet next month in Washington to discuss trade. How about surging on its own merit, rather than being oversold!

On the data front, private payrolls in the U.S. increased by 195,000 according to ADP and Moody’s Analytics. Economists polled by Dow Jones expected payrolls to grow by 140,000. The report from ADP and Moody’s Analytics is seen by investors as a preview to the U.S. government’s monthly nonfarm payrolls report, which is scheduled for release Friday morning. The payrolls data comes as the Federal Reserve is reportedly gearing up to lower interest rates by 25 basis points later this month. The move would follow another quarter-point rate cut back in July. The Institute for Supply Management said the U.S. services sector expanded at a faster-than-expected rate last month <CNBC>.

 

Any surge lately is followed by a purge … SELL … some highs or the machines will do it for your portfolio!

It’s coming …

 

The advance/decline line scenario of 45 covered companies:  

  • Thursday the close was positive with an A/D Line of 31/11 and 1 flat and 2 acquired;
  • Wednesday the close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;
  • Tuesday the close was negative with an A/D Line of 12/29 and 2 flats and 2 acquired;
  • Monday was a holiday;

 

Decliners:

  • uniQure (QURE) -$8.32 after announcing an offering;
  • ReNeuron (RENE.L -$7.50 after Wednesday’s -$4.99 after Tuesday’s -$7.50 another what did you expect after Friday’s +$26.00);
  • Sage Therapeutics (SAGE -$2.49 after Wednesday’s +$1.60 and Tuesday’s-$10.88; what did you expect after yesterday and Friday’s+$0.81;
  • Biostage (BSTG -$0.39 – day traders;
  • Stemline (STML -$0.34);

Incliners:

  • Global Blood Therapeutics (GBT +$5.17 after Wednesday’s +$1.60);
  • bluebird bio (BLUE +$2.68 after Wednesday’s -0.77 and Tuesday’s -$2.49 – it was oversold;
  • Spark Therapeutics (ONCE +$1.56);
  • Ultragenyx (RARE +$1.48 after Wednesday’s -$6.23 and Tuesday’s -$3.18) – oversold bounce back;
  • CRISPR Therapeutics (CRSP +$1.41 after Wednesday’s +$0.66)

 

The percentage (%) indicators: 

  • Thursday’s range of the 31 upside was +0.49% (BMRN) to +10.89% (GBT) while the 11 downside ranged from -0.49% (RGNX) to -14.86% (QURE);
  • Wednesday’s range of the 22 upside was +0.21% (IONS) to +9.24% (ADVM) while the 20 downside ranged from -0.10% (SGMO) to -12.15% (RARE);
  • 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;

 

Upside volume stats:  to compare

  • Thursday: 7 out of the 31 upside had higher than the 3 month average volume;
  • Wednesday: 2 out of the 22 upside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 12 upside had higher than the 3 month average volume;
  • Monday was Labor Day;

Downside volume stats:

  • Thursday: 4 out of the 11 downside had higher than the 3 month average volume;
  • Wednesday: 7 out of the 20 downside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 29 downside had higher than the 3 month average volume;
  • Monday markets were closed; 

 

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

 

September’s sessions:

Thursday closed POSITIVE with 11 decliners, 31 advancers, 1 flat and 2 acquired (AST & OSIR);

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

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.