September 10, 2019 6:09pm

I’m thankful of appreciation of the past oversold “conditions” but, value’s performance seems lately to be “pierced” by short-term profit taking

Volume exposes the fragility as 9 out of the 31 upside had higher than the 3 month average volume while 7 out of the 10 downside had higher than the 3 month average volume;

Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment

 

The sector is what it is, until it isn’t and even then it doesn’t seem to be…

 

Markets and indexes:

  • The Dow closed up +73.92 points or +0.28% to 26,909.43;
  • The S&P closed up +0.96 points or +0.03% at 2,978.43;
  • The NASDAQ was down -3.28 or -0.04% to 8,084.15;

 

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

  • Tuesday the IBB closed up +1.15% while the XBI also closed up +2.47%
  • Monday the IBB closed down -0.41% while the XBI also closed down -0.15%
  • Friday the IBB closed down -0.15% while the XBI also closed down -0.87%

 

Henry’omics:

Rotation is the sector’s middle name as trading sets expectation …

The issue … sentiment is expressed through machines and NOT human investment.

Even though pricing has appreciated, momentum seems to be still … SLOW!

The Dow came into Tuesday’s session riding a five session winning streak on renewed optimism in U.S.-China trade talks as the NASDAQ drops for second session.

The problem is we are driving into a cyclical storm as September and the quarter (Q3) comes slowly to an end.

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was positive with an A/D Line of 31/10 and 2 flats and 2 acquired;
  • Monday the close was positive with an A/D Line of 25/18 and 0 flat and 2 acquired;
  • Friday the close was negative with an A/D Line of 16/26 and 1 flat and 2 acquired;

 

Decliners:

  • ReNeuron (RENE.L -$5.00);
  • Adverum (ADVM -$0.86);
  • Cesca Therapeutics (KOOL -$0.31 after Monday’s +$0.59) – had to happen;
  • AxoGen (AXGN -$0.26 after Monday’s -$0.96 and Friday’s +$0.26);
  • Caladrius Biosciences (CLBS -$0.06);

Incliners:

  • Regenxbio (RGNX +$3.88);
  • Ionis Pharmaceuticals (IONS +$2.67 after Monday’s -$1.63) – was oversold;
  • bluebird bio (BLUE +$2.14) – was oversold;
  • BioMarin Pharmaceuticals (BMRN +$1.66);
  • Alnylam Pharmaceuticals ( ALNY +$1.58 after Monday’s +$2.87 and Friday’s -$3.32);

 

The percentage (%) indicators: 

  • Tuesday’s range of the 31 upside was +0.26% (BLFS) to +20.87% (MESO) while the 10 downside ranged from -0.44% (STML) to -11.66% (HSGX);
  • Monday’s range of the 25 upside was +0.22% (BLUE) to +16.81% (KOOL) while the 18 downside ranged from -0.25% (RENE.L) to -5.84% (AXGN);
  • Friday’s range of the 16 upside was +0.21% (ONCE) to +17.50% (AGTC) while the 26 downside ranged from -0.39% (MESO) to -6.74% (RENE.L);

 

Upside volume stats:  to compare

  • Tuesday: 9 out of the 31 upside had higher than the 3 month average volume;
  • Monday: 10 out of the 25 upside had higher than the 3 month average volume;
  • Friday: 4 out of the 16 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 7 out of the 10 downside had higher than the 3 month average volume;
  • Monday: 6 out of the 18 downside had higher than the 3 month average volume;
  • Friday: 9 out of the 26 downside had higher than the 3 month average volume;

 

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

 

September’s sessions:

Tuesday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 18 decliners, 25 advancers, 0 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 26 decliners, 16 advancers, 1 flat and 2 acquired (AST & OSIR);

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.