September 11, 2019 7:41pm

Is this week’s gold, tomorrow’s tin?

News: Fate Therapeutics (FATE) proposes an offering; closing at down -$0.71 (-3.72%) to $18.39 with a negative aftermarket response of -$0.67 or -3.64% - numbers of size or pricing was not made available?

Recollect the unforgotten, 18 years and we still say a prayer about those lost on 9/11 and responders and relatives who still suffer

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 +227.61points or +0.85% to 27,137.04;
  • The S&P closed up +21.54 points or +0.72% at 3,000.93;
  • The NASDAQ was up +85.52 or +1.06% to 8,169.68;

 

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

  • Wednesday the IBB closed up +1.78% while the XBI also closed up +1.65%
  • 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%

 

Henry’omics:

Sector equities jumped on Wednesday as markets bounced to the upside, pushing the indexes back to levels not seen since late July.

The Dow posted its first six-day winning streak since June; marking its first close above 27,000 since July 30. The Dow is now less than 1% from its all-time high reached July 16.The S&P 500 closed at its highest level since late July; ending the day less than 1% from a record high set on July 26. The NASDAQ had its best close since July 31.

Investors also felt better as the U.S. producer price index rose 0.1% in August.

 

I recommend selling into strength - NOT trusting the sector's low volume moves! I am always a safe versus sorry investor - hit singles, hope for doubles but, beware of stealing third base and the percentage of homeruns in this market!

 

The advance/decline line scenario of 45 covered companies:  

  • Wednesday the close was positive with an A/D Line of 26/15 and 2 flats and 2 acquired;
  • 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;

 

Decliners:

  • ReNeuron (RENE.L -$5.00 after Tuesday’s -$5.00);
  • BioMarin Pharmaceuticals (BMRN -$1.19 after Tuesday’s +$1.66);
  • Fate Therapeutics (FATE -$0.71) after announcing an offering
  • bluebird bio (BLUE -$0.71 after Tuesday’s +$2.14);
  • BioLife Solutions (BLFS -0.52);

Incliners:

  • Sage Therapeutics (SAGE +7.60);
  • Global Blood therapeutics (GBT +$2.84);
  • Ionis Pharmaceuticals (IONS +$2.04 after Tuesday’s+$2.67 and Monday’s -$1.63);
  • Alnylam Pharmaceuticals ( ALNY +$1.90 after Tuesday’s +$1.58 and Monday’s +$2.87;
  • Ultragenyx (RARE +$1.88)

 

The percentage (%) indicators: 

  • Wednesday’s range of the 26 upside was +0.31% (ONCE) to +10.29% (KOOL) while the 15 downside ranged from -0.12% (HSGX -$0.003) to -3.72% (FATE);
  • 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);

 

Upside volume stats:  to compare

  • Wednesday: 10 out of the 26 upside had higher than the 3 month average volume;
  • 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;

Downside volume stats:

  • Wednesday: 5 out of the 15 downside had higher than the 3 month average volume;
  • 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;

 

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

 

September’s sessions:

Wednesday closed POSITIVE with 15 decliners, 26 advancers, 2 flats and 2 acquired (AST & OSIR);

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.