October 9, 2019 5:27pm
As comparables got trounced, the sector gets trashed
Recent periods of days, weeks and months, stock prices go up and down depending on the mood of the market; they are not following fundamentals but, political overtones
Sentiment dissipates while the cell and gene therapy sector runs out of buyers
The sector is what it is, until it isn’t and even then it doesn’t seem to be…
I think Aristotle may have been the first to crystallize the fallacies (in writing at least) of many situations we are trying to deal with. Ad Verecundiam (Appeal to Authority) is certainly one fallacy, Ad Metum (Appeal to Fear) is the answer to the argument!
The Dow closed up +181.97 points (+0.70%), the S&P closed up +26.34 points (+0.91%) and the NASDAQ closed up + 79.96 points (+1.02%)
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday the IBB closed up +0.14% while the XBI closed down -0.33%
- Tuesday the IBB closed down -1.80% while the XBI closed down -1.52%
- Monday the IBB closed up +0.18% while the XBI closed down -0.08%
Sector equities got trashed while markets rose for the first time in three days on Wednesday as traders hoped for some kind of deal to come from U.S.-China trade talks beginning on Thursday, even if it’s a limited pact.
It’s hard to figure whether or why the oversold are not the focus of algorithms and the “machines”; they’re forcing them further down for an upcoming updraft!
There are a lot of cheap pricings out there however, they could easily get cheaper.
Optimism is fading, even from me ... as Q3 earnings’ releases are starting to be announced, BioMarin Pharmaceuticals (BMRN) will conference call on 10/23.
The advance/decline line scenario of 45 covered companies:
- Wednesday the close was negative with an A/D line of 11/27, 4 flats, 1 reversed merged (HSGX) and 2 acquired;
- Tuesday the close was negative with an A/D line of 4/37, 1 flat, 1 reversed merged (HSGX) and 2 acquired;
- Monday the close was negative with an A/D line of 17/25, 1 flat and 2 acquired;
- ReNeuron (RENE.L -$2.50 after Tuesday’s-$10.00 and Monday’s -$2.50;
- Sage therapeutics (SAGE -$2.21);
- Fate Therapeutics (FATE -$1.30 after Tuesday’s +$0.07);
- Ultragenyx (RARE -$1.30 after Tuesday’s -$1.56 after Monday’s +$0.30);
- uniQure (QURE -$0.95;);
- Alnylam Pharmaceuticals (ALNY (+$1.51 after Tuesday’s -$1.49);
- bluebird bio (BLUE +$1.42);
- Ions Pharmaceuticals (IONS +$1.03 after Tuesday’s -$1.40 and Monday’s +$1.47);
- Regenxbio (RGNX +$0.87)
- Global Blood Therapeutics (GBT +$0.69 after Tuesday’s +$0.76 and Monday’s -$2.36);
The percentage (%) indicators:
- Wednesday’s range of the 11 upside was +0.31% (ADRO) to +2.36% (RGNX) while the 27 downside ranged from -0.64% (SLDB) to -11.81% (CLBS);
- Tuesday’s range of the 4 upside was +0.07% (FATE) to +3.07% (BSTG) while the 37 downside ranged from -0.01% (BLUE) to -9.62% (NTLA);
- Monday’s range of the 17 upside was +0.47% (ONCE) to +5.36% (ONVO) while the 25 downside ranged from -0.05% (ALNY) to -7.08% (BTX);
Upside volume stats: to compare
- Wednesday: 3 out of the 11 upside had higher than the 3 month average volume;
- Tuesday: 2 out of the 4 upside had higher than the 3 month average volume;
- Monday: 3 out of the 17 upside had higher than the 3 month average volume;
Downside volume stats:
- Wednesday: 10 out of the 27 downside had higher than the 3 month average volume;
- Tuesday: 10 out of the 37 downside had higher than the 3 month average volume;
- Monday: 8 out of the 25 downside had higher than the 3 month average volume;
4 flat – ATHX, BCLI , MDXG and BSTG with 1, reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche is still being delayed (October?)
Wednesday closed NEGATIVE with 27 decliners, 12 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);
Tuesday closed NEGATIVE with 38 decliners, 4 advancers, 1 flat and 1 reverse merged (HSGX), 2 acquired (AST & OSIR);
Monday closed NEGATIVE with 25 decliners, 17 advancers, 1 flat and 2 acquired (AST & OSIR);
Friday closed POSITIVE with 17 decliners, 24 advancers, 2 flats and 2 acquired (AST & OSIR);
Thursday closed NEUTRAL with 21 decliners, 21 advancers, 1 flat and 2 acquired (AST & OSIR);
Wednesday closed NEGATIVE with 22 decliners, 18 advancers, 3 flats and 2 acquired (AST & OSIR);
Tuesday closed NEGATIVE with 36 decliners, 5 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.