October 11, 2019 6:09pm

As the Advance/Decline (A/D) line jumps again from 23/17 to 29/13 – two (2) sessions in a row

Volume is not the foundation of positive moves with a two (2) session upside which is basically supported by the outcome from U.S. – China negotiations

Support needs to be solidified by clinical results; otherwise the machines and algorithms control the spread of the ranges

In compiling my indication signals, I draw on logic, historical precedents, specific knowledge of the sector and its practices as to lessons learned.  It’s important for investors to identify and determine which indication is actually performance based.

 

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes

 

The Dow closed up +319.92 points (+1.21%), the S&P closed up +32.14 points (+1.09%) and the NASDAQ closed up +106.27 points (+1.34%)

 

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

  • Friday the IBB closed up +1.24% while the XBI closed up +1.07%
  • Thursday the IBB closed up +1.25% while the XBI closed up +1.33%
  • 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%

 

Henry’omics:

Yesterday I wrote about, “A breakout for the oversold with low volume” – an indicator and it was!

Sector equities and market indexes rallied on Friday after President Trump said China and the U.S. reached the first phase of a substantial trade deal that delays tariff hikes that were set to kick in next week.

Today’s gains helped the Dow and S&P 500 snap a three-week losing streak. The Dow (+0.09%), S&P 500 (+0.06%) and the NASDAQ (+0.09%) ended the week.

As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday. Treasury Secretary Steven Mnuchin said both sides struck an “almost complete agreement” on currency and financial services issues. Phase two of the deal will “start almost immediately” after the first one is signed, Trump said <CNBC>.

 

Funny, how we bless ourselves and are thankful for two (2) sessions closing positive in a row (sarcasm)!

 

The advance/decline line scenario of 45 covered companies:  

  • Friday the close was positive with an A/D line of 29/13, 0 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Thursday the close was positive with an A/D line of 23/17, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • 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;

 

Decliners:

  • ReNeuron (RENE.L -$4.00 after Thursday’s +$3.50, Wednesday’s -$2.50, Tuesday’s-$10.00 and Monday’s -$2.50;
  • bluebird bio (BLUE -$1.17 after Thursday’s -$0.82, Wednesday’s +$1.42);
  • Homology Therapeutics (FIXX -$0.31);
  • Applied Genetic Technologies (AGTC -$0.09);
  • Mesoblast (MESO -$0.07);

Incliners:

  • Sage Therapeutics (SAGE +$4.58 after Thursday’s  -$1.33 and Wednesday’s -$2.21);
  • Spark Therapeutics (ONCE +$3.54 after Thursday’s -$1.76);
  • Alnylam Pharmaceuticals (ALNY +$1.33);
  • Solid Biosciences (SLDB +$1.05);
  • Ultragenyx (RARE +$1.01);

 

The percentage (%) indicators: 

  • Friday’s range of the 29 upside was +0.41% (CRSP) to +11.23% (SLDB) while the 12 downside ranged from -0.20% (CLLS) to -4.96% (CUR);
  • Thursday’s range of the 23 upside was +0.22% (CRSP) to +5.957% (BSTG) while the 17 downside ranged from -0.02% (CLLS) to -3.33% (VYGR);
  • 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:  

  • Friday: 7  out of the 29 upside had higher than the 3 month average volume;
  • Thursday: 6 out of the 23 upside had higher than the 3 month average volume;
  • 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:

  • Friday: 8 out of the 13 downside had higher than the 3 month average volume;
  • Thursday: 5 out of the 17 downside had higher than the 3 month average volume;
  • 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;

 

0 flat with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche is still being delayed (October?)

 

October’s sessions:

Friday closed POSITIVE with 13 decliners, 29 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 23 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

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.