October 14, 2019 5:18pm
Sentiment, low volume, percentage change, momentum, sustainability and the list goes on especially with Q3 results about to be released
What’s rife is speculation versus any buyers delight in possessing a “comer”
“Like a story” today and its trending pricing and momentum and it’s a next day or week’s dog
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 down -29.23 points (-0.11%), the S&P closed down -4.12 points (-0.14%) and the NASDAQ closed down -8.39 points (-0.10%)
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday the IBB closed up +0.38% while the XBI closed down -0.18%
- Friday the IBB closed up +1.24% while the XBI closed up +1.07%
A bout of anxiety has hit the trades talks as sector equities and market indexes closed lower on Monday as new worries around a U.S.-China trade agreement emerged.
As part of phase one, China would buy between $40 billion and $50 billion in U.S. agricultural products; China also agreed to address intellectual-property concerns raised by the U.S. In return, the U.S. agreed to hold off on a tariff hike scheduled for this week <CNBC>.
Questions still linger as both countries need each other to grow forward and cooperation for each’s need for growth!
Investors also braced for the start of the earnings season, with another conference call announcement by Athersys (ATHX) for 11/6.
Step up or step out for progress to be made; forward motion is an acronym for doing ones job right the first time or even by the second; for to strike out on the third pitch or miss the throw is the kiss of death and then there are the fans and detractors who boo quietly or loudly from the stands to leave in the next inning (an analogy to be remembered)!
Investors are more fickle than you think or didn’t!
The advance/decline line scenario of 45 covered companies:
- Monday the close was negative with an A/D line of 12/28, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
- Friday the close was positive with an A/D line of 29/13, 0 flat, 1 reversed merged (HSGX) and 2 acquired;
- ReNeuron (RENE.L -$24.50 after Friday’s -$4.00, Thursday’s +$3.50, Wednesday’s -$2.50, Tuesday’s-$10.00 and last Monday’s -$2.50;
- Regenxbio (RGNX -$4.71);
- Audentes Therapeutics (BOLD -$1.32);
- Sage Therapeutics (SAGE -$1.22 after Friday’s +$4.58, Thursday’s -$1.33 and Wednesday’s -$2.21);
- Spark Therapeutics (ONCE -$1.12 after Friday’s +$3.54 and Thursday’s -$1.76);
- Ultragenyx (RARE -$1.10 after Friday’s +$1.01);
- BioLife Solutions (BLFS +0.98);
- Adverum Biotechnologies (ADVM +$0.80) on news;
- bluebird bio (BLUE +$0.64 after Friday’s -$1.17, Thursday’s -$0.82 and Wednesday’s +$1.42);
- Solid Biosciences (SLDB +$0.59 after Friday’s +$1.05);
- Caladrius Biosciences (CLBS +$0.19)
The percentage (%) indicators:
- Monday’s range of the 12 upside was +0.22% (ALNY) to +15.12% (ADVM) while the 28 downside ranged from -0.09% (GBT) to -14.67% (RENE.L);
- 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);
Upside volume stats: to compare
- Monday: 3 out of the 12 upside had higher than the 3 month average volume;
- Friday: 7 out of the 29 upside had higher than the 3 month average volume;
Downside volume stats:
- Monday: 2 out of the 28 downside had higher than the 3 month average volume;
- Friday: 8 out of the 13 downside had higher than the 3 month average volume;
2 flat – VSTM and MDXG with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche is still being delayed (October?)
Monday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);
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.