October 21, 2019 7:22pm

As the Advance/Decline (A/D) line progresses to 28/13 from Friday’s 7/33

While trading volume still remains low

News: Homology Medicines (FIXX +$0.63) presented preclinical data that support its investigational gene therapy programs for the treatment of metachromatic leukodystrophy (MLD) and phenylketonuria (PKU). Global Blood Therapeutics (GBT +1.84) announced results of a post-hoc analysis of data from the P3 HOPE (Hemoglobin Oxygen Affinity Modulation to Inhibit HbS PolymErization) Study of voxelotor, an oral, once-daily therapy in development for the treatment of sickle cell disease (SCD). Results of this exploratory analysis suggest that voxelotor resolved or reduced the severity of existing leg ulcers and decreased the incidence of new leg ulcers in patients with SCD. 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 +57.44 points (+0.21%), the S&P closed UP +20.62 points (+0.69%) and the NASDAQ closed UP +73.44 points (+0.91%)

 

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

  • Monday the IBB closed up +1.31% while the XBI closed up +1.44%
  • Friday the IBB closed DOWN -0.76% while the XBI closed DOWN -0.96%

 

The advance/decline line scenario of 45 covered companies:  

  • Monday the close was positive with an A/D line of 28/13, 1 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Friday the close was negative with an A/D line of 7/33, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

Sector equities and market indexes closed higher on Monday, boosted by optimism around U.S.-China trade talks as well as the corporate earnings season.

The machines are whirring as the algorithms “rule” on the side of the oversold just before Q3 reporting begins on 10/23 with BioMarin Pharmaceuticals (BMRN) stepping up the onslaught!

 

Decliners:

  • ReNeuron (RENE.L -$11.50 after Friday’s +$11.50, Thursday’s -$4.00, Wednesday’s +$14.00, Tuesday’s -$16,50 and last Monday’s -$24.50;
  • BioMarin Pharmaceuticals (BMRN -$0.73 after Friday’s +$1.25);
  • Ultragenyx (RARE -$0.72);
  • Ionis Pharmaceuticals (IONS -$0.53);
  • Mesoblast (MESO -$0.27);
  • Applied Genetic Technologies (AGTC -$0.16);

Incliners:

  • CRISPERS Therapeutics (CRSP +$2.14);
  • Alnylam Pharmaceuticals (ALNY +$1.98 after Friday’s +$2.90);
  • bluebird bio (BLUE +$1.95 after Friday’s -$1.80, Thursday’s -$0.29 and Wednesday’s +$2.07);
  • Global Blood Therapeutics (GBT +$1.84 after Friday’s -$1.33 and Thursday’s +0.89);
  • Regenxbio (RGNX +$1.57 after Friday’s -$1.28 and Thursday’s +$0.64);

 

The percentage (%) indicators: 

  • Monday’s range of the 28  upside was +0.70% (SAGE) to +7.22% (PSTI +$0.22) while the 13 downside ranged from -0.14% (ONVO) to -7.80% (RENE.L);

 

  • Friday’s range of the 7 upside was +0.11% (STML) to +8.46% (RENE.L) while the 33 downside ranged from -0.19% (MDXG) to -1.05% (XON);

 

Upside volume stats:  to compare

  • Monday: 5 out of the 28 upside had higher than the 3 month average volume;
  • Friday: 3 out of the 7 upside had higher than the 3 month average volume;

Downside volume stats:

  • Monday: 3 out of the 13 downside had higher than the 3 month average volume;
  • Friday: 9 out of the 33 downside had higher than the 3 month average volume;

 

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

 

October’s sessions:

Monday closed POSITIVE with 13 decliners, 28 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 33 decliners, 7 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 17 decliners, 25 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 19 decliners, 23 advancers, 0 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 9 decliners, 32 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

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.