Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: downward motion follows yesterday’s upswing

October 22, 2019 6:34pm

While low volume moves continue expressing descending sentiment

Q3 reporting cycle is off to an run-of-the-mill twitch, though estimates for the period moved south ahead of the earnings season; the actual results to date have been better relative to lowered estimates

It's a daunting task to define risk parameters, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!

The sector is what it is, until it isn’t and even then it doesn’t seem to be…

The Dow closed DOWN -39.54 points (-0.15%), the S&P closed DOWN -10.73 points (-0.36%) and the NASDAQ closed DOWN -58.69 points (-0.72%)

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

Tuesday the IBB closed up +1.72% while the XBI closed up +0.65%
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:

Tuesday the close was negative with an A/D line of 16/23, 3 flats, 1 reversed merged (HSGX) and 2 acquired;
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 lower on Tuesday, after U.K. lawmakers rejected a limited time frame to review a deal on Brexit; making an Oct. 31 deadline extension more likely.

Biogen (BIIB) surged more than 26% after announcing it will seek regulatory approval for its Alzheimer’s treatment. The stock and lifted the broader biotechnology space. The iShares Nasdaq Biotechnology ETF (IBB) closed 1.7% higher.

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

Decliners:

bluebird bio (BLUE -$3.76 after Monday’s +$1.95, Friday’s -$1.80, Thursday’s -$0.29 and last Wednesday’s +$2.07);
Sage Therapeutics (SAGE -$1.22);
CRISPER Therapeutics (CRSP -$1.05 after Monday’s +$2.14);
Regenxbio (RGNX -$0.92 after Monday’s +$1.57, Friday’s -$1.28 and Thursday’s +$0.64);
AxoGen (AXGN -0.76);

Incliners:

Alnylam Pharmaceuticals (ALNY +$2.40 after Monday’s +$1.98 and Friday’s +$2.90);
Solid Biosciences (SLDB -$0.75);
Stemline Therapeutics (STML +0.37);
Cesca Therapeutics (KOOL +$0.22);
Fate Therapeutics (FATE +$0.18);

The percentage (%) indicators:

Tuesday’s range of the 16 upside was +0.29% (CLLS) to +6.17% (SLDB) while the 23 downside ranged from -0.08% (MDXG) to -5.97% (AXGN);

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

Tuesday: 2 out of the 16 upside had higher than the 3 month average volume;
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:

Tuesday: 8 out of the 23 downside had higher than the 3 month average volume;
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;

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

October’s sessions:

Tuesday closed NEGATIVE with 23 decliners, 16 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.