October 28, 2019 7:00pm

As the sector breaks out of trading ranges, still with low volumes

Three (3) positive closes of out of six (6) sessions

Quarterly earnings: uniQure N.V. (QURE) – miss and CRISPER Therapeutics (CRSP) - beat

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 UP +128.08 points (+0.48%), the S&P closed UP +16.72 points (+0.55%) and the NASDAQ closed UP +82.87 points (+1.01%)

 

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

  • Monday the IBB closed up +1.34% while the XBI closed up +1.39%
  • Friday the IBB closed down -0.15% while the XBI closed up +1.20%

 

The advance/decline line scenario of 45 covered companies:  

  • Monday the close was positive with an A/D line of 27/12, 3 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Friday the close was positive with an A/D line of 30/11, 1 flat, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

Sector equities leaped as indexes showed renewed strength with a second up session in a row.

Monday’s moves come ahead of a highly anticipated Fed meeting later this week. The Fed is largely expected to cut rates by 25 basis points for the third time this year.

Improvement on the U.S.-China trade front has also lifted investor sentiment recently. U.S. and Chinese officials said they were “close to finalizing” some parts of a trade agreement <CNBC>.

 

Today, it’s trading the oversold not sentiment oriented which turns as the cycles revolves and its earnings season of estimates versus forecasts and revenues beats or misses!

 

Decliners:

  • ReNeuron (RENE.L -$7.50 after Friday’s -$8.00);
  • Sage Therapeutics (SAGE -$4.06 after Friday’s +$4.56, Thursday’s -$0.50, Wednesday’s +$2.58 and last Tuesday’s -$1.22);
  • Global Blood Therapeutics (GBT -$0.70 after Friday’s +$1.48);
  • Solid Biosciences (SLDB -$0.61 after Friday’s -$0.51);
  • Homology Biosciences (FIXX -$0.41 after Friday’s -$0.20);

Incliners:

  • CRISPER Therapeutics (+$5.00);
  • bluebird bio (BLUE +$3.42);
  • Ionis Pharmaceuticals (IONS +$1.57);
  • Ultragenyx (RARE +$1.13)
  • BioMarin Pharmaceuticals (BMRN +$0.96 after Friday’s +$1.74, Thursday’s +$0.44, Wednesday’s +$1.28 and last Tuesday’s -$0.99);

 

The percentage (%) indicators: 

  • Monday’s range of the 27 upside was +042% (ONCE) to +12.55% (CRSP) while the 12 downside ranged from -0.40% (MDXG) to -7.92% (KOOL -$0.37);
  • Friday’s range of the 30 upside was +0.07% (IONS) to +8.65% (ADVM) while the 11 downside ranged from -1.34% (AXGN) to -5.46% (RENE.L);

 

Upside volume stats:  to compare

  • Monday: 8 out of the 27 upside had higher than the 3 month average volume;
  • Friday: 9 out of the 30 upside had higher than the 3 month average volume;

Downside volume stats:

  • Monday: 3 out of the 12 downside had higher than the 3 month average volume;
  • Friday: 0 out of the 11 downside had higher than the 3 month average volume;

 

3 flat – PSTI, ATHX and BSTG with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche could be soon according to rumors from FTC by year’s end.

 

October’s sessions:

Monday closed POSITIVE with 12 decliners, 27 advancers, 3 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 11 decliners, 30 advancers, 1 flat, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 27 decliners, 13 advancers, 2 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 26 decliners, 16 advancers, 0 flats, 1 reverse merged (HSGX) and 2 acquired (AST & OSIR);

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.