November 5, 2019 6:31pm

Defining the stutter: Tuesday the IBB closed up +0.02% and the XBI closed flat at 0.00%, Monday the IBB closed down -0.35% and the XBI closed down -0.53% following Friday with the IBB closed up +2.34% while the XBI closed up +2.49%

As volume continues on the low side, unsteadiness rules

Timely insights have line extensions within or to a volatile pricing universe. Thus my line in writing is separating actionable numbers or intelligence and news into a short-term investment thesis to tackle the “unknown unknowns”


 

CEOs should be re-thinking a motto: “Duty, Honor and Shareholders” – many have forgotten who they really work for!

 

The Dow closed UP +30.42 points (+0.11%), the S&P closed DOWN -3.65 points (-0.12 %) and the NASDAQ closed UP +1.48 points (+0.02%)

 

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

  • Tuesday the IBB closed up +0.02% while the XBI closed flat at 0.00%
  • Monday the IBB closed down -0.35% while the XBI closed down -0.53%
  • Friday the IBB closed up +2.34% while the XBI closed up +2.49%

 

The advance/decline line scenario of 45 covered companies:  

  • Tuesday the close was positive with an A/D line of 23/17, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was negative with an A/D line of 18/22, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Friday the close was positive with an A/D line of 33/7, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

What is there to say, of my 45 companies – 23 closed positive …

The IBB (+0.02%) barely moved and the XBI closed flat

I would caution investors to not pin all their hopes for a steady earnings season.

 

The sector and overall stock market consistently rises and falls with alternating volatility and involuntary momentum contractions which I call “spasms”

Thoughts to live by: slow is smooth and smooth is fast

 

Decliners:

  • bluebird bio (BLUE -$2.06 after Monday’s +$0.35 and Friday’s +$1.86);
  • CRISPR Therapeutics (CRSP -$1.56 after Monday’s -$2.12)
  • Ultragenyx (RARE -$0.90);
  • Audentes Therapeutics (BOLD -$0.79 after Monday’s -$1.10 and Friday’s +$2.16);
  • Ionis Pharmaceuticals (IONS -$0.36);

Incliners:

  • Vericel (VCEL +$2.09);
  • Spark therapeutics (ONCE +$1.69);
  • uniQure NV (QURE +$1.42 after Monday’s -$1.54);
  • BioMarin Pharmaceuticals (BMRN +$1.12);
  • BioLife Solutions (BLFS +$0.82);

 

The percentage (%) indicators: 

  • Tuesday’s range of the 23 upside was +0.34% (ALNY) to +12.86% (VCEL) while the 17 downside ranged from -0.32% (ONVO) to -16.94% (CUR);

 

  • Monday’s range of the 18 upside was +0.09% (ONCE) to +19.63% (BLCM) while the 29 downside ranged from -0.07% (BMRN) to -16.94% (CUR);

 

  • Friday’s range of the 33 upside was +0.57% (BMRN) to +30.39% (BLCM +$0.24) while the 7 downside ranged from -0.66% (AGTC) to -3.04% (FIXX);

 

Upside volume stats:  to compare

  • Tuesday: 5 out of the 23 upside had higher than the 3 month average volume;
  • Monday: 1 out of the 19 upside had higher than the 3 month average volume;
  • Friday: 8 out of the 33 upside had higher than the 3 month average volume;

Downside volume stats:

Tuesday: 6 out of the 17 downside had higher than the 3 month average volume;

  • Monday: 1 out of the 22 downside had higher than the 3 month average volume;
  • Friday: 3 out of the 7 downside had higher than the 3 month average volume;

 

2 flat – NTLA and RENE.L 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.

 

November’s sessions:

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

Monday closed NEGATIVE with19 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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

 

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.