November 20, 2019 5:14pm

Answer: News and trading with low volume

News: The FDA has approved Alnylam Pharmaceuticals (ALNY +$7.34) gene silencing drug will treat patients with acute hepatic porphyria, a rare inherited genetic disorder that can cause seizures and back pains.  The newly approved drug, Givlaari, uses a mechanism known as RNA interference to target and "silence" specific genetic material, blocking the production of the deadly protein that causes that disease.

Financing: CRISPR Therapeutics AG (CRSP -$1.04 after yesterday’s close of +$9.93 which was down -$2.84 or -4.15%) in the pre-market as it commenced an offering of 4.25 M shares.

In the short run, values can be pretty senseless if one side or the other decides to be aggressive in their buying or selling.

 

Framing the main takeaway … pricing and volume as news creates volatility and liquidity!

 

The Dow closed DOWN -112.93 (-0.40%), the S&P closed DOWN -11.72 points (-0.38%) and the NASDAQ closed DOWN -43.93 points (-0.51%)

 

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

  • Wednesday the IBB closed up +0.51% while the XBI closed up +0.28%
  • Tuesday the IBB closed up +2.21% while the XBI closed up +2.18%
  • Monday the IBB closed down -0.26% while the XBI closed up +0.24%

 

The advance/decline line scenario of 45 covered companies:

  • Wednesday the close was positive with an A/D line of 23/18, 1 flat, 1 reversed merged (HSGX) and 2 acquired;

 

  • Tuesday the close was positive with an A/D line of 34/11, 1 flat, 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;

                                                    

Henry’omics:

“Our” universe, the cell and gene therapy sector rose based on being oversold and news of an approved treatment (ALNY).

Indexes fell on Wednesday, pulling back from record highs after it was reported a so-called phase one trade deal between China and the U.S. may not be completed by the end of 2019.

Thus, we are more than probably stuck in a holding pattern of “saving face”.

Traders were also keeping an eye on the impeachment proceedings in Washington as the uncertainty around them could hinder Trump’s negotiating position with China <CNBC>.

Investors digested the minutes from the Fed’s meeting in October. The minutes showed Fed officials see little need to cut rates any further. The U.S. central bank decided to lower the federal funds rate by 25 basis points to a range of 1.5% to 1.75% late last month.

 

News tangled with economics and trading as markets got stumped by geo-politics but ... my composite of companies saw sunshine between the clouds.

 I don’t see … sustainability as a viable force in this market!

 

Decliners:

  • ReNeuron (RENE.L -$4.00 after Tuesday’s -$2.50 and Monday’s +$11.50);
  • uniQure (QURE -$1.54);
  • CRISPR Therapeutics (CRSP -$1.04) on offering;
  • bluebird bio (BLUE -$1.00);
  • AxoGen (AXGN -$0.32);
  • Regenxbio (RGNX -$0.30);

Incliners:

  • Alnylam Pharmaceuticals (ALNY +$7.34 after Tuesday’s +$5.20, Monday’s +$0.68 and Friday’s +$1.59);
  • Sage Therapeutics (SAGE +$3.910;
  • Ionis Pharmaceuticals (IONS +$1.73);
  • Ultragenyx (RARE +$0.98);
  • Global Blood Therapeutics (GBT +$0.79 after Tuesday’s +$3.35, Monday’s +$0.74 and Friday’s +$2.41);

 

The percentage (%) indicators:

  • Wednesday’s range of the 23 upside was +0.15% (ONCE) to +7.50% (ALNY) while the 18 downside ranged from -0.34% (BMRN) to -3.12% (EDIT); 

 

  • Tuesday’s range of the 34 upside was +0.16% (ONCE) to +16.87% (CRSP) while the 7 downside ranged from -0.13% (AXGN) to -2.11% (CLBS);

 

  • Monday’s range of the 18 upside was +0.01% (BLUE) to +11.50% (RENE.L) while the  22 downside ranged from -0.23% (VYGR) to -4.75% (VSTM);

 

Upside volume stats:  to compare

  • Wednesday: 10 out of the 23 upside had higher than the 3 month average volume;
  • Tuesday: 15 out of the 34 upside had higher than the 3 month average volume;
  • Monday: 8 out of the 18 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 4 out of the 18 downside had higher than the 3 month average volume;
  • Tuesday: 2 out of the 7 downside had higher than the 3 month average volume;
  • Monday: 5 out of the 22 downside had higher than the 3 month average volume;

 

1 flat – 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.

 

November’s sessions:

Wednesday closed POSITIVE with 18 decliners, 23 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed POSITIVE with 7 decliners, 34 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGATIVE with 22 decliners, 18 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 13 decliners, 26 advancers, 3 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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

Wednesday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGAIVE with 27 decliners, 14 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 11 decliners, 29 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed POSITIVE with 18 decliners, 21 advancers, 3 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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

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.