November 29, 2019 3:33pm

Still, selling into strength is a construct that won’t be regretted

Be prepared for the next weeks of algorithm’s retreats

The week’s “numbers” in review

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 … the November month is over!

 

The Dow closed DOWN -112.93 (-0.40%), the S&P closed DOWN -12.65 points (-0.40%) and the NASDAQ closed DOWN -39.70 points (+0.46%)

 

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

  • Friday the IBB closed up +0.22% while the XBI closed up +0.25%
  • Thursday, the market was closed
  • Wednesday the IBB closed up +0.91% while the XBI closed up +1.39%
  • Tuesday the IBB closed up +0.23% while the XBI closed up +0.14%
  • Monday the IBB closed up +2.84% while the XBI closed up +3.75%

 

The advance/decline line scenario of 45 covered companies:

  • Friday the close was positive with an A/D line of 26/15, 1 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Thursday was Thanksgiving day;
  • Wednesday the close was positive with an A/D line of 26/13, 3 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 23/19, 0 flat, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was positive with an A/D line of 34/8, 0 flat, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

Stocks closed lower on Friday as investors awaiting a concrete trade deal took some money off the table after a strong month.

The major averages posted strong monthly gains despite Friday’s losses.

  • The S&P 500 climbed 3.4% to notch its biggest one-month gain since June, when it rallied more than 6%;
  • The Dow gained +3.7% for November;
  • Nasdaq Composite gained 4.5, for November;

They also had their best month since June. For the week, the Dow gained 0.6% while the S&P 500 added +1% and NASDAQ advanced 1.7%.

The issue for markets and sentiment is … trade negotiations between the two countries ahead of a Dec. 15 deadline for a fresh round of U.S. tariffs on Chinese goods.

 

There’s much more room for profit-taking, but that doesn’t change my near-term view that the pain trade is a block away!

 

Decliners:

  • Alnylam Pharmaceuticals (ALNY -$0.42 after Wednesday’s -$1.50,Tuesday’s +$6.64 and Monday’s +$5.51);
  • Ionis Pharmaceuticals (IONS -$0.40);
  • uniQure NV (QURE -$0.37);
  • Voyager Therapeutics (VYGR -$0.17);
  • Caladrius Biosciences (CLBS -$0.17);

Incliners:

  • ReNeuron (RENE.L +$7.00);
  • Sage Therapeutics (SAGE +$3.87 after Wednesday’s +$0.71, Tuesday’s -$1.86 and Monday’s +$3.05);
  • CRISPR Therapeutics (CRSP +$3.54 after Wednesday’s -$0.65, Tuesday’s +$3.09 and Monday’s +$3.47 – post offering);
  • Editas Medicine (EDIT +$1.65 after Wednesday’s +$0.85 after Tuesday’s +$1.20);
  • bluebird bio (BLUE +$0.69 after Wednesday’s +$5.26);

 

The percentage (%) indicators:

  • Friday’s range of the 26 upside was +0.05% (ADVM) to +7.31% (KOOL) while the 15 downside ranged from -0.02% (ONCE) to -5.94% (CLBS); 

 

  • Thursday was a holiday;

 

  • Wednesday’s range of the 26 upside was +0.31% (BOLD) to +7.62% (MDXG) while the 13 downside ranged from -0.07% (QURE) to -1.96% (XON); 

 

  • Tues day’s range of the 23 upside was +0.06% (ONCE) to +13.79% (VSTM) while the 19 downside ranged from -0.06% (IONS) to -7.27% (XON); 

 

  • Monday’s range of the 34 upside was +0.01% (CLBS) to +11.58% (EDIT) while the 8 downside ranged from -0.03% (ONCE) to -6.79% (RENE.L); 

 

 

Upside volume stats:  to compare

  • Friday: 6 out of the 26 upside had higher than the 3 month average volume;
  • Thursday: markets were closed;
  • Wednesday: 8 out of the 26 upside had higher than the 3 month average volume;
  • Tuesday: 15 out of the 23 upside had higher than the 3 month average volume;

•     Monday: 12 out of the 34 upside had higher than the 3 month average volume;

Downside volume stats:

  • Friday: 2 out of the 15 downside had higher than the 3 month average volume;
  • Thursday: markets were closed;
  • Wednesday: 8 out of the 13 downside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 19 downside had higher than the 3 month average volume;
  • Monday: 7 out of the 8 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:

Friday closed POSITIVE with 15 decliners, 26 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday was a market holiday – Thanksgiving Day;

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

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

Monday closed POSITIVE with 8 decliners, 34 advancers, 0 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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

Thursday closed NEGATIVE with 21 decliners, 19 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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.