December 4, 2019 6:23pm

The second in a row of three (3) closes for the new month of December

Pre-open indications: 3 HITs and 2 MISS <SELL – CRISPR Therapeutics (CRSP -$1.03), ReNeuron (RENE.L -$6.00), uniQure NV (QURE +$1.46), bluebird bio (BLUE -$3.76) – “disposable strength”; BUY – Sage Therapeutics (SAGE -$0.57)>

Presenting alternative hypotheses clarifies material facts and evidence available to investors. “Devil’s Advocacy” also provides greater confidence that the current sector outlook will hold-up to close scrutiny!

 

The remainder of the month’s trading sessions will be critical for the RegMed sector which will establish whether today’s reaction is short-lived, or a forthcoming fundamental correction 

 

The Dow closed UP +146.97 points (+0.63%), the S&P closed UP +19.56 points (+0.63%) and the NASDAQ closed UP +46.03 points (+0.54%)

 

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

  • Wednesday the IBB closed up +1.25% while the XBI closed up +1.16%
  • Tuesday the IBB closed up +0.70% while the XBI closed up +1.36%
  • Monday the IBB closed down -1.20% while the XBI closed down -1.33%

 

The advance/decline line scenario of 45 covered companies:

  • Wednesday the close was positive with an A/D line of 24/13, 4 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 25/12, 4 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Monday the close was negative with an A/D line of 14/26, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

This morning’s post, “a ricochet or a rebound as tariff/trade rumors abound with increased volume drove yesterday’s capriciousness but, a positive close”

The sector slithered along with a positive index influence to produce a second positive close.

It’s machine driven volatility that’s enhancing share pricing – not too much but, enough to move the needle for profits to be reaped (the contrarian view which most usually ends factual)!

Stocks were boosted on Wednesday by the same rumor bandied that said the U.S. and China were edging closer to a trade deal, leading the major averages to snap a three-day slide.

 

After the ups and downs of November – do you as an investor … TRUST this market, I would NOT.

 

Decliners:

  • ReNeuron (RENE.L -$6.00);
  • Bluebird bio (BLUE -$3.76);
  • CRISPR Therapeutics (CRSP -$1.03);
  • Spark Therapeutics (ONCE -$0.90 after Tuesday’s -$0.41);
  • AxoGen (AXGN -$0.82);

Incliners:

  • Global Blood Therapeutics (GBT +$1.69);
  • uniQure NV (QURE +$1.46 after Tuesday’s +$9.14);
  • Ultragenyx (RARE +$1.07);
  • BioMarin Pharmaceuticals (BMRN +$1.06);
  • Ionis Pharmaceuticals (IONS +$0.82);

 

The percentage (%) indicators:

  • Wednesday’s range of the 24 upside was +0.29% (VCEL) to +9.03% (AGTC) while the 13 downside ranged from -0.14% (VYGR) to -4.84% (AXGN); 
  • Tuesday’s range of the 25 upside was +0.08% (BLCM) to +105.98% (BOLD) while the 12 downside ranged from -0.06% (NTLA) to -3.40% (ONVO); 
  • Monday’s range of the 14 upside was +0.14% (ONCE) to +9.92% (SLDB) while the 26 downside ranged from -0.11% (IONS) to -9.22% (FATE);

 

Upside volume stats:  to compare

  • Wednesday: 13 out of the 24 upside had higher than the 3 month average volume;
  • Tuesday: 16 out of the 25 upside had higher than the 3 month average volume;
  • Monday: 9 out of the 14 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 8 out of the 13 downside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 12 downside had higher than the 3 month average volume;
  • Monday: 12 out of the 26 downside had higher than the 3 month average volume;

 

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

 

December’s sessions:

Wednesday closed POSITIVE with 13 decliners, 25 advancers, 4 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed POSITIVE with 12 decliners, 25 advancers, 4 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGATIVE with 26 decliners, 19 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.