December 11, 2019 5:43pm

Navigate the edges of this market to build cash positions as sentiment is constantly mutable and evolving as algorithms “rule” and the progammed trading machines “whir”

Pre-open indications: 4 HITs <SAGE +$5.38), RENE.L (+$0.00) and SELLs into strength (BLUE +$1.28) and QURE (+$0.44)> and 0 MISS

It’s not hard to be right so often, it’s about refining expectation, defining insight and trusting your “gut” versus the machines or algorithms


 

I think Aristotle may have been the first to crystallize the fallacies (in writing at least) of many situations we are trying to deal with. Ad Verecundiam (Appeal to Authority) is certainly one fallacy, Ad Metum (Appeal to Fear) is the answer to the argument!

 

The Dow closed UP +29.58 points (+0.11%), the S&P closed UP +9.11 points (+0.29%) and the NASDAQ closed UP +37.87 points (+0.44%)

 

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

  • Wednesday the IBB closed down -0.62% while the XBI closed down -1.26%
  • Tuesday the IBB closed up +0.69% while the XBI closed up +1%
  • Monday the IBB closed down -0.62% while the XBI closed up +0.10%

 

The advance/decline line scenario of 45 covered companies:

  • Wednesday the close was negative with an A/D line of 13/27, 1 flat, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 22/17, 2 flats, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;
  • Monday the close was negative with an A/D line of 9/31, 1 flat, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;

 

Henry’omics:

Sector equities dumped ... after yesterday’s upside driven session that exhibited a reaction to acquisition speculation along with the looming U.S.-China trade deadline which inhibiting, I believe – long or even near-term share pricing positions.

From this morning’s pre-open post, “mind your Os - overbought and oversold, the flight of volatility and volume from value.”

Indexes closed slightly higher after the Fed indicated it will likely not raise rates in 2020, removing the fear among investors that they (the FED) would repeat a mistake made last year by tightening monetary policy prematurely and knocking the stock market.

Thus, the Fed kept interest rates unchanged, following three decreases in a row. The central bank also indicated it does not expect any policy changes through at least 2020.

 

Just when investors think they are in charge, think again, the “machines” program trading and their algorithms “rule” these markets!

 

Decliners:

  • Alnylam Pharmaceuticals (ALNY -$3.05);
  • CRISPER Therapeutics (CRSP -$1.98);
  • Ultragenyx (RARE -$1.53 after Tuesday’s +$0.97);
  • Regenxbio (RGNX -$1.29 after Tuesday’s -$0.95);
  • Ionis Pharmaceuticals (IONS -$1.22);

Incliners:

  • Sage Therapeutics (SAGE +$5.38);
  • Global Blood Therapeutics (GBT -+$2.50 after Tuesday’s +$0.84, Monday’s -$4.24, Friday’s +$3.20, Thursday’s +$1.97 and last Wednesday’s +$1.69);
  • Homology Medicine FIXX +$1.35 after Tuesday’s +$1.00);
  • bluebird bio (BLUE +$1.28 after Tuesday’s +$9.09);
  • Cellectis SA (CLLS +$0.66);

 

The percentage (%) indicators:

  • Wednesday’s range of the 13 upside was +0.26% (BCLI) to +40.72% (BLCM) while the 27 downside ranged from -0.12% (BOLD) to -7.52% (ADVM); 
  • Tuesday’s range of the 22 upside was +0.% () to +% () while the 17 downside ranged from -0.51% (BLCM) to -12.17% (SGMO); 
  • Monday’s range of the 9 upside was +0.12% (BOLD) to +41.33% (FATE) while the 31 downside ranged from -0.12% (ONVO) to -11.58% (SGMO); 

 

Upside volume stats:  to compare

  • Wednesday: 7 out of the 13 upside had higher than the 3 month average volume;
  • Tuesday: 10 out of the 22 upside had higher than the 3 month average volume;
  • Monday: 3 out of the 9 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 9 out of the 27 downside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 17 downside had higher than the 3 month average volume;
  • Monday: 13 out of the 31 downside had higher than the 3 month average volume;

 

1 flat – RENE.L 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 NEGATIVE with 13 decliners, 27 advancers, 1 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed POSITIVE with 17 decliners, 22 advancers, 2 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGATIVE with 31 decliners, 9 advancers, 1 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 9 decliners, 29 advancers, 3 flats, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed NEGATIVE with 31 decliners, 9 advancers, 1 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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.