December 17, 2019 5:26pm

Strength was sold into as the overbought reversed to the oversold with moderate volume

It’s a question of the levels of share pricing risks that are acceptable

Pre-open indications: 6 HITs and 0 MISS <BMRN (-$0.12), IONS (-$1.34) and RENE.L (-$15.00), PSTI (+0.49), ONCE (+$0.00) and MESO (+$0.45)>

It's not such a daunting task to understand risk, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!  

 

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

 

The Dow closed UP +28.89 points (+0.10%), the S&P closed UP +1.07 points (+0.03%) and the NASDAQ closed UP +9.13 points (+0.10%)

 

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

  • Tuesday the IBB closed down -0.62% and the XBI closed down -0.07%
  • Monday the IBB closed up +1.04% while and XBI closed up +1.18%
  • Friday the IBB closed up +0.34% and the XBI closed up +0.54%

 

The advance/decline line scenario of 45 covered companies:

  • Tuesday the close was negative with an A/D line of 16/22, 1 flat, 2 reversed merged (HSGX & ONVO), 2 dropped (BTX and CUR) and 2 acquired;
  • Monday the close was positive with an A/D line of 13/25, 1 flat, 2 reversed merged (HSGX & ONVO), 2 dropped (BTX and CUR) and 2 acquired;
  • Friday the close was negative with an A/D line of 16/24, 1 flat, 1 reversed merged (HSGX), 1 dropped (BTX) and 2 acquired;

 

Henry’omics:

Indexes closed just above the flat line +3% to +10% higher while the sector slumped as electronic trading skimmed any profit from the previous sessions high.

But for the time being, the temporary resolution to the U.S. - China trade war clears the path for stocks to keep moving higher in what has already been a banner year on Wall Street <CNBC>.

From my “Data Docket” posting,  U.S. housing starts rose more than expected in November as building permits surged to a 12½-year high.

 

As I stated, “Love the upside moves on market’s momentum; however, the “machines” – electronic trading and algorithms will be stalking the upside moves – skim and slim!”

Right yet again, my contrarian views plays out but, never forget – I am a sector advocate!

 

Decliners:

  • ReNeuron (RENE. L -$15.00 after Monday’s +$15.00);
  • Alnylam Pharmaceuticals (ALNY -$3.57 after Monday’s +$2.38,  Friday’s -$2.87, Thursday’s +$1.82 and last Wednesday’s -$3.05);
  • uniQure (QURE -$1.39 after Monday’s -$0.60, Friday’s +$5.09 and Thursday’s +$3.45);
  • Ionis Pharmaceuticals (IONS -$1.34 after Monday’s+$2.22 and Friday’s +$0.83);
  • Regenxbio (RGNX -$1.01);

Incliners:

  • bluebird bio (BLUE +$3.59);
  • Cellectis SA (CLLS +$2.39 after Monday’s -$0.31);
  • Ultragenyx (RARE +$0.67);
  • Mesoblast (MESO +$0.65);
  • Pluristem (PSTI +$0.49)

 

The percentage (%) indicators:

  • Tuesday’s range of the 16 upside was +0.03% (VCEL) to +15.28% (CLLS) while the 22 downside ranged from -0.14% (BMRN) to -10.91% (RENE.L); 
  • Monday’s range of the 25 upside was +0.57% (MDXG) to +13.66% (BLCM) while the 13 downside ranged from -0.08% (BOLD) to -3.94% (SAGE); 

 

Upside volume stats:  to compare

  • Tuesday: 7 out of the 16 upside had higher than the 3 month average volume;
  • Monday: 14 out of the 25 upside had higher than the 3 month average volume;
  • Friday: 7 out of the 16 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 9 out of the 22 downside had higher than the 3 month average volume;
  • Monday: 9 out of the 13 downside had higher than the 3 month average volume;
  • Friday: 7 out of the 24 downside had higher than the 3 month average volume;

 

1 flat – ONCE.

 

December’s sessions:

Tuesday closed NEGATIVE with 22 decliners, 16 advancers, 1 flat, 2 dropped (BTX & CUR) and 2 acquired (AST & OSIR) and 2 reversed (HSGX & ONVO);

Monday closed POSITIVE with 13 decliners, 25 advancers, 1 flat, 2 dropped (BTX & CUR) and 2 acquired (AST & OSIR) and 2 reversed (HSGX & ONVO);

Friday closed NEGATIVE with 24 decliners, 16 advancers, 1 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed POSITIVE with 14 decliners, 27 advancers, 0 flat, 1 dropped (BTX) and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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.