January 30, 2020 5:40pm

Markets have been mired all week by fears over the coronavirus and its toll on the global economy yet, markets came back from the abyss late afternoon

It's 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!  

 

Today’s tin could be tomorrow’s gold!


 

The Dow closed UP +124.98 points (+0.43%), the S&P closed UP +10.26 points (+0.31%) and the NASDAQ closed UP +23.77 points (+0.26%)

 

Henry’omics:

Indexes closed higher on Thursday after a sharp comeback late in the session erased earlier losses stemming from concerns around the coronavirus.

The Dow at its low for most of the session - down 244 points.

The S&P 500 and Dow are both down about 0.4% for the week while the Nasdaq has lost 0.2%. The Dow and S&P 500 were on pace for their first back-to-back weekly declines since a three-week slide that ended in early October. The Nasdaq has not logged in consecutive weekly declines since late September <CNBC>.

 

After the hop-scotch week, who is willing in their right mind to be LONG – the index boulders are weakening on “Sentiment Mountain”!

Where the canaries in the sector coal mine, am I the only one?

Does the accuracy of estimates, forecasts and “runways” really set you off – selling frenzies are on the horizon?

It’s also better to consider ticket execution in small doses in the forethcoming earnings’ quicksand ...

Thoughts to live by  when considering buying or selling: slow is smooth and smooth is fast!

 

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

  • Thursday the IBB closed down -1.70% and XBI closed down -1.18%
  • Wednesday the IBB closed down -0.08% and XBI closed down -0.21%
  • Tuesday the IBB closed up +1.23% and XBI closed up +1.67%
  • Monday the IBB closed down -0.79% and XBI closed down -0.64%

 

The advance/decline line scenario of 35 covered companies:

  • Thursday the close was negative with an A/D line of 4/31, 0 flat of 35 covered,
  • Wednesday the close was barely positive with an A/D line of 18/17, 0 flats of 35 covered,
  • Tuesday the close was negative with an A/D line of 20/12, 3 flats of 35 covered,
  • Monday the close was negative with an A/D line of 7/27, 1 flat of 35 covered,

 

Decliners:

  • uniQure (QURE -$2.56 after Wednesday’s +$0.70 and Tuesday’s -$0.53);
  • Alnylam Pharmaceuticals (ALNY -$2.48 after Wednesday’s +$3.21, Tuesday’s -$2.31, Monday’s -$2.97 and last Friday’s +$2.04);
  • Sage Therapeutics (SAGE -$1.85);
  • CRISPR Therapeutics (CRSP -$1.78 after Wednesday’s -$1.14, Tuesday’s +$1.75, Monday’s -$1.16, Friday’s -$1.8 and last Thursday’s -$3.00);
  • Ultragenyx (RARE -$1.58);

Incliners:

  • Homology Medicine (FIXX +$0.67);
  • Vericel (VCEL +$0.04);
  • MiMedx (MDXG -$0.04);
  • Pluristem (PSTI +$0.02);

 

The percentage (%) indicators:

  • Thursday’s range of the 4 upside was +0.24% (VCEL) to +4.37% (FIXX) while the 31 downside ranged from -0.63% (FATE) to -12.64% (AGTC); 
  • Wednesday’s range of the 18 upside was +0.33% (CLBS) to +2.80% (ALNY) while the 17 downside ranged from -0.06% (VCEL) to -5.41% (ADRO); 
  • Tuesday’s range of the 20 upside was +0.12% (CLLS) to +5.71% (ADRO) while the 12 downside ranged from -0.24% (BCLI) to -12.96% (BLCM); 
  • Monday’s range of the 7 upside was +0.55% (CLLS) to +6.22% (AGTC) while the 27 downside ranged from -0.56% (IONS) to -13.83% (BLCM); 

 

Upside volume stats:  to compare

  • Thursday: 2 out of the 4 upside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 18 upside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 20 upside had higher than the 3-month average volume;
  • Monday: 3 out of the 7 upside had higher than the 3-month average volume;

Downside volume stats:

  • Thursday: 7 out of the 31 downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 17 downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 12 downside had higher than the 3-month average volume;
  • Monday: 8 out of the 27 downside had higher than the 3-month average volume;

0 flat

 

January’s sessions of 35 covered companies:

Thursday closed NEGATIVE with 31 decliners, 4 advancers and 0 flat;

Wednesday closed POSITIVE with 17 decliners, 18 advancers and 0 flats;

Tuesday closed POSITIVE with 12 decliners, 20 advancers and 3 flats;

Monday closed NEGATIVE with 27 decliners, 7 advancers and 1 flat;

Friday closed NEGATIVE with 28 decliners, 7 advancers and 0 flat;

Thursday closed NEGATIVE with 21 decliners, 13 advancers and 1 flat;

Wednesday closed POSITIVE with 17 decliners, 18 advancers and 0 flat;

Tuesday closed NEGATIVE with 28 decliners, 5 advancers and 2 flat;

Monday markets were closed

Friday closed NEGATIVE with 20 decliners, 14 advancers and 1 flat;

Thursday closed POSITIVE with 15 decliners, 18 advancers and 2 flat3;

Wednesday closed POSITIVE with 14 decliners, 20 advancers and 1 flat;

Tuesday closed POSITIVE with 7 decliners, 28 advancers and 1 flat;

Thursday closed POSITIVE with 12 decliners, 22 advancers and 1 flat;

Wednesday closed POSITIVE with 10 decliners, 23 advancers and 2 flats;

Tuesday closed POSITIVE with 15 decliners, 22 advancers and 0 flat;

Monday closed POSITIVE with 13 decliners, 22 advancers and 0 flat;

Friday closed NEGATIVE with 19 decliners, 15 advancers and 1 flat;

Thursday closed NEGATIVE with 18 decliners, 15 advancers and 2 flats;

Wednesday markets were closed;

 

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.