February 3, 2020 6:02pm
We are still not out of the valley of viral worries as Q4 results could be as infecting the sector
Pre-open indications: 7 HITs <PSTI (+0.22), RGNX (+$1.96), MESO (+$0.14), VCEL (+$0.47), CRSP (+$0.76), GBT (+$0.56) and BLUE (+$7.63)> and 0 MISS
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!
The Dow closed UP +143.78 points (+0.51%), the S&P closed UP +23.40 points (+0.73%) and the NASDAQ closed UP +122.47 points (+1.34%)
Indexes rose solidly on Monday, recovering some of the losses from the previous session’s steep sell-off, but investors remained wary about the bounce as coronavirus fears lingered.
From my “Data Docket”, the Institute for Supply Management said its manufacturing gauge showed activity in the sector expanded.
Investors are buying the dip after the Nasdaq recorded its worst start to a trading year since 2016.
I’d be … limiting my exposure to cell and gene therapy companies until after we have “grabbled” with Q4 earnings results, forecasts and estimates.
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday the IBB closed up+1.77% and XBI closed up +2.24%
- Friday the IBB closed down -1.73% and XBI closed down -1.26%
The advance/decline line scenario of 35 covered companies:
- Monday the close was positive with an A/D line of 24/8, 3 flats of 35 covered,
- Friday the close was negative with an A/D line of 5/29, 1 flat of 35 covered,
- ReNeuron (RENE.L -$7.50 after Friday’s -$8.50);
- Intrexon (XON -0.20);
- Applied Genetic Technologies (AGTC -$0.19);
- MiMedx (MDXG -$0.15);
- Alnylam Pharmaceuticals (ALNY -$0.13);
- bluebird bio (BLUE +$7.63 after Friday’s -$2.55);
- uniQure (QURE +$2.94 after Friday’s -$1.76, Thursday’s -$2.56, Wednesday’s +$0.70 and last Tuesday’s -$0.53);
- Regenxbio (RGNX +$1.96);
- Fate therapeutics (FATE +$1.76);
- Ultragenyx (RARE +$1.31);
The percentage (%) indicators:
- Monday’s range of the 24 upside was +0.21% (IONS) to +11.48% (BLCM) while the 8 downside ranged from -0.13% (ALNY) to -5.17% (RENE.L);
- Friday’s range of the 5 upside was +1.24% (BCLI) to +24.44% (ADRO) while the 29 downside ranged from -0.18% (VYGR) to -8.27% (BLCM);
Upside volume stats: to compare
- Monday: 4 out of the 24 upside had higher than the 3-month average volume;
- Friday: 2 out of the 5 upside had higher than the 3-month average volume;
Downside volume stats:
- Monday: 1 out of the 8 downside had higher than the 3-month average volume;
- Friday: 5 out of the 29 downside had higher than the 3-month average volume;
3 flats – ATHX, BSTG and VSTM
Monday (2/3) closed with 8 decliners, 24 advancers and 3 flats
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.