February 25, 2020 4:42pm

Get all the losses out of the way by week’s end to truly appreciate a sustainable upside

Indications: don’t sell into the decline but, the downslide is BUYABLE in some equities – even if early, so be aware of entry points!

I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks.

The Dow closed DOWN -879.44 points (-3.15%), the S&P closed DOWN – 97.68 points (-3.03%) while the NASDAQ closed DOWN -255.67 points (-2.77%)



Stocks continued their rout on Tuesday as diving equities raised more concern that the global economy is slowing because of the spreading coronavirus. A serious concern, the 10-year Treasury yield hit a record low as the Dow added to Monday’s 1,000-point drop.

The sector will rebound from the shock of the viral infection on the global economy but, the scare is a bit overdone; I think there is a risk-reward opportunity in “our” universe!

ALTHOUGH, Economist Mohamed El-Erian on Tuesday reiterated his call to resist automatically buying the dip after coronavirus-inspired stock-market selloffs.

  • El-Erian in a Feb. 2 guest column in the Financial Times said the spread of the coronavirus was likely to snap investors out of the buy-the-dip mentality that has proved highly profitable in the years since the global financial crisis. He argued that the impact of disease spread, subsequently named COVID-19, would pose a significant threat to global economic growth.

When will the sector respond in regard to macro valuation decreases – it’s a question of timing?

My view, we are experiencing technical and uncertainty opportunities.


“Volatility is normal,” said Art Hogan, chief market strategist at National Securities. “What’s scary about this particular drop from the all-time high is it has snuck up on us so quickly in a short period of time.”

Staying in today’s and yesterday’s pricing doghouse were:

  • bluebird bio (BLUE) –
  • Regenxbio (RGNX);
  • Ionis Pharmaceuticals (IONS);
  • uniQure NV (QURE);
  • Global Blood Therapeutics (GBT);
  • Vericel (VCEL);
  • Sage Therapeutics (SAGE);

Breaking out of the paddock were:

  • Brainstorm Cell Therapeutics (BCLI +$1.24);
  • ReNeuron (RENE.L +$2.00);
  • Biostage (BSTG +$0.11);
  • Voyager Therapeutics (VYGR +$0.06);


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

  • Tuesday the IBB closed down -3.04% and XBI closed down -2.83%
  • Monday, the IBB closed down -2.63% and XBI closed down -3.43%


The advance/decline line scenario of 35 covered companies:

  • Tuesday, the close was negative with an A/D line of 4/31, 0 flat of 35 covered;
  • Monday, the close was negative with an A/D line of 5/30, 0 flat of 35 covered;


Monday’s Decliners:

  • Alnylam Pharmaceuticals (ALNY -$8.74);
  • Global Blood Therapeutics (GBT -$5.72);
  • bluebird bio (BLUE -$3.95);
  • Ionis Pharmaceuticals (IONS -$3.39);
  • Regenxbio (RGNX -$2.44);

Tuesday’s Decliners:

  • uniQure NV (QURE -$3.85);
  • bluebird bio (BLUE -$3.54);
  • Alnylam Pharmaceuticals (ALNY -$3.00);
  • Regenxbio (RGNX -$2.71);
  • Sage Therapeutics (SAGE -$2.69);
  • Global Blood Therapeutics (GBT -$2.54);


Monday’s Incliners:

  • Brainstorm Cell Therapeutics (BCLI +$0.77);
  • ReNeuron (RENE.L +$7.00);
  • Aduro Biotechnologies (ADRO +$0.07);
  • BioLife Solutions (BLFS +$0.14);
  • Bellicum Pharmaceuticals (BLCM+$0.01);

Tuesday’s Incliners:

  • ReNeuron (RENE.L +$2.00);
  • Brainstorm Cell Therapeutics (BCLI +$1.24);
  • Biostage (BSTG +$0.10);
  • Voyager therapeutics (VYGR +$0.06);


The percentage (%) indicators:

  • Tuesday’s range of the 4-upside was +0.51% (VYGR) to +15.97% (BCLI) while the 31-downside ranged from -0.98% (FATE) to -16.99% (AXGN); 
  • Monday’s the range of the 5-upside was +0.11% (BLCM) to +11.21% (BCLI) while the 30-downside ranged from -0.68% (AXGN) to -9.51% (CLLS); 


Upside volume stats:  to compare

  • Tuesday: 2 out of the 4-upside had higher than the 3-month average volume;
  • Monday: 4 out of the 5-upside had higher than the 3-month average volume;


Downside volume stats:

  • Tuesday: 10 out of the 31-downside had higher than the 3-month average volume;
  • Monday: 10 out of the 30-downside had higher than the 3-month average volume;


0 flat  



Tuesday closed negative with 31 decliners, 4 advancers and 0 flat

Monday closed negative with 30 decliners, 5 advancers and 0 flats

Friday vacation

Thursday vacation

Wednesday closed positive with 10 decliners, 25 advancers and 0 flat

Tuesday closed positive with 16 decliners, 18 advancers and 1 flat

Monday markets were closed for President’s Day holiday

Friday closed negative with 19 decliners, 14 advancers and 2 flats

Thursday closed negative with 20 decliners, 13 advancers and 2 flats

Wednesday closed positive with 8 decliners, 26 advancers and 1 flat

Tuesday closed positive with 12 decliners, 22 advancers and 1 flat

Monday closed positive with 6 decliners, 26 advancers and 3 flats

Friday closed negative with 26 decliners, 9 advancers and 0 flat

Thursday closed negative with 23 decliners, 12 advancers and 0 flat

Wednesday closed positive with 5 decliners, 27 advancers and 3 flats

Tuesday closed positive with 5 decliners, 30 advancers and 0 flats

Monday (2/3) closed positive 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.