March 3, 2020 5:36pm
What versus who is trading this market, intra-day markets are all about electronic trading and algorithmic “rules”
4 HITs < (PSTI -$0.36), FATE (-$2.76), SAGE (-$2.06), VSTM (-$0.05)> and 2 MISS (ALNY -$3.36) and (SGMO -$0.25)>
It’s an honor to be considered the “canary in the (sectors) coal mine”! Insight is about understanding perception and is putting into context what is relevant to expectation fulfillment …
The Dow closed DOWN -785.91 points (-2.94%), the S&P closed DOWN -86.86 points (-2.86%) while the NASDAQ closed DOWN -268.08 points (-2.99%)
Indexes fell sharply in volatile trading on Tuesday as an emergency rate cut by the Fed failed to assuage concerns of slower economic growth due to the coronavirus outbreak.
- Traders had already priced in a rate cut of 50 basis points by this month’s policy meeting. Fed Chairman Powell noted the central bank was not prepared to use any additional tools to stimulate the economy aside from rate cuts.
- This may have disappointed some on Wall Street who were expecting something more from the central bank. <CNBC>
As I had stated, Monday’s rally was just a “technical snapback.”
Why catch a falling knife?
The panicked collapse of the last week isn’t something that will be quickly forgotten, and it will take a couple of weeks before stocks are on firmer ground.
Don’t forget, we are one-half way (1/2) through earnings (or LPS <loss-per-share>) season.
Too little, too soon – only a few Q4 and FY19 “numbers” to validate and substantiate the “forward motion” of pricing – think electronic trading and those algorithms to pursue their capacity of emotionless profit taking
Back to the virus update, “More than 89,000 coronavirus cases have been confirmed globally along with more than 3,000 deaths related to the virus.”
Bottom line, are we oversold …ENOUGH?
One more issue to dwell upon … fear and panic KEEP real investors on the sidelines from investing!
Have you heard of Albert Einstein’s definition of insanity? The one where he says it’s “doing the same thing over and over again and expecting different results?”
Staying in Monday’s and Tuesday’s pricing doghouse was:
- Global Blood Therapeutics (GBT +$2.25 after Friday’s +$2.81);
- Alnylam Pharmaceuticals (ALNY -$2.88 after Friday’s +$5.17);
- Ultragenyx (RARE -$2.82)
- Regenxbio (-$1.88)
Breaking out of the pricing decline were:
- ReNeuron (RENE.L +$5.00);
- Homology Medicine (FIXX +$2.81)
- Biostage (BSTG +$0.75);
- Voyager therapeutics (VYGR +$0.24);
- Intellia Therapeutics (NTLA +$0.08)
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed down -2.67% and XBI closed down -2.84%
- Monday, the IBB closed up +5.54% and XBI closed up +3.54%
- Friday the IBB closed UP +0.45% and XBI closed UP +1.73%
The advance/decline line scenario of 35 covered companies:
- Tuesday, the close was negative with an A/D line of 6/27, 2 flats of 35 covered;
- Monday, the close was positive with an A/D line of 24/11, 0 flat of 35 covered;
- Friday, the close was positive with an A/D line of 22/12, 1 flat of 35 covered;
Tuesday’s (low 5) Decliners:
- Global Blood Therapeutics (GBT -$4.92);
- Alnylam Pharmaceuticals (ALNY -$3.36 after Monday’s -$2.88 and Friday’s +$5.17);
- Ultragenyx (RARE -$2.82);
- Fate Therapeutics (FATE -$2.76 after Monday’s +$1.81) after earnings;
- bluebird bio (BLUE -$2.62);
Tuesday’s (high 5) Incliners:
- ReNeuron (RENE.L +$5.00 after Monday’s -$11.00 and Friday’s -$7.50);
- Homology Medicine (FIXX +$2.81);
- Biostage (BSTG -$0.75);
- Voyager Therapeutics (VYGR +$0.24);
- Intellia Therapeutics (NTLA +$0.08);
The percentage (%) indicators:
- Tuesday’s the range of the 6-upside was +0.60% (NTLA) to +18.52% (BSTG) while the 27-downside ranged from -0.04% (MESO) to -17.14% (PGEN);
- Monday’s the range of the 24-upside was +1.6% (ATHX) to +13.53% (SAGE) while the 11-downside ranged from -0.327% (ADRO) to -8.30% (RENE.L);
- Friday’s range of the 22-upside was +0.79% (CLBS) to +46.07% (VSTM) while the 12-downside ranged from -0.68% (QURE) to -11.25% (MESO);
Upside volume stats: to compare
- Tuesday: 4 out of the 6-upside had higher than the 3-month average volume;
- Monday: 12 out of the 24-upside had higher than the 3-month average volume;
- Friday: 16 out of the 22-upside had higher than the 3-month average volume;
Downside volume stats:
- Tuesday: 10 out of the 27-downside had higher than the 3-month average volume;
- Monday: 6 out of the 11-downside had higher than the 3-month average volume;
- Friday: 10 out of the 12-downside had higher than the 3-month average volume;
Volume movers top 4:
- Biostage (BSTG +$0.75 with 11,642 shares traded (3-month average =2,818 shares);
- Caladrius Biosciences (CLBS +$0.04 with 14.220 shares trade (3-month average = 29,190);
- Sangamo Therapeutics (SGMO -0.25) with 3.82 m shares traded (3-month average =1.941 M shares);
- Verastem Oncology (VSTM -$0.05) with 2.589 M shares traded (3-month average =2.549 m shares);
2 flat – ADRO and ATHX
Tuesday closed negative with 27 decliners, 6 advancers and 2 flats
Monday closed positive with 11 decliners, 24 advancers and 0 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.