March 6, 2020 9:38pm
Fear ruled the Friday’s session only modulated by Larry Kudlow’s optimistic message
Pre-open indications: 5 HITs < (BCLI +$0.93), (NTLA -$0.78), RENE.L (-$3.00), (GBT -$1.50), (CLBS -$0.00)> and 1 MISS < (EDIT -$1.18),
The week’s numbers in review …
Short-term investment is always about a SELL/BUY moment in time; in the near and long-term, it will be a process which doesn’t always earn a ROI.
The Dow closed DOWN -265.5 points (-0.98%), the S&P closed DOWN -51.57 points (-1.71%) while the NASDAQ closed DOWN -162.98 points (-1.87%)
Indexes fell on Friday, capping a roller-coaster week, as the coronavirus outbreak kept investors on edge.
All three major averages eked out small weekly gains after a wild week that saw the Dow swing 1,000 points or higher twice. The Dow was up 1.7% on the week, while the S&P 500 expanded +0.6% and the Nasdaq gained +0.1%.
However, the benchmarks are still in correction territory, down at least 10% from their recent peaks.
From my data docket this a.m., the U.S. economy added 273,000 jobs in February, beating expectations of 175,000 new payrolls. The unemployment rate also fell back to 3.5%, matching its lowest level in more than 50 years.
The Trump administration is rushing to head off a panic over the pain that a coronavirus epidemic could inflict on the economy as whipsawing financial markets tumbled again on Friday. It’s part of a tightrope act by the country’s leaders to avoid causing alarm, while also offering reassurances that they will shield the economy from a potential recession if the situation worsens. <Politico>
Top administration officials, under growing pressure to act, are dismissing the need for immediate, broad-based measures to shore up the economy but have begun suggesting that a smaller-scale response might be necessary.
This week in two (2) sessions, stocks moved from surge to slump as investor battled the oversold versus the overbought hope!
The size of the volatility outbreak is directly a function of fear, pessimism and share pricing declines brought forth by electronic and algorithmic trading which hung around the psychosis which had preceded it
There are still … outlandish low share pricings that have got even lower today as the cell and gene therapy biotech sector along with the Nasdaq took big hits again in Friday’s session.
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Friday, the IBB closed down -1.53% and XBI closed down -2.50%
- Thursday, the IBB closed down -2.12% and XBI closed down -1.59%
- Wednesday, the IBB closed up +4.69% and XBI closed up +4.70%
- 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%
The advance/decline line scenario of 35 covered companies:
- Friday, the close was negative with an A/D line of 6/29, 2 flats of 35 covered;
- Thursday, the close was negative with an A/D line of 11/24, 0 flats of 35 covered;
- Wednesday, the close was positive with an A/D line of 30/3, 2 flats of 35 covered;
- Tuesday, the close was negative with an A/D line of 7/26, 2 flats of 35 covered;
- Monday, the close was positive with an A/D line of 24/11, 0 flat of 35 covered;
Friday’s (only 4) incliners:
- Ionis Pharmaceuticals (IONS +$0.96 after Thursday’s -$1.67 and Wednesday’s +$3.87);
- Brainstorm Cell Therapy (BCLI +$0.93 after Thursday’s +$0.66);
- Verastem Oncology (VSTM+$0.340;
- Solid Biosciences (SLDB +$0.07);
Friday’s (lowest 5) decliners:
- bluebird bio (BLUE -$3.84 after Thursday’s -$1.01);
- Ultragenyx (RARE -$3.70 after Thursday’s -$2.08);
- Alnylam Pharmaceuticals (ALNY -$3.52);
- uniQure NV (QURE -$3.45 after Thursday’s +$2.00);
- ReNeuron (-$3.00 after Thursday’s -$11.50);
The percentage (%) indicators:
- Friday’s the range of the 4-upside was +1.81% (IONS) to +12.2% (BCLI) while the 29-downside ranged from -0.50% (BLFS) to -10.68% (ADVM);
- Thursday’s the range of the 11-upside was +0.25% (BSTG) to +9.48% (BCLI) while the 24-downside ranged from -0.11% (BLCM) to -9.09% (RENE.L);
- Wednesday’s the range of the 30-upside was +0.31% (SLDB) to +9.85% (GBT) while the 3-downside ranged from -0.42% (CLBS) to -17.7% (BSTG);
- Tuesday’s the range of the 7-upside was +0.60% (NTLA) to +18.52% (BSTG) while the 26-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);
Upside volume stats: to compare
- Friday: 3 out of the 4-upside had higher than the 3-month average volume;
- Thursday: 4 out of the 11-upside had higher than the 3-month average volume;
- Wednesday: 5 out of the 30-upside had higher than the 3-month average volume;
- Tuesday: 4 out of the 7-upside had higher than the 3-month average volume;
- Monday: 12 out of the 24-upside had higher than the 3-month average volume;
Downside volume stats:
- Friday: 13 out of the 29-downside had higher than the 3-month average volume;
- Thursday: 5 out of the 24-downside had higher than the 3-month average volume;
- Wednesday: 2 out of the 3-downside had higher than the 3-month average volume;
- Tuesday: 10 out of the 26-downside had higher than the 3-month average volume;
- Monday: 6 out of the 11-downside had higher than the 3-month average volume;
- Verastem Oncology (VSTM +$0.34 with 5.77 M shares traded after Thursday’s +$0.07 with 2.247 M shares traded and Wednesday’s +$0.04 with 2.408 M shares traded (3-month average = 2.53 M shares);
- Sangamo Therapeutics (SGMO -$0.28 with 5.337 M shares traded after Thursday’s +$0.40 with 5.225 M shares traded and Wednesday’s -$0.12 with 3.615 M shares traded (3-month average = 2.048 M shares);
2 flat - CLBS and MDXG
Friday closed negative with 29 decliners, 4 advancers and 2 flats
Thursday closed negative with 24 decliners, 11 advancers and 2 flats
Wednesday closed positive with 3 decliners, 30 advancers and 2 flats
Tuesday closed negative with 26 decliners, 7 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.