October 23, 2018 6:39pm

From fugly to ugly, there was a liquidation of long positions with volume increases

The question is, will fundamentals return as a tool for an upside?

 

Pre-open indications: 6 HITs and 2 MISS (1 by pennies)

 

Who is defining the metrics for individual investors?

RMi’s daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined and evaluated.


I won’t apologize for being a “Devil’s Advocate” challenging views or consensus by building a better or possible case for an alternative explanation.

 

Daily analytics and metrics:

  • The Dow closed down -125.98 points or -0.50% to 25,191.43
  • The S&P closed down -15.19 points or -0.55% to 2,740.69
  • The NASDAQ closed down -31.09 points or -0.42% to 7,437.54

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 6/38 and 1 flat;
  • The mid-day was negative with an A/DL of 25/19 and 1 flat;
  • The close was negative with an A/DL of 21/23 and 1 flat;

 

Pre-open indications:

  • Alnylam Pharmaceuticals (ALNY) closed up +$1.65 – hit;
  • Athersys (ATHX) closed down -$0.05 – hit;
  • CRISPR Therapeutics (CRSP) closed down -$0.45 – hit;
  • Spark Therapeutics (ONCE) closed up +$0.71 – hit;
  • Sangamo Therapeutics (SAGE) closed up +$0.34 – hit;
  • Sage Therapeutics (SAGE) closed up +$4.80 – hit;
  • Verastem Oncology (VSTM) closed down -$0.04 – miss;
  • Intrexon (XON) closed down -$0.14 – miss;

 

Five (5) key metrics: 

… The greatest volume to the downside:  VSTM, BMRN, CRSP, GBT and XON

… Upside volume was weighted to:  HSGX, IONS, MDXG, SGMO and BLUE

… Leadership ($) to the downside: BMRN (-$3.29), SLDB (-$1.01), AXGN (-$0.940, CRSP (-$0.45) and NTLA (-$0.42)

… Best moves ($) to the upside:  SAGE (+$4.80), IONS (+$2.14), ALNY (+$1.65), BLUE (+$0.89) and FATE (+$0.81)

… The iShares NASDAQ Biotechnology (IBB) closed:

·         Tuesday was down -0.48% after NOT indicating in the pre-market;

·         Monday was down -1.44% after indicating a POSITIVE +0.01% in the pre-market;

·         Friday was down -1.58% after NOT indicating in the pre-market;

·         Thursday was down -1.47% after NOT indicating in the pre-market;

·         Wednesday was down -0.05% after indicating a NEGATIVE -0.11% in the pre-market;

·         Last Tuesday was up +4.23% after indicating a POSITIVE +0.85% in the pre-market;

 

Henry’omics:

Sector equities fell on Tuesday but, floated to near the top of the barrel as indexes managed to recover most of its losses later in the session as traders bought into the rotation while investors still shuttered in the aftermath – questioning whether or if it is totally over!

At its session lows, the Dow had fallen 548.62 points, while the S&P 500 and NASDAQ had lost more than 2% each.

The comeback was led by Sage therapeutics (SAGE +$4.80), Ionis Pharmaceuticals (IONS +$2.14) and Alnylam Pharmaceuticals (ALNY +$1.65).

Traders were waiting for the algorithms to “rule” and shorts to reach their prime pritability; investors should now more comfortable buying at these depreciated prices.

DON’T EXPECT that all is SAFE to enter the sector – WAIT and watch the open and the mid-day!

 

Weakness is STILL on display:

Review the range of the 21 upside from +$0.01 or +1.28% (CUR) to +$4.80 or +4.07% (SAGE) while the 23 downside ranges from -$0.0014 or -0.40% (KOOL) to -$3.29 or -3.18% (BMRN) with a 1 flat close (RENE.L).

Interesting stat: Volume INCREASED … look at the depth – 11 out of 21 of the upside had higher (than the 3 month average) volume while the downside experienced 11 having greater volume (than the 3 month average) out of 23.

 

From the pre-open newsletter, “will there be a resonance of life in the sector? Will a dead cat bounce; yesterday’s (10) upside showed some signs of life and will the “few and the lean” of the aftermarket indications actually spur some drive other than downside movement? Too many questions and few answers; if there’s a life in these dead stocks – check the pulse (SARCASM)!”

 

October sessions:

Tuesday closed NEGATIVE with 23 decliners, x21 advancers and 1 flat;

Monday closed NEGATIVE with 33 decliners, 11 advancers and 1 flat;

Friday closed NEGATIVE with 34 decliners, 8 advancers and 3 flat;

Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

Wednesday closed NEGATIVE with 25 decliners, 19 advancers and 1 flat;

Tuesday closed POSITIVE with 4 decliners, 39 advancers and 2 flats;

Monday closed NEGATIVE with 26 decliners, 17 advancers and 2 flats;

Friday closed POSITIVE with 9 decliners, 35 advancers and 1 flat;

Thursday closed NEGATIVE with 38 decliners, 7 advancers and 0 flat;

Wednesday closed NEGATIVE with 42 decliners, 2 advancers and 1 flat;

Tuesday closed NEGATIVE with 23 decliners, 18 advancers and 4 flats;

Monday closed NEGATIVE with 34 decliners, 10 advancers and 1 flat;

Friday closed NEGATIVE with 26 decliners, 17 advancers and 2 flat;

Thursday closed NEGATIVE with 35 decliners, 8 advancers and 2 flat;

Wednesday closed POSITIVE with 16 decliners, 27 advancers and 2 flat;

Tuesday closed NEGATIVE with 32 decliners, 12 advancers and 1 flat

Monday (10/1) closed NEGATIVE with 33 decliners, 13 advancers and 1 flat;

·         In 19 sessions in September – there were 10 negative closes and 9 positive close;

·         In 21 August sessions – 6 had negative and 15 had positive closes

 

 

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.