January 21, 2020 7:01pm

Sentiment across global markets had taken a hit overnight amid concerns about the virus

Pre-open indications: 4 HITs < (AGTC +$0.01), RENE.L +$9.00) sold into profit/strength (ATHX +$0.01), (MESO +$0.11) and 1 MISS < (GBT -$1.69)>

Welcome to my world of defining the “grey’ in my "covered" universe!


 

The Dow closed DOWN -152.06 points (-0.52%), the S&P closed DOWN -8.83 points (-0.27%) and the NASDAQ closed DOWN -18.14 points (-0.19%)

 

Henry’omics:

Indexes pulled back from record levels on Tuesday after the Centers for Disease Control stated that a traveler from China was diagnosed with the first U.S. case of coronavirus in Seattle.

The NASDAQ posted its first loss in four sessions.

Tuesday’s declines parsed after Friday’s decline after a seven (7) session run to the upside following U.S. markets being closed Monday due to the Martin Luther King Jr. holiday.

From this morning’s “Data Docket”, the International Monetary Fund (IMF) on Monday downgraded its global economic growth forecast from 3.4% to 3.3% for 2020. The U.S. economy is projected to grow by 2% this year, a downward revision of 0.1% percentage points compared with the IMF’s October 2019 forecast.

Sentiment on Tuesday also soured slightly after Treasury Secretary Steven Mnuchin told The Wall Street Journal that a phase two trade deal between China and the U.S. may not remove all existing tariffs. “We may do 2A and some of the tariffs come off. We can do this sequentially along the way,” he said <CNBC>.

 

If you believe you are right about an equity, stand-up by hanging on however evaluate the risk of the next multiple moves!

 

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

  • Tuesday the IBB closed down -1.17% and XBI closed down -1.56%
  • Monday markets were closed
  • Friday the IBB closed down -0.46% and XBI closed down -0.81%

 

The advance/decline line scenario of 35 covered companies:

  • Tuesday the close was negative with an A/D line of 5/28, 2 flat of 35 covered,
  • Monday markets were closed,
  • Friday the close was negative with an A/D line of 14/20, 1 flat of 35 covered,

 

Decliners:

  • uniQure (QURE -$5.36);
  • Sage therapeutics (SAGE -$3.13);
  • bluebird bio (BLUE -$2.22);
  • Regenxbio (RGNX -$1.93);
  • Global Blood Therapeutics (GBT -$1.69 after Friday’s -$3.44, Thursday’s +$1.52, Wednesday’s +$1.65, Tuesday’s +$3.08 and last Monday’s-$2.17);
  • AxoGen (AXGN -$1.28);

Incliners:

  • ReNeuron (RENE.L +$9.00 after Friday’s +$9.50);
  • Mesoblast (MESO +$0.11 after Friday’s +$1.14);
  • Applied Genetic Technologies (AGTC +$0.09);
  • Athersys (ATHX -$0.01);
  • Aduro BioTech (ADRO +$0.01);

 

The percentage (%) indicators:

  • Tuesday’s range of the 5 upside was +0.71% (ADRO) to +5.96% (RENE.L) while the 28 downside ranged from -0.18% (IONS) to -8.94% (AXGN); 
  • Monday markets were closed;
  • Friday’s range of the 14 upside was +0.17% (ADVM) to +13.72% (MESO) while the 20 downside ranged from -0.44% (ALNY) to -11.85% (BSTG); 

 

Upside volume stats:  to compare

  • Tuesday: 2 out of the 5 upside had higher than the 3 month average volume;
  • Monday markets were closed;
  • Friday: 10 out of the 14 upside had higher than the 3 month average volume;

Downside volume stats:

  • Tuesday: 12 out of the 28 downside had higher than the 3 month average volume;
  • Monday markets were closed;
  • Friday: 13 out of the 20 downside had higher than the 3 month average volume;

 

2 flat – BSTG & MDXG

 

January’s sessions of 35 covered companies:

Tuesday closed NEGATIVE with 28 decliners, 5 advancers and 2 flat;

Monday markets were closed

Friday closed NEGATIVE with 20 decliners, 14 advancers and 1 flat;

Thursday closed POSITIVE with 15 decliners, 18 advancers and 2 flat3;

Wednesday closed POSITIVE with 14 decliners, 20 advancers and 1 flat;

Tuesday closed POSITIVE with 7 decliners, 28 advancers and 1 flat;

Thursday closed POSITIVE with 12 decliners, 22 advancers and 1 flat;

Wednesday closed POSITIVE with 10 decliners, 23 advancers and 2 flats;

Tuesday closed POSITIVE with 15 decliners, 22 advancers and 0 flat;

Monday closed POSITIVE with 13 decliners, 22 advancers and 0 flat;

Friday closed NEGATIVE with 19 decliners, 15 advancers and 1 flat;

Thursday closed NEGATIVE with 18 decliners, 15 advancers and 2 flats;

Wednesday markets were closed;

 

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.