November 14, 2019 6:00pm

Zombie equities is my sentiment term for a sector considered to lack vitality, interest and volume pulse

 “Venimus nos emit et vendidit nos rursus” – “We have bought and sold again". That's why today's not a good day… again for all who owned cell and gene therapy equities 

 

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector act like it’s their blueprint. Stocks have lately been alternating between the horrific and the benign.

 

The Dow closed DOWN -1.63 (-0.01%), the S&P closed up +2.59 points (+0.08%) and the NASDAQ closed DOWN -3.08 points (-0.04%)

 

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

  • Thursday the IBB closed down -0.72% while the XBI closed down -0.59%
  • Wednesday the IBB closed up +0.20% while the XBI closed up +0.27%
  • Tuesday the IBB closed up +0.34% while the XBI closed up +0.28%
  • Monday the IBB closed down -0.32% while the XBI closed down -0.27%

 

The advance/decline line scenario of 45 covered companies: 

  • Thursday the close was negative with an A/D line of 17/25, 0 flat, 1 reversed merged (HSGX) and 2 acquired;

 

  • Wednesday the close was negative with an A/D line of 12/29, 1 flat, 1 reversed merged (HSGX) and 2 acquired;

 

  • Tuesday the close was negative with an A/D line of 19/23, 0 flat, 1 reversed merged (HSGX) and 2 acquired;

 

  • Monday the close was negative with an A/D line of 14/27, 1 flats, 1 reversed merged (HSGX) and 2 acquired;

                                                    

Henry’omics:

It’s been a BAD week for the cell and gene therapy sector; as I have stated and continue to reiterate “sentiment was burned at the stake and it’s still scorching”!

Reason, the risk appetite of investors as traders are preying upon the weak!

From my morning’s “Data Docket”, weekly jobless claims reached 225,000 last week, their highest level since June. Meanwhile, U.S. producer prices had their biggest gain in six months in October.

 

With and after all the downside, it COULD be an upside session on the horizon - Friday for the GROSSLY oversold which should be recognized by the "machines" and algorithms!

 

Decliners:

  • ReNeuron (RENE.L -$4.00);
  • Sage Therapeutics (SAGE -$3.26);
  • bluebird bio (BLUE -$3.04 after Wednesday’s -$0.97, Tuesday’s +$3.29, Monday’s -$5.01, Friday’s +$2.02 and last Thursday’s -$2.04);
  • Global Blood Therapeutics (GBT -$1.49);
  • Audentes therapeutics (BOLD -$1.27);

Incliners:

  • Homology Medicine (FIXX +$1.24);
  • Cellectis SA (CLLS +$0.40);
  • AxoGen (AXGN +$0.37);
  • ThermoGenesis Holdings  <formerly Cesca therapeutics> (KOOL +$0.35);
  • Ionis Pharmaceuticals (IONS +$0.16);

 

The percentage (%) indicators: 

  • Thursday’s range of the 17 upside was +0.11% (CRSP) to +12.63% (BLCM) while the  25 downside ranged from -0.11% (STML) to -16.94% (CUR);

 

  • Wednesday’s range of the 12 upside was +0.09% (EDIT) to +7.31% (KOOL +0.39) while the  29 downside ranged from -0.01% (RENE.L) to -16.94% (CUR);

 

  • Tuesday’s range of the 19 upside was +0.07% (FATE) to +9.47% (EDIT) while the  23 downside ranged from -0.77% (BCLI) to -74.36% (SLDB -$8.18);

 

  • Monday’s range of the 14 upside was +0.07% (AXGN) to +7.31% (KOOL) while the  27 downside ranged from -0.17% (ONCE) to -16.94% (CUR);

 

Upside volume stats:  to compare

  • Thursday: 4 out of the 17 upside had higher than the 3 month average volume;
  • Wednesday: 0 out of the 12 upside had higher than the 3 month average volume;
  • Tuesday: 8 out of the 19 upside had higher than the 3 month average volume;
  • Monday: 1 out of the 14 upside had higher than the 3 month average volume;

Downside volume stats:

  • Thursday: 5 out of the 25 downside had higher than the 3 month average volume;
  • Wednesday: 0 out of the 29 downside had higher than the 3 month average volume;
  • Tuesday: 9 out of the 23 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 27 downside had higher than the 3 month average volume;

 

0 flat with 1 reverse merged (HSGX), 2 acquired (AST & OSIR) and Spark Therapeutics’ (ONCE) acquisition by Roche could be soon according to rumors from FTC by year’s end.

 

November’s sessions:

Thursday closed NEGATIVE with 25 decliners, 17 advancers, 0 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Wednesday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed NEGATIVE with 29 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGAIVE with 27 decliners, 14 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 11 decliners, 29 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Thursday closed POSITIVE with 18 decliners, 21 advancers, 3 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Wednesday closed NEGATIVE with 27 decliners, 13 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Tuesday closed POSITIVE with 17 decliners, 23 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Monday closed NEGATIVE with19 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

Friday closed POSITIVE with 7 decliners, 33 advancers, 2 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

 

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.