November 15, 2019 7:41pm

No easy riding this week but, the sector finally got a whiff of appreciation having exhaled

Pre-open indications: 6 Hits (cashing in on 3 buys and 3 sells into strength and pricing)

The week in review, the oversold were finally recognized …

It’s not hard to be right so often, it’s about refining expectation, defining insight and trusting your “gut” versus the machines or algorithms

 

Insight is about understanding perception and is putting into context what is relevant to expectation fulfillment …

 

The Dow closed UP +139.59 (+0.70%), the S&P closed up +18.38 points (+0.59%) and the NASDAQ closed UP +45.37 points (+0.54%)

 

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

  • Friday the IBB closed up +1.50% while the XBI closed up +1.34%
  • 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: 

  • Friday the close was positive with an A/D line of 26/13, 3 flats, 1 reversed merged (HSGX) and 2 acquired;

 

  • 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:

The sector fought the lack of sentiment as the machines and algorithms grinded the sector higher with the only real news of optimism of a trade deal.

The Dow notched its fourth week of consecutive gains, rising 1.2% in that time. The S&P 500 advanced 0.9% for the week, posting its sixth straight weekly gain. That’s the longest streak for the S&P 500 since 2017, when it climbed for eight straight weeks. The NASDAQ rose for a seventh consecutive week, advancing 0.8%.

Trade-sensitive names such as Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), CRISPER Therapeutics (CRSP) and bluebird bio (BLUE) while downside bias was weak with such as Ultragenyx (RARE), Verastem (VSTM) and Applied Genetic Technologies (AGTC).

From my “Data Docket”, retail sales grew by 0.3% in October, topping an estimate of 0.2%. However, the data also showed big-ticket purchases dropped last month.

 

We need another "ounce" of sentiment to stay high into next week's sessions untill ... we get overbought and skimmed for profit!

 

Decliners:

  • Ultragenyx (RARE -$0.70);
  • BioMarin Pharmaceuticals (BMRN -$0.54);
  • Intellia Therapeutics (NTLA -$0.23);
  • Voyager therapeutics (VYGR -$0.23);
  • Cellectis SA (CLLS -$0.16 after Thursday’s +$0.40);

Incliners:

  • Sage Therapeutics (SAGE +$5.53 after Thursday’s -$3.26);
  • Global Blood Therapeutics (GBT +$2.41 after Thursday’s -$1.49);
  • CRISPR Therapeutics (CRSP +$1.81);
  • Alnylam Pharmaceuticals (ALNY +$1.59);
  • bluebird bio (BLUE +$1.23 after Thursday’s -$3.04, Wednesday’s -$0.97, Tuesday’s +$3.29, Monday’s -$5.01 and last Friday’s +$2.02);

 

The percentage (%) indicators: 

  • Friday’s range of the 26 upside was +0.12% (BOLD) to +13.75% (ONVO) while the  13 downside ranged from -0.48% (SGMO) to -4.45% (VSTM);

 

  • 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

  • Friday: 8 out of the 26 upside had higher than the 3 month average volume;
  • 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:

  • Friday: 7 out of the 13 downside had higher than the 3 month average volume;
  • 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;

 

3 flat – BSTG, RENE.L and SGMO 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:

Friday closed POSITIVE with 13 decliners, 26 advancers, 3 flats and 2 acquired (AST & OSIR) and 1 reversed (HSGX);

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.