February 28, 2020 5:28pm

Panic is not an investing strategy, it’s the aftermath

I make a commitment to provide need-to-know “facts in evidence” as equity’s volatility is one tactical signal for stocks.


The Dow closed DOWN -357.28 points (-1.39%), the S&P closed DOWN -24.54 points (-0.82%) while the NASDAQ closed UP +0.89 points (+0.01%)

 

Henry’omics:

Indexes dropped once again on Friday, as worries over the coronavirus and its impact on the economy continue to rattle investor sentiment.

For the week, the Dow fell more than 12% — its biggest weekly percentage loss since 2008. On a points basis, the Dow fell more than 3,500 points. It also ended the week in correction territory, down 14.1% from a record high set Feb. 12. The S&P 500 lost 11.5% week to date in its worst weekly performance since the crisis. The Nasdaq lost 10.5% this week and was nearly 13% below a record high. <CNBC>

The major averages were under pressure on Friday because investors kept adding to their bond-market exposure and fleeing equities.

  • The benchmark U.S. 10-year Treasury yield touched a fresh record low. It was last at 1.14%. Yields move inversely to prices.

The Cboe Volatility Index, also known as the fear gauge, hit a high of 49.48, its highest level since February 2018. It last traded around 40.

 

 

An earning’s beat or miss was wasted as the declines in the last sessions in the market and sector due to coronavirus. Many stocks end up losing ground despite ... their earning’s beat .

Today, the oversold algorithmic "catalyst" help a number of equities gain despite earning’s misses.

Momentum has been the widow maker of many equities in a portfolio

1+2+3+4 does NOT = 11; so who and what tacks-on the additional digit – a President (last man standing)  who killed the canary “squark”of reality and responsibility, the lawyers who lined and billed to their pockets delight or was it - the  Board of director members (BOD) who set-up their own “club” to control … forgetting the term, fiduciary responsibility … and the list goes-on - wasn’t that a song of exasperation or just another “etc, etcer

... The problem their falsifications will ... COME OUT sooner ... than later!

 

Stay with the same thematic, when you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

 

Staying in Friday, Thursday’s, Wednesday, Tuesday and Monday’s pricing doghouse were:

  • Regenxbio (RGNX);
  • Sage Therapeutics (SAGE);

 

Breaking out of the pricing decline were:

  • blue bird bio (BLUE +$5.55);
  • Alnylam Pharmaceuticals (ALNY +$5.17);
  • CRISPR Therapeutics (CRSP +$4.01);
  • Ultragenyx (RARE +$2.94);
  • Global Blood Therapeutics (GBT +$2.81);

 

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

  • Friday the IBB closed UP +0.45% and XBI closed UP +1.73%
  • Thursday the IBB closed DOWN -4.93% and XBI closed DOWN -3.96%
  • Wednesday the IBB closed UP +1.56% and XBI closed UP +0.49%
  • Tuesday the IBB closed down -3.04% and XBI closed down -2.83%
  • Monday, the IBB closed down -2.63% and XBI closed down -3.43%

 

The advance/decline line scenario of 35 covered companies:

  • Friday, the close was positive with an A/D line of 22/12, 1 flat of 35 covered;
  • Thursday, the close was negative with an A/D line of 2/33, 0 flat of 35 covered;
  • Wednesday, the close was negative with an A/D line of 17/ 18, 0 flat of 35 covered;
  • Tuesday, the close was negative with an A/D line of 4/31, 0 flat of 35 covered;
  • Monday, the close was negative with an A/D line of 5/30, 0 flat of 35 covered;

 

Friday’s Decliners:

  • ReNeuron (RENE.L -$7.50);
  • Sage therapeutics (SAGE -$5.01 after Thursday’s -$11.64);
  • Ionis Pharmaceuticals SAGE -$5.01);
  • Mesoblast (MESO -$0.90);
  • AxoGen (AXGN -$0.60);

 

Friday’s Incliners: blue bird bio (BLUE +$5.55);

  • bluebird bio (BLUE +$5.55);
  • Alnylam Pharmaceuticals (ALNY +$5.17);
  • CRISPR Therapeutics (CRSP +$4.01);
  • Ultragenyx (RARE +$2.94);
  • Global Blood Therapeutics (GBT +$2.81);

 

The percentage (%) indicators:

  • Friday’s range of the 22-upside was +0.79% (CLBS) to +46.07% (VSTM) while the 12-downside ranged from -0.68% (QURE) to -11.25% (MESO); 
  • Thursday’s range of the 2-upside was +0.30% (BSTG) to +1.20% (SLDB) while the 33-downside ranged from -0.08% (AXGN) to -18.29% (SAGE); 
  • Wednesday’s range of the 17-upside was +0.49% (PSTI) to +9.67% (BSTG) while the 18-downside ranged from -0.01% (BLUE) to -17.68% (BCLI); 
  • Tuesday’s range of the 4-upside was +0.51% (VYGR) to +15.97% (BCLI) while the 31-downside ranged from -0.98% (FATE) to -16.99% (AXGN); 
  • Monday’s the range of the 5-upside was +0.11% (BLCM) to +11.21% (BCLI) while the 30-downside ranged from -0.68% (AXGN) to -9.51% (CLLS); 

 

Upside volume stats:  to compare

  • Friday:16 out of the 22-upside had higher than the 3-month average volume;
  • Thursday: 0 out of the 2-upside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 17-upside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 4-upside had higher than the 3-month average volume;
  • Monday: 4 out of the 5-upside had higher than the 3-month average volume;

 

Downside volume stats:

  • Friday: 10 out of the 12-downside had higher than the 3-month average volume;
  • Thursday: 22 out of the 33-downside had higher than the 3-month average volume;
  • Wednesday: 4 out of the 18-downside had higher than the 3-month average volume;
  • Tuesday: 10 out of the 31-downside had higher than the 3-month average volume;
  • Monday: 10 out of the 30-downside had higher than the 3-month average volume;

 

1 flat - ATHX

 

February

Friday closed positive with 12 decliners, 22 advancers and 1 flat

Thursday closed negative with 33 decliners, 2 advancers and 0 flat

Wednesday closed negative with 18 decliners, 17 advancers and 0 flat

Tuesday closed negative with 31 decliners, 4 advancers and 0 flat

Monday closed negative with 30 decliners, 5 advancers and 0 flats

Friday vacation

Thursday vacation

Wednesday closed positive with 10 decliners, 25 advancers and 0 flat

Tuesday closed positive with 16 decliners, 18 advancers and 1 flat

Monday markets were closed for President’s Day holiday

Friday closed negative with 19 decliners, 14 advancers and 2 flats

Thursday closed negative with 20 decliners, 13 advancers and 2 flats

Wednesday closed positive with 8 decliners, 26 advancers and 1 flat

Tuesday closed positive with 12 decliners, 22 advancers and 1 flat

Monday closed positive with 6 decliners, 26 advancers and 3 flats

Friday closed negative with 26 decliners, 9 advancers and 0 flat

Thursday closed negative with 23 decliners, 12 advancers and 0 flat

Wednesday closed positive with 5 decliners, 27 advancers and 3 flats

Tuesday closed positive with 5 decliners, 30 advancers and 0 flats

Monday (2/3) closed positive with 8 decliners, 24 advancers and 3 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.