September 5, 2019 7:15am

Back from the bottom with low volume

News: uniQure (QURE) proposes $200 M offering closing at $55.98, watch for the decline, be ready for decline

The 6 W’s: Who, what, where, when, why and what of it … the real question is … next in a volatile market!

 

We crave explanations because they give us an illusion of control. The philosopher Friedrich Nietzsche once observed that "any explanation is better than none."

 

Markets and indexes:

  • The Dow closed up +237.45 points or +0.91% to 26,355.47;
  • The S&P closed up +31.51 points or +1.08% at 2,937.78;
  • The NASDAQ was up +102.72 or -1.30% to 7,976.88;

 

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

  • Wednesday the IBB closed up +0.06% while the XBI also closed up +0.51%
  • Tuesday the IBB closed down -1.67% while the XBI also closed down -1.81%
  • Monday was a holiday

 

Henry’omics:

Late, due to computer issues yet, an early riser to continually spread the message!

Hong Kong leader Carrie Lam said that she will withdraw a contentious extradition bill that has sparked months of mass protests. The Hang Seng index in Hong Kong soared around 4% on reports overnight that the withdrawal of the bill was imminent. The iShares MSCI Hong Kong ETF (EWH) gained 4.5% and posted its biggest one-day rise since Sept. 8, 2015 when it rose 5.4% <CNBC>.

  • The bill’s withdrawal is seen as a positive because protest escalation was seen as a potential disruptor to the global economy. Some investors feared the protests could hinder U.S.-China trade talks.

 

As I had stated, “Investors need to think about their buying pace and anticipate encountering resistance.”

 

The advance/decline line scenario of 45 covered companies:  

  • Wednesday the close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;
  • Tuesday the close was negative with an A/D Line of 12/29 and 2 flats and 2 acquired;
  • Monday was a holiday;

 

Decliners:

  • Ultragenyx (RARE -$6.23 after Tuesday’s -$3.18);
  • ReNeuron (RENE.L -$4.99 after Tuesday’s -$7.50 another what did you expect after Friday’s +$26.00);
  • bluebird bio (BLUE -0.77 after Tuesday’s -$2.49 – always a target after highs;
  • Editas Medicine (EDIT -$0.69);
  • BioMarin Pharmaceuticals (BMRN -$0.57 after Tuesday’s -$1.75, what did you expect after Friday’s +$0.45, Thursday’s +$0.92 and last Wednesday’s -$0.99);

Incliners:

  • Sage Therapeutics (SAGE +$1.60 after Tuesday’s-$10.88; what did you expect after Friday’s+$0.81;
  • Global Blood Therapeutics (GBT +$1.60);
  • Adverum (ADVM +$0.96);
  • Solid Biosciences (SLDB +$0.68 after Tuesday’s +$0.22);
  • CRISPR Therapeutics (CRSP +$0.66)

 

The percentage (%) indicators: 

  • Wednesday’s range of the 22 upside was +0.21% (IONS) to +9.24% (ADVM) while the 20 downside ranged from -0.10% (SGMO) to -12.15% (RARE);
  • Tuesday’s range of the 12 upside was +0.48% (FIXX) to +8.62% (HSGX) while the 29 downside ranged from -0.20% (GBT) to -7.08% (BTX);
  • Monday markets were closed;

 

Upside volume stats:  to compare

  • Wednesday: 2 out of the 22 upside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 12 upside had higher than the 3 month average volume;
  • Monday was Labor Day;

Downside volume stats:

  • Wednesday: 7 out of the 20 downside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 29 downside had higher than the 3 month average volume;
  • Monday markets were closed; 

1 flat – MDXG with 2 acquired (AST & OSIR) with the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed (SEPTEMBER?)

 

September’s sessions:

Wednesday closed POSITIVE with 20 decliners, 22 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 29 decliners, 12 advancers, 2 flats and 2 acquired (AST & OSIR);

Monday was Labor Day

 

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.