Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: the oversold were recognized although volume was weak and breathe thin

May 21, 2019 7:21pm

The 8 downside was weak -$0.30 from -$0.0016 while the 31 upside ranged $0.008 to $10.00 and 4 flats out of 45 covered

Pre-open indications: 6 HITs and 0 MISS

It’s not hard to be right so often, it’s about refining expectation, defining insight and NOT being indentured to ANY financial institution! That’s why my “quantamental” blend of the two styles has become common parlance among investors and traders.

Should have been a subscriber, you would be reading this now and be ready for Wednesday!

RMi outlines the potential prelude to the daily dosage of facts and objectivity!

Markets and indexes:

The Dow closed up +197.43 points or +0.77% to 25,877.33
The S&P closed up +24.13 points or +0.85% at 2,864.36
The NASDAQ was up +83.35 points or +1.08% to 7,785.72

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Henry’omics:

What did investors expect from the oversold and downtrodden?

Sector equities and markets closed higher on Tuesday following news that the U.S. temporarily eased restrictions on Chinese telecom giant Huawei.

The Commerce Department would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until Aug. 19. The move sought to minimize disruption for the telecom company’s customers around the world. The initial restrictions worried investors that the ongoing U.S.-China trade war was intensifying.

“It’s hard for the market to go a lot higher until we get some resolution on trade. But it’s hard for the market to go a lot lower because the fundamentals are there,” Pence said. “Right now, the world is negotiating via headline. That’s going to move the market, but the market is not going to stay wherever it moves because reality always catches up to headlines sooner or later.”<CNBC>

Pre-open post, “Beyond trade relief headlines, where is sector news? Cross currents abate; the wind is finally at our back for how long (?) while Peloton Therapeutics about to IPO gets acquisition offer by Merck. As I stated last night “think Tuesday and Wednesday, after every drop, there is usually a pop”.

Tuesday’s advance/decline line scenario of 45 covered companies:

The open was positive with the A/DL at 28/11, 2 flat and 2 acquired (AST & OSIR);
The close was positive with an A/DL of 31/8 and 4 flats and 2 acquired;

The S&P 500 and Dow are both down more than 2% in May, while the NASDAQ had lost 3.8% through Tuesday’s close.

Upside volume stats: review the numbers, there is a message …

Tuesday: 6 out of the 31 upside had higher than the 3 month average volume;
Monday: 2 out of the 11 upside had higher than the 3 month average volume;
Friday: 1 out of the 8 upside had higher than the 3 month average volume;

Downside volume stats: here is where the session landing is expressed …

Tuesday: 3 out of the 8 downside had higher than the 3 month average volume;
Monday: 6 out of the 31 downside had higher than the 3 month average volume;
Friday: 6 out of the 33 downside had higher than the 3 month average volume;

ReNeuron (RENE.L) jumped +$10.00 to the upside after (Monday’s-$22.50 after Friday’s $14.50, Thursday’s+$27.00, Wednesday’s +$18.00 and last Tuesday’s $7.00) followed by Sage Therapeutics (SAGE +$7.62) followed by bluebird bio’s (BLUE) +$3.78 after (Monday’s -$6.86 after Friday’s-$2.46, Thursday’s +$5.97 and last Wednesday’s -$11.85) while the downside welcomed BioLife Solutions (BLFS -$0.30)after Monday’s +$0.47 after Friday’s +$0.48 and Vericel’s (VCEL-$0.18)

Pre-open indications: 6 HITs and 0 MISS

Applied Genetic Technologies (AGTC) closed up +$0.07 – hit;
Biostage (BSTG) closed flat at $2.58 on Tuesday, Monday, Friday and Thursday’s – hit;
bluebird bio (BLUE) closed up +$3.76 – hit;
Ionis Pharmaceuticals (IONS) closed up +$1.78 – hit;
ReNeuron (RENE.L) closed up +$10.00 – hit;
Verastem Oncology (VSTM) closed flat at $1.54 – hit;

Cell and gene therapy company’s worst-performers were:

Tuesday: BLFS (-$0.30), VCEL (-$0.18), MDXG )-$0.18), MESO (-$0.08) and ONVO (-$0.0226);
Monday: RENE.L (-$22.50), BLUE (-$6.86), SAGE (-$4.56), RARE (-$2.89) and RGNX (-$2.72);

Sector equities posting gains were:

Tuesday: RENE.L (+$10.00), SAGE (+$7.62), BLUE (+$3.78), QURE (+2.41) and ALNY (+$2.01);
Monday: QURE (+$1.34), BLFS (+$0.47), ADRO (+$0.11), AXGN (+$0.08) and IONS (+$0.06);

The week’s percentage (%) indicators:

Tuesday’s range of the 31 upside was +0.33% (CLBS) to +7.18% (EDIT) while the 8 downside ranged from -0.61% (KOOL) to -5.49% (MDXG);

Monday’s range of the 11 upside was +0.02% (ONCE) to +3.66% (PSTI) while the 31 downside ranged from -0.21% (XON) to -7.51% (BLCM);

4 flat – VSTM, BCLI, BSTG and BTX with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

The iShares NASDAQ Biotechnology (IBB) indicator:

Tuesday closed up +1.98 %
Monday closed down -1.40%
Friday closed down -0.64%
Thursday closed up +1.04%
Wednesday closed up +0.91%
Last Tuesday closed up +1.11%

May’s sessions:

Tuesday closed POSITIVE with 8 decliners, 31 advancers, 4 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 31 decliners, 11 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 33 decliners, 8 advancers, 2 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 12 decliners, 29 advancers, 2 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 14 decliners, 29 advancers, 0 flat and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 13 decliners, 30 advancers, 0 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 39 decliners, 4 advancers, 0 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 22 decliners, 21 advancers, 0 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 23 decliners, 20 advancers, 0 flat and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 18 decliners, 24 advancers, 1 flat and 2 acquired (AST & OSIR);

Tuesday closed NEGATIVE with 36 decliners, 6 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 8 decliners, 32 advancers, 3 flat and 2 acquired (AST & OSIR);

Friday closed POSITIVE with 4 decliners, 37 advancers, 2 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 23 decliners, 17 advancers, 3 flat and 2 acquired (AST & OSIR);

Wednesday (5/1) closed NEGATIVE with 30 decliners, 12 advancers, 1 flat and 2 acquired (AST & OSIR);

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.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.