November 7, 2019 6:43pm

Momentum moves on trade deal optimism

Earnings reporting: Adverum Biotechnologies (ADVM), Audentes Therapeutics (BOLD) and Cellectis SA (CLLS),

CEOs should be re-thinking a motto: “Duty, Honor and Shareholders” – many have forgotten who they really work for - investors!

 

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

 

The Dow closed UP +182.24 points (0.66%), the S&P closed UP +8.40 points (+0.27%) and the NASDAQ closed UP +23.89 points (+0.28%)

 

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

  • Thursday the IBB closed up +0.04% while the XBI closed up +0.21%
  • Wednesday the IBB closed down -1.21% while the XBI closed down -1.42%
  • Tuesday the IBB closed up +0.02% while the XBI closed flat at 0.00%
  • Monday the IBB closed down -0.35% while the XBI closed down -0.53%

 

The advance/decline line scenario of 45 covered companies:  

  • Thursday the close was positive with an A/D line of 21/18, 3 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Wednesday the close was negative with an A/D line of 13/27, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Tuesday the close was positive with an A/D line of 23/17, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was negative with an A/D line of 18/22, 2 flats, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

On Thursday, the world’s the US and China reportedly agreed to remove existing trade tariffs, sparking a huge rotation into equities and out of bonds.

It comes after reports that a meeting between President Trump and Chinese President Xi Jinping could be postponed until December — delaying a chance for the two leaders to sign an interim trade deal <CNBC>.

From my data docket, the latest weekly jobless claims numbers came in at 211,000, down slightly from 218,000 in the previous week.

Referencing “our” universe, the Advance/Decline (A/D) line was tight 23/18; the IBB and XBI were barely up followed by continual low volume moving the needle …

 

It’s NOT investors but, trading that is driving sector inclines – and it’s NOT dependable!

 

Decliners:

  • ReNeuron (RENE.L -$2.25 after Wednesday’s -$6.00);
  • Bluebird bio (BLUE -$2.04);
  • Sage Therapeutics (-$0.67 after Wednesday’s -$5.73);
  • Vericel (VCEL -$0.45);
  • Bellicum Pharmaceuticals (BLCM -$0.37);

Incliners:

  • Regenxbio (RGNX +$2.74);
  • AxoGen (AXGN +$2.13);
  • uniQure NV (QURE +$1.90);
  • Fate Therapeutics (FATE +$1.54 after Wednesday’s -$2.31);
  • CRISPR Therapeutics (CRSP +$1.18 after Wednesday’s+$1.23 after Tuesday’s -$1.56 and Monday’s -$2.12);

 

 

The percentage (%) indicators: 

  • Thursday’s range of the 21 upside was +0.51% (SAGE) to +17.09% (AXGN) while the 18 downside ranged from -0.12% (GBT) to -27.47% (BLCM);

 

  • Wednesday’s range of the 13 upside was +0.25% (BMRN) to +7.31% (KOOL) while the 27 downside ranged from -0.07% (ONCE) to -16.94% (CUR);

 

  • Tuesday’s range of the 23 upside was +0.34% (ALNY) to +12.86% (VCEL) while the 17 downside ranged from -0.32% (ONVO) to -16.94% (CUR);

 

  • Monday’s range of the 18 upside was +0.09% (ONCE) to +19.63% (BLCM) while the 29 downside ranged from -0.07% (BMRN) to -16.94% (CUR);

 

 

Upside volume stats:  to compare

  • Thursday: 5 out of the 21 upside had higher than the 3 month average volume;
  • Wednesday: 8 out of the 13 upside had higher than the 3 month average volume;
  • Tuesday: 5 out of the 23 upside had higher than the 3 month average volume;
  • Monday: 1 out of the 19 upside had higher than the 3 month average volume;

Downside volume stats:

  • Thursday: 4 out of the 18 downside had higher than the 3 month average volume;
  • Wednesday: 8 out of the 27 downside had higher than the 3 month average volume;
  • Tuesday: 6 out of the 17 downside had higher than the 3 month average volume;
  • Monday: 1 out of the 22 downside had higher than the 3 month average volume;

 

3 flat – BCLI, BSTG and VSTM 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 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.