August 26, 2019 7:21pm

Trading volumes were lower which lead to volatile moves in markets.

The oversold were begging for the upside but, squeaked by with an advance/Decline (A/D) line of 22/19 of the 45 covered

After last week marked the indexes’ fourth straight weekly loss, their longest since May

The sector and overall stock market consistently rises and falls with alternating volatility and involuntary momentum contractions which I call “spasms”

 

 

 

As the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).

 

Markets and indexes:

  • The Dow closed up +171.46 points or +0.67% to 25,800.36;
  • The S&P closed up +31.27 points or +1.10% at 2,878.38;
  • The NASDAQ was up +101.97 or +1.32% to 7,853.73;

 

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

  • Monday the IBB closed up +0.73% while the XBI also closed +0.96%
  • Friday the IBB closed down -2.62% while the XBI also closed down -2.67%

 

Henry’omics:

Sector equities, indexes, ETFs and market jumped on Monday after President Trump said China is ready to come back to the negotiating table following a phone call Sunday.

The trade war is taking place against a backdrop of softening economic growth. Germany’s manufacturing sector is contracting while China’s economy grew at its slowest pace in nearly three decades in the second quarter <CNBC>.

Investors are worried about the trade war and what it’s going to affect; me, I am worried more about Hong Kong riots and the pegging to the dollar as an Asian center of trade and commerce!

It’s again selling the upside moves as quick as one can to quiet the nervous sector!

 

Extrapolating from MarketWatch with my own words induced …” valuations are trader’s problem, and the structure of the sector – “our” universe of cell and gene therapy companies morphs itself in response to become passive/aggressive, price-and risk-insensitive … algorithmic machine rules with an abnormally sluggish sentiment, as investors are half asleep … in an induced investor lethargy.”

This … volatility, low volume and lack of confidence and conviction … i.e. disruption … ain’t over!

 

Pre-open post, markets rallies on a phone call … I wish it was so easy for “our’ universe; who do I call … Cousin algorithms and its “machine” partner too notice the oversold are begging for relief “

I also stated in this a.m.’s post, “Get on the oversold bandwagon to BUY yet I would caution on some as they will be flipped if they range to high; the old Icarus parable.”

 

The advance/decline line scenario of 45 covered companies:  

  • Monday the close was positive with an A/D Line of 22/20 and 1 flat and 2 acquired;
  • Friday the close was negative with an A/D Line of 7/34 and 2 flat and 2 acquired;

 

Decliners:

  • bluebird bio (BLUE -$1.53 after Friday’s -$2.98, Thursday’s -$8.62 and last Wednesday’s -$3.24);
  • Spark Therapeutics (ONCE -1.53);
  • Ultragenyx (RARE -$1.07 after Friday’s -$1.67 and Thursday’s -$1.72);
  • Intellia Therapeutics (NTLA -$0.90);
  • Ionis Pharmaceuticals (IONS -0.36 after Friday’s +$0.11, Thursday’s -$4.30, Wednesday’s +$1.17 and last Tuesday’s +$0.98);

Incliners:

  • Global Blood therapeutics (GBT +$1.77 after Friday’s -$1.78 and Thursday’s +$0.39);
  • Audentes Therapeutics (BOLD +$0.63);
  • Vericel (VCEL +$0.60);
  • Alnylam Pharmaceuticals (ALNY +$0.35)
  • Homology Medicines (FIXX +0.39 after Thursday’s +$0.77);

 

The percentage (%) indicators: 

  • Monday’s range of the 22 upside was +0.02% (QURE) to +19.98% (BLCM) while the 20 downside ranged from -0.20% (VYGR) to -7.08% (Lineage Cell Therapeutics formerly BioTime (NYSEMKT :BTX);
  • Friday’s range of the 7 upside was +0.11% (SAGE) to +3.11% (BSTG +$0.07) while the 34 downside ranged from -0.33% (ALNY) to -7.08% (BTX);

 

Upside volume stats:  to compare

  • Monday: 4 out of the 22 upside had higher than the 3 month average volume;
  • Friday: 4 out of the 7 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Monday: 2 out of the 20 downside had higher than the 3 month average volume;
  • Friday: 4 out of the 34 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

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

Friday closed NEGATIVE with 34 decliners, 7advancers, 2 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 33 decliners, 9 advancers, 1 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 32 decliners, 11 advancers, 0 flat and 2 acquired (AST & OSIR);

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

Friday closed POSITIVE with 3 decliners, 39 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 28 decliners, 14 advancers, 1 flat and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 33 decliners, 9 advancers, 1 flat and 2 acquired (AST & OSIR);

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

Monday closed NEGATIVE with 29 decliners, 13 advancers, 1 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 30 decliners, 11 advancers, 2 flats and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 11 decliners, 28 advancers, 2 flats and 2 acquired (AST & OSIR);

Wednesday closed NEGATIVE with 21 decliners, 19 advancers, 3 flats and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 10 decliners, 32 advancers, 1 flat and 2 acquired (AST & OSIR);

Monday closed NEGATIVE with 41 decliners, 2 advancers, 0 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 34 decliners, 8 advancers, 1 flat and 2 acquired (AST & OSIR);

Thursday closed POSITIVE with 19 decliners, 22 advancers, 2 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.