November 1, 2019 6:47pm

At the least, November started with a bang and will probably finish with a whimper as earnings season initiated tax selling season

However, investors brace yourself for the smaller cap sector “participant’s” LPS (loss-per-share) reporting’ sessions

Does the accuracy of estimates, forecasts and “runways” really set you off – selling frenzies are on the horizon?


 

It’s also better in small doses in the earnings’ quagmire

 

The Dow closed UP +301.13 points (+1.11%), the S&P closed UP +29.35 points (+0.97 %) and the NASDAQ closed UP +94.04 points (+1.13%)

 

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

  • Friday the IBB closed up +2.34% while the XBI closed up +2.49%
  • Thursday the IBB closed down -0.25% while the XBI closed down -0.17%
  • Wednesday the IBB closed up +0.13% while the XBI closed down -0.42%
  • Tuesday the IBB closed up +0.46% while the XBI closed down -0.28%
  • Monday the IBB closed up +1.34% while the XBI closed up +1.39%

 

The advance/decline line scenario of 45 covered companies:  

  • Friday the close was positive with an A/D line of 33/7, 2 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Thursday the close was negative with an A/D line of 17/24, 1 flat, 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 negative with an A/D line of 16/23, 3 flats, 1 reversed merged (HSGX) and 2 acquired;
  • Monday the close was positive with an A/D line of 27/12, 3 flat, 1 reversed merged (HSGX) and 2 acquired;

 

Henry’omics:

The cell and gene therapy sector (within my 45 covered companies) closed up, up and away from its usual performance as the Advance/Decline (A/D) line rocketed after last month and week’s heartbreak.

As I mentioned in this morning’s newsletter, the Institute for Supply Management’s reading on October U.S. manufacturing. The ISM’s manufacturing PMI came in at 48.3, representing a bigger-than-expected contraction in the sector. However, some of the survey’s internal components showed improvement, offsetting the disappointing headline number. The gauge on U.S. manufacturing fell to its lowest level in a decade in September amid lingering worries around U.S.-China trade talks.

 

The oversold were definitely … recognized, so they can become the … overbought and can melt into the sea (like the myth of Icarus) as approximately 15 companies prepare their Q3 number’s debut in the next two (2) weeks.

 

Decliners:

  • Homology Medicine (FIXX -$0.40);
  • Ionis Pharmaceuticals (IONS -$0.30);
  • Seneca Biopharma (Formerly Neuralstem) -0.31);
  • Mesoblast (MESO -$0.06);
  • Caladrius Bioscience (CLBS -$0.04);

Incliners:

  • ReNeuron RENE.L +$11.50 after Thursday’s -$4.50);
  • Sage Therapeutics (SAGE +$8.30 after Thursday’s -$2.36, Wednesday’s -$2.15,  Tuesday’s -$2.04 and Monday’s -$4.06);
  • Alnylam Pharmaceuticals (ALNY +$4.27);
  • Audentes Therapeutics (BOLD +$2.16);
  • bluebird bio (+$1.86 after Thursday’s -$2,19);

 

 

The percentage (%) indicators: 

  • Friday’s range of the 33 upside was +0.57% (BMRN) to +30.39% (BLCM +$0.24) while the 7 downside ranged from -0.66% (AGTC) to -3.04% (FIXX);

 

  • Thursday’s range of the 18 upside was +0.28% BCLI) to +11.76% (ADRO +$0.12) while the 22 downside ranged from -0.39% (XON) to -16.94% (CUR);

 

  • Wednesday’s range of the 13 upside was +0.39% (GBT) to +38.69% (CUR) while the 27 downside ranged from -0.17% (ONVO) to -13.60% (VSTM);

 

  • Tuesday’s range of the 16 upside was +0.21% (SGMO) to +9.07% (CRSP) while the 23 downside ranged from -0.37% (EDIT) to -6.11% (RARE);

 

  • Monday’s range of the 27 upside was +042% (ONCE) to +12.55% (CRSP) while the 12 downside ranged from -0.40% (MDXG) to -7.92% (KOOL -$0.37);

 

 

Upside volume stats:  to compare

  • Friday: 8 out of the 33 upside had higher than the 3 month average volume;
  • Thursday: 3 out of the 17 upside had higher than the 3 month average volume;
  • Wednesday: 5 out of the 13 upside had higher than the 3 month average volume;
  • Tuesday: 8 out of the 16 upside had higher than the 3 month average volume;
  • Monday: 8 out of the 27 upside had higher than the 3 month average volume;

Downside volume stats:

  • Friday: 3 out of the 7 downside had higher than the 3 month average volume;
  • Thursday: 7 out of the 24 downside had higher than the 3 month average volume;
  • Wednesday: 5 out of the 27 downside had higher than the 3 month average volume;
  • Tuesday: 8 out of the 23 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 12 downside had higher than the 3 month average volume;

 

 2 flat – 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:

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.