September 18, 2019 9:58pm

Volatility defines the sector’s risk profile

Wednesday the close was negative with an Advance/Decline (A/D) line of 11/31, 1 flat and 2 acquired

The U.S. Fed cut the overnight rate by 25 basis points to a range of 1.75% to 2%, as was widely expected

As the leading voice of cell and gene therapy investors; I am not always a doom and gloom analyst/journalist but a man who has been “there” (BUY, SELL, VC and operating roles) with the gray hair and a readership with extrapolations to prove it

 

There are a variety of end uses to sector forecasts; the most prominent, they are used to protect your portfolio’s life and value.

 

Markets and indexes:

  • The Dow closed up +36.28 points or +0.13% to 27,147.08;
  • The S&P closed up +1.03 points or +0.03% at 3,006.73;
  • The NASDAQ was down -8.62 or -0.11% to 8,177.39;

 

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

  • Wednesday the IBB closed down -0.75% while the XBI also closed down -0.78%
  • Tuesday the IBB closed up +0.05% while the XBI also closed down -0.29%
  • Monday the IBB closed up +0.94% while the XBI also closed up +1.44%

 

Henry’omics:

Two (2) down sessions followed a positive close to start the week.

The cell and gene therapy sector continued to close with depreciating moves as news and electronic machines deepen the pricing crater of the lack of any headlines.

The major indexes are within striking distance of record set in July. The Dow and S&P 500 were about 1% from their all-time highs. The NASDAQ was 2.2% below its record.

 

Let it ride as the algorithms usually respond to oversold conditions!

 

The advance/decline line scenario of 45 covered companies:  

  • Wednesday the close was negative with an Advance/Decline (A/D) line of 11/31 and 1 flat and 2 acquired;
  • Tuesday the close was positive with an A/D line of 14/27 and 2 flat and 2 acquired;
  • Monday the close was positive with an A/D line of 31/11 and 1 flat and 2 acquired;

 

Decliners:

  • ReNeuron (RENE.L -$5.00 after Tuesday’s +$10.00);
  • Sage Therapeutics (SAGE -$3,85 after Tuesday’s +$5.56);
  • uniQure (QURE -$2.65 after Tuesday’s  -$0.57);
  • Alnylam Pharmaceuticals (ALNY -$2.33);
  • Ionis Pharmaceuticals (IONS -$1.67 after Tuesday’s -$1.07);

Incliners:

  • Stemline Therapeutics (STML +$0.73);
  • bluebird bio (BLUE +$0-.72 after Tuesday’s +$2.01);
  • Fate Therapeutics (FATE +$0.62);
  • BioMarin Pharmaceuticals (BMRN +$0.50);
  • Voyager Therapeutics (VYGR +$0.26);

 

The percentage (%) indicators: 

  • Wednesday’s range of the 11 upside was +0.23% (PSTI) to +6.74% (STML) while the 31 downside ranged from -0.28% (ONCE) to -9.17% (BLCM);
  • Tuesday’s range of the 14 upside was +0.04% (EDIT) to +17.09% (CLBS) while the 27 downside ranged from -0.13% (BLUE) to -7.02% (XON);
  • Monday’s range of the 32 upside was +0.03% (ONCE) to +8.82% (ADVM) while the 11 downside ranged from -0.23% (PSTI) to -5.26% (CLBS);

 

Upside volume stats:  to compare

  • Wednesday: 4 out of the 11 upside had higher than the 3 month average volume;
  • Tuesday: 3 out of the 14 upside had higher than the 3 month average volume;
  • Monday: 6 out of the 32 upside had higher than the 3 month average volume;

Downside volume stats:

  • Wednesday: 6 out of the 31 downside had higher than the 3 month average volume;
  • Tuesday: 9 out of the 27 downside had higher than the 3 month average volume;
  • Monday: 3 out of the 11 downside had higher than the 3 month average volume;

 

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

 

September’s sessions:

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

Tuesday closed NEGATIVE with 27 decliners, 14 advancers, 2 flat and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 11 decliners, 32 advancers, 0 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 22 decliners, 18 advancers, 3 flats and 2 acquired (AST & OSIR);

Thursday closed NEGATIVE with 26 decliners, 17 advancers, 0 flats and 2 acquired (AST & OSIR);

Wednesday closed POSITIVE with 15 decliners, 26 advancers, 2 flats and 2 acquired (AST & OSIR);

Tuesday closed POSITIVE with 10 decliners, 31 advancers, 2 flats and 2 acquired (AST & OSIR);

Monday closed POSITIVE with 18 decliners, 25 advancers, 0 flat and 2 acquired (AST & OSIR);

Friday closed NEGATIVE with 26 decliners, 16 advancers, 1 flat and 2 acquired (AST & OSIR);

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

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.