May 17, 2019 7:28pm

It is not unusual for stocks to weaken at the end of a week; the sector needs a fix of market moving news or we will be stuck with potential “black swans”

Pre-open indications: 4 HITs and 2 MISS (1 by a penny)

The sector is what it is, until it isn’t and even then it doesn’t seem to be … when you point one finger, there are three fingers pointing back at you!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations? 

 

Markets and indexes:

  • The Dow closed down -98.68 points or -0.38% to 25,764.00
  • The S&P closed down -16.79 points or -0.58% at 2,859.53
  • The NASDAQ was down -81.76 points or -1.04% to 7,816.29

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Henry’omics:

Sector equities were punished yet again falling to the newest bottom as markets closed lower after trade talks between China and the U.S. have stalled.

The S&P 500 and NASDAQ closed below their 50-day moving average lines after stocks headed south amid heightened trade talk concerns.

Volume remains LOW and percentage movers to the up and downsides also remain low!

My view, after earnings season the sector seems to shift for three (3) to fundamental factors that lately … are difficult to predict and problematic to trade on!

Sector equities started off the week selling-off. Indexes following up with three straight days of gains; however, those gains were not enough to stave off weekly losses.

The S&P 500 and the NASDAQ suffered their second successive weekly declines after U.S. stocks failed to fully recover from Monday's steep sell-off.

The Dow posted its longest weekly losing streak since May 2016, falling 0.7%. The S&P 500 fell -0.8% and NASDAQ fell 1.3% this week <CNBC>.

Pre-open post, “today’s key word, sentiment; I still believe as I alluded to on Thursday a.m. “we’re headed into overbought territory”.

 

Bottom Line: Despite Tuesday, Wednesday and Thursday’s sector rebound, traders – not investors are reluctant to trust any upside’s longevity based on investor’s lack of risk appetite!

 

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

  • The open was negative with the A/DL at 9/33, 1 flat and 2 acquired (AST & OSIR);
  • The mid-day was negative with an A/DL of 12/30 and 1 flat and 2 acquired;
  • The close was negative with an A/DL of 8/33 and 2 flat and 2 acquired;

 

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

  • Friday: 1 out of the 8 upside had higher than the 3 month average volume;
  • Thursday: 9 out of the 29 upside had higher than the 3 month average volume;
  • Wednesday: 4 out of the 29 upside had higher than the 3 month average volume;
  • Tuesday: 7 out of the 30 upside had higher than the 3 month average volume;
  • Monday: 0 out of the 4 upside had higher than the 3 month average volume;

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

  • Friday: 6 out of the 33  downside had higher than the 3 month average volume;
  • Thursday: 2 out of the 12  downside had higher than the 3 month average volume;
  • Wednesday: 2 out of the 14  downside had higher than the 3 month average volume;
  • Tuesday: 4 out of the 13 downside had higher than the 3 month average volume;
  • Monday: 9 out of the 39 downside had higher than the 3 month average volume;

 

ReNeuron (RENE.L) fled to the downside (-$14.50 after Thursday’s+$27.00 after Wednesday’s +$18.00 after Tuesday’s $7.00) followed by bluebird bio’s (BLUE -$2.46 after Thursday’s +$5.97 and Wednesday’s -$11.85) while the upside welcomed Adverum Biotechnologies (ADVM +$0.92) and BioLife Solutions’ (BLFS) +$0.48.

 

Pre-open indications: 4 HITs and 2 MISS

  • Athersys (ATHX) closed down -$0.06 – hit;
  • Biostage (BSTG) closed flat at $2.58 – hit – should investors brace for a bankruptcy (?);
  • Fate therapeutics (FATE) closed down -$0.81  – hit;
  • Ionis Pharmaceuticals (IONS) closed down -$0.38 – miss;
  • ReNeuron (RENE.L) closed down -$14.50 – hit;
  • Verastem Oncology (VSTM ) closed down - $0.01 – miss;

 

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

  • Friday: RENE.L (-$14.50), BLUE (+$2.46), SAGE (-$2.35), VYGR (-$2.33) and GBT (-$2.22);
  • Thursday: AXGN (-$0.84), CLLS (-$0.28), VCEL (-$0.18), FIXX (-$0.17) and BCLI (-$0.14);
  • Wednesday: BLUE (-$1.85), ONCE (-$0.53), SLDB (-$0.41), AGTC (-$0.33) and IONS (-$0.19);
  • Tuesday: SLDB (-$3.04), ALNY (-$1.17), ONCE (-$0.82), CRSP (-$0.13) and STML (-$0.12);
  • Monday: BLUE (-$8.73), RENE.K (-$5.00), GBT (-$4.26), RARE (-$3.49) and QURE (-$3.42);

Sector equities posting gains were:

  • Friday: ADVM (+$0.92), BLFS (+$0.48), BCLI (+$0.06), ONVO (+$0.015) and CUR (+$0.0053);
  • Thursday: RENE.L (+$27.00), BLUE (+$5.97), SAGE (+$3.27), GBT (+$2.83) and QURE (+$2.76);
  • Wednesday: RENE.L (+$18.00), BMRN (+$6.11), FATE (+$1.09), CRSP (+$1.05) and SAGE (+$0.96);;
  • Tuesday: RENE.L (+$7.00), GBT (+$2.44), RARE (+$2.25), SAGE (+$2.00) and BLUE (+$1.94);
  • Monday: BLFS (+$0.16), AGTC (+$0.12), CLBS (+$0.08) and CUR (+$0.0165)

 

The week’s percentage (%) indicators: 

  • Friday’s range of the 8 upside was +0.22% (FIXX) to +11.32% (ADVM) while the 33 downside ranged from -0.39% (MESO) to -9.52% (VYGR);
  • Thursday’s range of the 29 upside was +0.53% (PSTI) to +26.05% (ADVM) while the 12 downside ranged from -0.04% (ONCE) to -4.47% (HSGX);
  • Wednesday’s range of the 29 upside was +0.04% (AXGN) to +12.28% (BTX) while the 14 downside ranged from -0.14% (RARE) to -8.229% (AGTC);
  • Tuesday’s range of the 30 upside was +0.50% (IONS) to +17.05% (VSTM) while the 13 downside ranged from -0.17% (BLCM) to -34.35% (SLDB);
  • Monday’s range of the 4 upside was +2.94% (AGTC) to +4% (CUR +$0.0165) while the 39 downside ranged from -0.10% (HSGX) to -6.55% (BLUE);

 

2 flat – XON and BSTG with 2 acquired (AST & OSIR) and the Spark Therapeutics’ (ONCE) acquisition by Roche still being delayed

 

The iShares NASDAQ Biotechnology (IBB) indicator:

  • Friday closed down -0.64%
  • Thursday closed up +1.04%
  • Wednesday closed up +0.91%
  • Tuesday closed up +1.11%
  • Monday closed down -3.50%
  • Last Friday closed down -0.32%

 

May’s sessions:

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.