December 27, 2018 5:38pm

… As it’s sold into a vacuum as liquidity squeezes share pricing

Uncertainty weighs on the sector which drives volatility and it’s hard to say when it will subside

As I stated, “There’s a difference between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules. After gains, there’s pain; followed by advances, declines and other progressions or was it regressions?”

Pre-open indications: 3 HITs

 

Investors should be reading about today’s final “figures” – be a subscriber and be ready for Friday’s session! 

The 6 W’s: Who, what, where, when, why and what of it …

 

Daily analytics:

  • The Dow closed up +260.37 points or +1.14% to 23,138.82
  • The S&P closed up +21.13 points or +0.85% to 2,488.83
  • The NASDAQ was up +25.14 points or +0.38% to 6,579.49

 

Henry’omics:

Sector equities closed lower on Thursday, as indexes were dug into a big hole; after adding massive gains from the previous session with a strong surge in the final hours of trading.

At its lows of the day, the Dow had fallen 611 points while the S&P 500 had fallen -2.8% and the NASDAQ had fallen -3.3%.

Then the  major averages started surging after 2 p.m. ET, around the time they all hit their lows of the day.

“You went from $200 million to sell [at the close] which was less than expected. That started the early rally. Now there's over $2 billion to buy” said Art Cashin, director of floor operations at UBS; ”They thought were going to be huge sellers, now they're huge buyers." <CNBC>

 

So, I ask what is NORMAL these December days?

And, are we closer to a bottom or a top (?) – I say bottom!

 

From the pre-open newsletter: “key word in three (3) trading sessions left in the year. What is sustainable? Did “shorts” cover and then buy into more downside!”

 

The advance/decline line scenario of 45 covered companies:   

  • The open was negative with an A/DL of 10/34 and 1 flat;
  • The mid-day was negative with an A/DL of 1133 and 1 flat;
  • The close was negative with an A/DL of 20/24 and 1 flat;

 

Pre-open indications: 3 HITs

  • CRISPER Therapeutics (CRSP) closed UP +$0.10 – hit, I’d said trade it;
  • Editas medicine (EDIT) closed DOWN -$0.27 – hit, I’d said trade it;
  • Intellia (NTLA) closed DOWN -$0.52 – hit, I’d said trade it;

 

Daily sector metrics: rebalancing

… Greatest volume to the downside:  HSGX, VSTM, SGMO, XON and FATE

… Upside volume was weighted to:  MDXG, IONS, CRSP, BMRN and BTX

… Weakness ($) to the downside:  RGNX (-$1.47), BLUE (-$1.44), ONCE (-$1.09), SAGE (-$1.08) and SLDB (-$0.90)

… Moves ($) to the upside:  IONS (+$0.97), BLFS (+$0.90), BOLD (+$0.88), OSIR (+$0.78) and AXGN (+$0.55)

… The week’s history lesson, the iShares NASDAQ Biotechnology (IBB) closed:

  • Thursday was up +0.03% after NOT indicating in the pre-market;
  • Wednesday was up +5.80% after indicating a POSITIVE +0.09% in the pre-market;
  • Tuesday was Christmas and closed;
  • Monday was down -1.38% after NOT indicating in the pre-market;
  • Friday was down -3.91% after NOT indicating in the pre-market;
  • Last Thursday was down -1.71% after indicating a POSITIVE  +0.28% in the pre-market;

 

Tonight’s percentage (%) indicators:  

  • Review the range of the 20 upside from +0.26% (BMRN) to +9.10% (BLFS) while the 24 downside ranged from -0.12% (CLLS) to -17.30% (HSGX) with 1 flat close (RENE.L)

Volume stat:  

  • 8 out of the 20 upside had higher (than the 3 month average) volume
  • 13 out of the 24 downside experienced greater volume (than the 3 month average)

 

December sessions:

Thursday closed NEGATIVE with 24 decliners, 20 advancers and 1 flat;

Wednesday closed POSITIVE with 7 decliners, 37 advancers and 1 flat;

Tuesday, the market was closed – Christmas; 

Monday closed POSITIVE with 21 decliners, 23 advancers and 1 flat;

Friday closed NEGATIVE with 42 decliners, 3 advancers and 0 flat;

Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

Wednesday closed NEGATIVE with 34 decliners, 9 advancers and 2 flat;

Tuesday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

Monday closed NEGATIVE with 34 decliners, 9 advancers and 2 flats;

Friday closed NEGATIVE with 30 decliners, 13 advancers and 2 flats;

Thursday closed NEGATIVE with 36 decliners, 8 advancers and 1 flat;

Wednesday closed POSITIVE with 8 decliners, 35 advancers and 2 flat;

Tuesday closed NEUTRAL with 21 decliners, 21 advancers and 3 flat;

Monday closed POSITIVE with 18 decliners, 25 advancers and 1 flat;

Friday closed NEGATIVE with 33 decliners, 11 advancers and 1 flat;

Thursday closed POSITIVE with 20 decliners, 22 advancers and 3 flats;

Wednesday markets were closed;

Tuesday closed NEGATIVE with 36 decliners, 7 advancers and 2 flats;

Monday (12/3) closed POSITIVE with 10 decliners, 32 advancers and 3 flats;

 

  • In 22 sessions in November – there were 1 holiday, 10 positive closes, 1 neutral and 10 negative closes;
  • In 23 sessions in October – there were 17 negative closes and 6 positive closes

 

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.