August 25, 2019 1:02pm

The “machine” foxes got into the pricing “henhouse”

As headlines and tweets managed the markets with the ETF’s and indexes following; we need a “cleansing breath” to puff and purify our oversold positions

The oversold are begging for the upside …

The sector and overall stock market will consistently rise and fall over the short-term 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 down -633.34 points or -2.27% to 25,628.90;
  • The S&P closed down -75.84 points or -2.59% at 2,847.11;
  • The NASDAQ was down -239.62 or -3% to 7,751.77;

 

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

  • Friday the IBB closed down -2.62% while the XBI also closed down -2.67%
  • Thursday the IBB closed down -0.82% while the XBI also closed down -1.97%
  • Wednesday the IBB closed up +0.91% while the XBI also closed up +0.96 %
  • Tuesday the IBB closed N/A while the XBI also closed N/A (my miss)
  • Monday the IBB closed up +1.13% while the XBI also closed up +1.13%

 

Henry’omics:

As I had stated this a.m., “Watch out for new BOTTOMS to be formed” which was published due to multiple circumstances!

.. (https://www.regmedinvestors.com/articles/10990 )

 

All three major U.S. stock indexes closed sharply lower, setting a course for their 4th consecutive weekly declines after President Trump tweeted that US companies should "immediately start looking for an alternative to China.

Trump pressed American companies to leave China in response to an earlier announcement from Beijing that it would impose a new round of retaliatory tariffs on an additional $75 billion in U.S. goods, upping the ante in an acrimonious trade war that has roiled markets for months and shown little sign of abating <Reuters>.

It was a volatile week for the stock market. The S&P 500 saw a 1% weekly decline, while the Dow fell 1.5% and the NASDAQ was down 0.8%.

 

Stock-index futures pointed to a higher start Monday, buoyed by upbeat comments by President Trump on trade talks, along with a move by China over the weekend to lower borrowing costs for companies.

 

Pre-open post, “the week’s story - crash, dash and splash. Low volume sets the range of pricing volatility as daily turnover is weak. A lack of liquidity causes wild volatility.”

 

The advance/decline line scenario of 45 covered companies:  

  • Friday the close was negative with an A/D Line of 7/34 and 2 flat and 2 acquired;
  • Thursday the close was negative with an A/D Line of 9/33 and 1 flat and 2 acquired;
  • Wednesday the close was positive with an A/D Line of 24/18 and 1 flat and 2 acquired;
  • Tuesday the close was negative with an A/D Line of 11/32 and 0 flat and 2 acquired;
  • Monday the close was positive with an A/D Line of 36/6 and x flat and 2 acquired;

 

Decliners:

  • uniQure (QURE -$3.08);
  • bluebird bio (BLUE -$2.98 after Thursday’s -$8.62, Wednesday’s -$3.24);
  • CRISPER Therapeutics (CRSP -$2.23);
  • Global Blood therapeutics (GBT -$1.78 after Thursday’s +$0.39);
  • Ultragenyx (RARE -$1.67 after Thursday’s -$1.72);

Incliners:

  • Homology Medicines (FIXX +0.39 after Thursday’s +$0.77);
  • Sage Therapeutics (SAGE +0.19 after Thursday’s +$1.27, Wednesday’s +$3.16, Tuesday’s +$0.33 and Monday’s +$2.35);
  • Ionis Pharmaceuticals (IONS +$0.11 after Thursday’s -$4.30, Wednesday’s +$1.17 and Tuesday’s +$0.98);
  • Biostage (BSTG +$0.07);
  • Brain Cell Therapeutics (BCLI +$0.06);

 

The percentage (%) indicators: 

  • 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% ();
  • Thursday’s range of the 9 upside was +0.67% (AGTC) to +4.29% (FIXX) while the 33 downside ranged from -0.02% (ONCE) to -8.14% (XON);
  • Wednesday’s range of the 24 upside was +0.16% (QURE) to +7.75% (VSTM) while the 18 downside ranged from -0.05% (BLCM) to -8.66% (STML);
  • Tuesday’s range of the 11 upside was +0.20% (SAGE) to +11.39% (HSGX) while the 32 downside ranged from -0.07% (ALNY to -10.22% (ADVM);
  • Monday’s range of the 36 upside was +0.10% (GBT) to +13.54% (PSTI) while the 6 downside ranged from -0.09% (QURE) to -7.08% (BTX);

 

Upside volume stats:  to compare

  • Friday: 4 out of the 7 upside had higher than the 3 month average volume;
  • Thursday: 3 out of the 9 upside had higher than the 3 month average volume;
  • Wednesday: 0 out of the 24 upside had higher than the 3 month average volume;
  • Tuesday: 5 out of the 11 upside had higher than the 3 month average volume;
  • Monday: 3 out of the 36 upside had higher than the 3 month average volume;

Downside volume stats: NOTICE

  • Friday: 4 out of the 34 downside had higher than the 3 month average volume;
  • Thursday: 4 out of the 33 downside had higher than the 3 month average volume;
  • Wednesday: 5 out of the 18 downside had higher than the 3 month average volume;
  • Tuesday: 4 out of the 32 downside had higher than the 3 month average volume;
  • Monday: 2 out of the 6 downside had higher than the 3 month average volume;

 

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

 

August’s sessions:

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.