February 27, 2020 9:01am

Bottoms are not seeing breadth indicators stabilizing and sentiment resides inside the soul of the machines as electronic trading is totally agnostic

Q4 and FY19 results: Intellia Therapeutics (NTLA) and Sage Therapeutics (SAGE)

Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

Dow future are DOWN -1.23% (-332 points), S&P futures are DOWN -1.22% (-38 points) and NASDAQ futures are DOWN -1.37% (-1211 points)

 

U.S. stock futures pointed to continued declines reports of a US coronavirus case of unknown origin;

European stocks plummeted further as the rapid spread of coronavirus continues to dominate market sentiment as the pan-European Stoxx 600 fell -2% in early trade;

Asia Pacific markets were mixed as Japanese shares led losses with the Nikkei 225 closing -2.13% lower while South Korea’s central bank kept its monetary policy on hold and Hong Kong’s Hang Seng index was largely flat as the MSCI Asia ex-Japan index was -0.3% lower.

 

Henry’omics:

Today’s market disruption is based on the CDC confirming the first U.S. coronavirus case of unknown origin in Northern California, indicating possible “community spread” of the disease. The CDC doesn’t know exactly how the patient, a California resident, contracted the virus.

“Through Wednesday’s close, the Dow has lost more than 2,000 points this week and on pace for its worst percentage-point weekly performance since 2008, down 7% over that time.” <CNBC>

The spread of the coronavirus — which has now infected more than 81,000 people and killed over 2,700 — continues to rattle markets around the world.

 

… I have previously stated, markets were “looking for an excuse” to sell” but, it’s getting unrestrained and exaggerated…

 

Wednesday night’s title: “sector struggles as rebound slips. Electronic and algorithmic trading drives today’s action. The question of the week so far, how are we pricing in risk versus uncertainty?”

  • the NASDAQ closed UP +15.16 points (+0.17%)
  • the IBB closed UP +1.56% and XBI closed UP +0.49%
  • the close was negative with an A/D line of 17/ 18, 0 flat of 35 covered;
  • the range of the 17-upside was +0.49% (PSTI) to +9.67% (BSTG) while the 18-downside ranged from -0.01% (BLUE) to -17.68% (BCLI);
  • 2 out of the 17-upside had higher than the 3-month average volume;
  • 4 out of the 18-downside had higher than the 3-month average volume;

 

Q1:

February registered 7 negative, 8 positive closes, 3 vacation days and 1 holiday – so far.

January registered 9 negative, 10 positive closes and 2 holidays.

Q4:

  • December register 11 negative and 10 positive closes
  • November registered 1 holiday, 12 positive and 8 negative close;
  • October registered 10 positive, 1 neutral and 14 negative closes;

 

Companies in my headlights – It’s your decision; I provide an idea and context:

Pre-open indications: HOLD

 

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.