March 9, 2020 5:52pm

Higher volumes, deepening percentage moves speak to sinking share pricing as the XBI drops -8.06%

Q4 and FY19 results: Aduro Biotech (ADRO)

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector act like it’s their blueprint. Stocks have lately been alternating between the horrific and the benign

The Dow closed DOWN -2013.76 points (-7.79%), the S&P closed DOWN -225.81 points (-7.60%) while the NASDAQ closed DOWN -624.94 points (-7.29%)

 

Henry’omics:

Indexes plunged with the Dow, S&P and NASDAQ down with a broad market sell-off triggering a key market circuit breaker minutes after the opening bell.

When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

Much of Monday’s anxiety came after Saudi Arabia on Saturday slashed official crude selling prices for April in a sudden U-turn from previous attempts to support the oil market. The move came after OPEC talks collapsed Friday, prompting some strategists to see oil prices crater to $20 per barrel this year. <CNBC>

As of Monday, global cases of the infection have climbed to more than 111,000 with at least 3,800 deaths around the world. The situation is also worsening in the U.S. with New York, California and Oregon all declaring states of emergency.

The CBOE Volatility Index VIX was up +12.52%.

 

Crazy market, what more can one say – a wash-out and more oversold than we have been in the sector.

Cell and gene therapy equities have dropped into correction mode — defined as a pullback of 10% over the past six (6) sessions including today as fears over the economic impact of the coronavirus outbreak continue to rise.

Liquidity is nowhere, as market randomness overreacts with the velocity of fear, panic and lunacy!

 

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

  • Monday, the IBB closed down -6.80% and XBI closed down -8.06%
  • Friday, the IBB closed down -1.53% and XBI closed down -2.50%

The advance/decline line scenario of 35 covered companies:

  • Monday, the close was negative with an A/D line of 3/32, 0 flat of 35 covered;
  • Friday, the close was negative with an A/D line of 6/29, 2 flats of 35 covered;

 

Monday’s (only 3) incliners:

  • Biostage (BSTG +$0.02);
  • Solid Biosciences (SLDB +$0.14 after Friday’s +$0.07);
  • Athersys (ATHX +$0.20);

Monday’s (lowest 5) decliners:

  • ReNeuron (-$7.00 after Friday’s -$3.00 and Thursday’s -$11.50);
  • CRISPR Therapeutics (CRSP -$6.56);
  • bluebird bio (BLUE -$5.02 after Friday’s -$3.84 and Thursday’s -$1.01);
  • Ultragenyx (RARE -$4.67 after Friday’s -$3.70 and Thursday’s -$2.08);
  • Fate therapeutics (FATE -$4.62);

 

The percentage (%) indicators:

  • Monday’s the range of the 3-upside was +0.53% (BSTG) to +16.53% (BSTG +$0.02) while the 30-downside ranged from -3.02% (ALNY) to -22.31% (PGEN); 
  • Friday’s the range of the 4-upside was +1.81% (IONS) to +12.2% (BCLI) while the 29-downside ranged from -0.50% (BLFS) to -10.68% (ADVM); 

 

Upside volume stats:  to compare

  • Monday: 2 out of the 3-upside had higher than the 3-month average volume;
  • Friday: 3 out of the 4-upside had higher than the 3-month average volume;

Downside volume stats:

  • Monday: 24 out of the 32-downside had higher than the 3-month average volume;
  • Friday: 13 out of the 29-downside had higher than the 3-month average volume;

 

Volume standouts:

Upside …

  • Athersys (ATHX +$0.20 with 7.062 M shares traded <3-month average =680, 234 shares);

Downside:

  • Verastem Oncology (VSTM -$0.50 with 3.83 M shares traded after Friday’s +$0.34 with 5.77 M shares traded after Thursday’s +$0.07 with 2.247 M shares traded and Wednesday’s +$0.04 with 2.408 M shares traded (3-month average = 2.594 M shares);

 

0 flat

 

March

Monday closed negative with 32 decliners, 3 advancers and x flats

Friday closed negative with 29 decliners, 4 advancers and 2 flats

Thursday closed negative with 24 decliners, 11 advancers and 2 flats

Wednesday closed positive with 3 decliners, 30 advancers and 2 flats

Tuesday closed negative with 26 decliners, 7 advancers and 2 flats

Monday closed positive with 11 decliners, 24 advancers and 0 flats

 

 

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.