Equity Moves on Sell-Side Sentiment for July 19, 2012

Sell-side analysts had a light day following three days of 20-plus stocks re-rated daily into Buy- or Sell-equivalent views. Five stocks received new bullish (upgrades to or initiations with Buy, Overweight or Outperform) and three others were subject to new bearish ratings (downgrades to or initiations with, Sell, Underweight or Underperform). Stocks with new bullish ratings are bought (a long position) whereas the ones with new bearish ratings are sold (a short position). All transactions are completed at each stock's opening price. Positions are equally-weighed - each stock is bought or sold at equal position values. Such a composite does well when sold (short) stocks work their ways toward intraday lows and bought (long) ones continue towards intraday highs. These levels at optimal price points do not always occur simultaneously, but their average almost always will beat the major indices.Today's average equaled 2.34 percent. All eight stocks touched positive territory (shorts were down on the open, longs were up) for at least part of the session. The smallest such move was a positive 0.34 percent. The largest? 7.4 percentThat move belonged to ISIS Pharmaceuticals (NASDAQ: ISIS). Benzinga Professional reported at 7:37 AM that Jefferies had downgraded the stock from Buy to Underperform. Therefore, ISIS shares joined our composite as a short today. The stock opened at $13.52 and reached a low of $12.52 at 11:11 AM.All eight stocks also touched negative territory at one point or another in today's session. The worst price points (intraday highs for shorts and intraday lows for longs) averaged -1.72 percent, ranging from -0.54 to -3.50 percent. Currently, the composite is up 0.36 percent, roughly in line with S&P, whereas the Dow Jones Industrial Average has just turned negative.