Indication intelligence, analysis and sector perception

RegMed Investors’ (RMi) closing bell: cavernous cell and gene therapy sector trends

January 31, 2020 5:52pm

My coverage list closed negative with an Advance/Decline (A/D) line of 5/29 and 1 flat after Thursday’s negative A/D line of 4/31 with 0 flat of 35 covered

Also, the week's "numbers" in review ...

It's a daunting task to understand risk, seeing the unforeseen; on the basis of my own “rules”, I set-up my own “warning analysis” which isn’t machine oriented!

The Dow closed DOWN -603.41 points (-2.09%), the S&P closed DOWN -58.14 points (-1.77%) and the NASDAQ closed DOWN -148.00 points (-1.59%)

Henry’omics:

Indexes fell sharply on Friday, wiping out the Dow’s gain for January, as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus.

The outbreak of the coronavirus has added another cycle to headwinds for “our’ universe as Q4 results start appearing on 2/6/2020.

The Dow had its worst day since August. The S&P 500 had its worst day since October, as the Nasdaq posted a +2% gain in January.

The Cboe Volatility Index (VIX), widely considered to be the best fear gauge in the market, rose to just around 19 this month from 13.78, a gain of more than 37%.

At the risk of repeating myself, “The sector consistently rises and falls with alternating volatility and spasmodic momentum contractions which I call “paroxysms”.

Another quip, 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 real question and my response for investors of what to do in the past two (2) sessions – was … Wait for Godot and NOTHING!

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

Friday the IBB closed down -1.73% and XBI closed down -1.26%
Thursday the IBB closed down -1.70% and XBI closed down -1.18%
Wednesday the IBB closed down -0.08% and XBI closed down -0.21%
Tuesday the IBB closed up +1.23% and XBI closed up +1.67%
Monday the IBB closed down -0.79% and XBI closed down -0.64%

The advance/decline line scenario of 35 covered companies:

Friday the close was negative with an A/D line of 5/29, 1 flat of 35 covered,
Thursday the close was negative with an A/D line of 4/31, 0 flat of 35 covered,
Wednesday the close was barely positive with an A/D line of 18/17, 0 flats of 35 covered,
Tuesday the close was negative with an A/D line of 20/12, 3 flats of 35 covered,
Monday the close was negative with an A/D line of 7/27, 1 flat of 35 covered,

Decliners:

ReNeuron (RENE.L -$8.50);
Global Blood Therapeutics (GBT -$2.72);
bluebird bio (BLUE -$2.55);
uniQure (QURE -$1.76 after Thursday’s -$2.56, Wednesday’s +$0.70 and Tuesday’s -$0.53);
Ionis Pharmaceuticals (IONS -$1.23);

Incliners:

Aduro biotechnologies (ADRO +$0.33);
Stemline Therapeutics (STML +$0.25);
Sangamo Therapeutics (SGMO +$0.110;
Verastem (VSTM +$0.09);
Brainstorm Cell therapeutics (BCLI +$0.05);

The percentage (%) indicators:

Friday’s range of the 5 upside was +1.24% (BCLI) to +24.44% (ADRO) while the 29 downside ranged from -0.18% (VYGR) to -8.27% (BLCM);
Thursday’s range of the 4 upside was +0.24% (VCEL) to +4.37% (FIXX) while the 31 downside ranged from -0.63% (FATE) to -12.64% (AGTC);
Wednesday’s range of the 18 upside was +0.33% (CLBS) to +2.80% (ALNY) while the 17 downside ranged from -0.06% (VCEL) to -5.41% (ADRO);
Tuesday’s range of the 20 upside was +0.12% (CLLS) to +5.71% (ADRO) while the 12 downside ranged from -0.24% (BCLI) to -12.96% (BLCM);
Monday’s range of the 7 upside was +0.55% (CLLS) to +6.22% (AGTC) while the 27 downside ranged from -0.56% (IONS) to -13.83% (BLCM);

Upside volume stats: to compare

Friday: 2 out of the 5 upside had higher than the 3-month average volume;
Thursday: 2 out of the 4 upside had higher than the 3-month average volume;
Wednesday: 2 out of the 18 upside had higher than the 3-month average volume;
Tuesday: 3 out of the 20 upside had higher than the 3-month average volume;
Monday: 3 out of the 7 upside had higher than the 3-month average volume;

Downside volume stats:

Friday: 5 out of the 29 downside had higher than the 3-month average volume;
Thursday: 7 out of the 31 downside had higher than the 3-month average volume;
Wednesday: 2 out of the 17 downside had higher than the 3-month average volume;
Tuesday: 2 out of the 12 downside had higher than the 3-month average volume;
Monday: 8 out of the 27 downside had higher than the 3-month average volume;

0 flat

January’s sessions of 35 covered companies:

Friday closed NEGATIVE with 29 decliners, 5 advancers and 1 flat;

Thursday closed NEGATIVE with 31 decliners, 4 advancers and 0 flat;

Wednesday closed POSITIVE with 17 decliners, 18 advancers and 0 flats;

Tuesday closed POSITIVE with 12 decliners, 20 advancers and 3 flats;

Monday closed NEGATIVE with 27 decliners, 7 advancers and 1 flat;

Friday closed NEGATIVE with 28 decliners, 7 advancers and 0 flat;

Thursday closed NEGATIVE with 21 decliners, 13 advancers and 1 flat;

Wednesday closed POSITIVE with 17 decliners, 18 advancers and 0 flat;

Tuesday closed NEGATIVE with 28 decliners, 5 advancers and 2 flat;

Monday markets were closed

Friday closed NEGATIVE with 20 decliners, 14 advancers and 1 flat;

Thursday closed POSITIVE with 15 decliners, 18 advancers and 2 flat3;

Wednesday closed POSITIVE with 14 decliners, 20 advancers and 1 flat;

Tuesday closed POSITIVE with 7 decliners, 28 advancers and 1 flat;

Thursday closed POSITIVE with 12 decliners, 22 advancers and 1 flat;

Wednesday closed POSITIVE with 10 decliners, 23 advancers and 2 flats;

Tuesday closed POSITIVE with 15 decliners, 22 advancers and 0 flat;

Monday closed POSITIVE with 13 decliners, 22 advancers and 0 flat;

Friday closed NEGATIVE with 19 decliners, 15 advancers and 1 flat;

Thursday closed NEGATIVE with 18 decliners, 15 advancers and 2 flats;

Wednesday markets were closed;

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.

35 companies, 1 interpreter!

Insight, foresight and recommendation

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

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Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

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The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.