March 17, 2020 5:31pm
Choppy and upside trading is the latest example of volatile markets rebounding from the worst day in more than three (3) decades, one step forward after one step back
Pre-open indications: 10 HITs <AGTC (+$0.12), GBT (+$5.49), BLUE (+$3.16), RARE (+$3.70), EDIT (+$1.90), CRSP (+$3.32), NTLA (+$2.14), BLFS (+$1.20), STML (+$0.18), FIXX (+$0.72)> and 4 MISS <MESO (-$0.36), VCEL (-$1.22), RENE.L (-$7.00), ATHX (+$0.28)>
Welcome to my world of defining the â€śgreyâ€™ in our universe and I get it right 88% of the time!
The Dow closed UP +1048.86 points (+5.20%), the S&P closed UP +143.06 points (+6.06%) while the NASDAQ closed UP +430.19 points (+6.23%)
Indexes rebounded on Tuesday as the White House laid out more plans to cushion the economic setback of the coronavirus. Actions by the Fed to boost access to funds for businesses also aided the comeback.
The roller-coaster moves investing back into the sector as investors, machines and institutions recognized depressed pricing but â€¦ volume could be a reaction to being oversold and headlines of the coronavirus â€“ that should NOT be trusted.
The Dow traded more than 200 points lower at one point yet closed up +1048.79 points; having dipped below 20,000 for the first time since February 2017. The S&P was up +6% after briefly trading lower on the day while the Nasdaq gained +6.2%, having been down early in the session.
Also, the CBOE Volatility Index (VIX) traded down -6.78 points or -8.20% at 75.91 following yesterdayâ€™s highest close at +24.86 or +42.99%.
Regeneron (REGN) is aiming to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer which represents a marked acceleration in the clinical timeline, sparking a rally in its share pricing of +$50.86 or +11.54 to $491.69 and is UP +$2.31 or +0.47% in the aftermarket.
At least 4,281 cases have been confirmed in the U.S. along with more than 70 deaths, according to data from Johns Hopkins University. President Trump also said the crisis could stretch into August, adding the administration may look at locking down â€ścertain areas.â€ť <CNBC>
A thematic from many market pundits â€“ value recalibration!
There are NO perceived bargains after the sectorâ€™s plunge, buying in will have some pain of which being early will realize gain â€“ PATIENCE in the short-term will bring rewards in the near term!
But â€¦ I believe we still havenâ€™t found â€¦ BOTTOMS for â€śourâ€ť universe of cell and gene therapy sector!
When you're looking at the depressed cell and gene therapy sectorâ€™s pricing to buy after the coronavirus inception, look for those with surging relative strength lines.
- The RS line measures a stock's price performance vs. the S&P 500. So, the stocks with strong RS lines deserve a spot on your watchlist as we wait for a new market uptrend;
- BE AWARE, strong volume and dramatic upsides will be a target for the algorithmic electronic trading machines!
- Pick well, measure the past months pricing in historical pricing columns â€“ think simplicity and common sense as the depths of decline WILL be replaced by slow but, vertical inclines.
A message â€¦ 1+2+3+4 does NOT = 11; so who and what tacks-on the additional digit â€“ a president who killed the canary of reality and responsibility, the lawyers who billed to their pockets delight or was it - Board of director members (BOD) who set-up their own â€śclubâ€ť to control â€¦ forgetting the term, fiduciary responsibility â€¦ and the list goes-on - wasnâ€™t that a song of exasperation or just another â€śetceteraâ€ť! do you really think â€¦ the â€śbirdsâ€ť wonâ€™t sing to regulatory authorities!
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed up +7.32% and XBI also closed up +3.61%
- Monday, the IBB closed down -8.96% and XBI also closed down -12.53%
- Friday, the IBB closed up +6.34% and XBI closed up +6.44%
The advance/decline line scenario of 35 covered companies:
- Tuesdayâ€™s close was positive with an A/D line of 26/9, 0 flat of 35 covered;
- Monday, the close was negative with an A/D line of 1/34, 0 flat of 35 covered;
- Friday, the close was positive with an A/D line of 29/6, 0 flat of 35 covered;
Tuesdayâ€™s (top 5) incliners:
- Global Blood Therapeutics (GBT +$5.49 after Mondayâ€™s -$12.65 and Fridayâ€™s +$8.49);
- Fate Therapeutics (FATE +$4.92);
- Alnylam Pharmaceuticals (ALNY +$4.70);
- Ultragenyx (RARE +$3.70 after Mondayâ€™s -$9.54);
- CRISPR Therapeutics (CRSP +$3.32);
Tuesdayâ€™s (lowest 5) decliners:
- ReNeuron (RENE.L -$7.00 after Mondayâ€™s -$7.50);
- Sage Therapeutics (SAGE -$1.42 after Mondayâ€™s -$7.93 and Fridayâ€™s +$3.46);
- Vericel (VCEL -$1.22);
- Biostage (BSTG -$0.55 after Mondayâ€™s +$0.55 after Fridayâ€™s -$0.89);
- Mesoblast (MESO -$0.36);
The percentage (%) indicators:
- Tuesdayâ€™s the range of the 26-upside was +2.74% (SLDB) to +28.47% (FATE) the 9-downside ranged from -2.23% (ADVM) to -18.03% (BSTG -$0.55);
- Mondayâ€™s the range of the 1-upside was +0.22% (BSTG) while the 34-downside ranged from -3.22% (ALNY) to -25.93% (BLCM);
- Fridayâ€™s range of the 29-upside was +0.53% (VYGR) to +29.45% (ADVM) while the 6-downside ranged from -0.95% (AGTC) to -26.25% (BSTG);
Upside volume stats: to compare
- Tuesday: 18 out of the 26-upside had higher than the 3-month average volume;
- Monday: 0 out of the 1-upside had higher than the 3-month average volume;
- Friday: 24 out of the 29-upside had higher than the 3-month average volume;
Downside volume stats:
- Tuesday: 7 out of the 9-downside had higher than the 3-month average volume;
- Monday: 29 out of the 34-downside had higher than the 3-month average volume;
- Friday: 3 out of the 6-downside had higher than the 3-month average volume;
Tuesday closed positive with 9 decliners, 26 advancer and x flat
Monday closed negative with 34 decliners, 1 advancer and 0 flat
Friday closed positive with 6 decliners, 29 advancers and 0 flat
Thursday closed negative with 33 decliners, 2 advancers and 0 flat
Wednesday closed negative with 32 decliners, 2 advancers and 1 flat
Tuesday closed positive with 10 decliners, 24 advancers and 1 flat
Monday closed negative with 32 decliners, 3 advancers and 0 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.