March 19, 2020 5:45pm
Following violent and involuntary volatility continuing a state of panic and forced liquidations
Don’t expect much sustainability as electronic machine trading have no emotion or soul
Pre-open indications: 10 HITs < (RENE.L +$5.00), (IONS +$2.61), (ATHX +$0.43), (AGTC +$0.43), (SAGE +$0.19), (VCEL +$0.90), (EDIT +$1.71), (NTLA +$1.37), (SGMO +$0.57), (CRSP +$1.10) > and 2 MISS <(FATE +$1.49), (GBT -$0.40) >
Welcome to my world of defining the “grey’ in our universe!
The Dow closed UP +188.27 points (+0.95%), the S&P closed UP +11.29points (+0.47%) while the NASDAQ closed UP +160.73 points (+2.03%)
This Thursday morning’s title, “bada bing bada boom and calling it as is should be the Wuhan virus from where it emanated. Also, to express something that follows as a direct consequence of more market losses and being grossly oversold.”
As I had also stated:
- It might seem … very early but, I would forget the sticks and cautiously … start the game of “pick-up-stocks”!
- When in the big casino, bet’em if you’re feelin’ lucky!
And then, Indexes jumped, erasing opening round losses with the biggest one-day gain in cell and gene therapy company shares in a long while.
Share pricing actions have been trading in positive territory after a unique roller-coaster ride amid the coronavirus, COVID-19 or Wuhan virus mayhem.
Session-to-session swings were extremely random as Wednesday’s session showed signs of moving to the upside while the overnight and Thursday’s pre-open moves were initially chaotic!
- Following the roller-coaster ride that traveled up, after being down, round and round for twelve (12) sessions through today’s close…
Also, the CBOE Volatility Index (VIX) traded down Thursday -4.45 points or -5.82% following Wednesday’s up +0.54 or +0.71%, Tuesday’s down -6.78 points or -8.20% at 75.91 following Monday’s highest close at +24.86 or +42.99%.
The number of confirmed U.S. coronavirus cases has surged to at least 11,238 after Wednesday’s toll of 6,400, up from Tuesday’s 4,281 cases confirmed while the death count has broken at least 157. <John Hopkins University>
President Trump highlighted therapies from Gilead Sciences (GILD) and Regeneron REGN) during a briefing about the pandemic. Trump said his administration is working with the FDA to speed up trials of these therapies to help treat the virus. GILD’s remdesivir drug was previously used to treat Ebola. <CNBC>
- Shares of REGN were up +4.83% for the day, while GILD declined -1.1%.
I take a contrarian (doubting Thomas”) approach in determining whether a bottom or buying opportunity in cell and gene therapy stocks was in my mind’s eye amidst a historic sell-off: which was scarier than going to the supermarket at 7 a.m. while pondering COVID-19, Wuhan or coronavirus headlines.
My historical “upbringing” and training in warning or indication intelligence serves both a continuing routine function in my daily routine pounded-in by years that all indications or possible signs are being examined, evaluated before in these cases being written about.
At least now, I am not preparing “others” for possible or potential hostilities!
As I have previously written, the definition of the word “indicate” refers to something less than certainty that could provide that ounce or fragment of a possible recognition for insight!
Remember as you read each day or night, the distinction between indicators and indications as one establishes actualities.
As I also stated, in today’s title, “Don’t expect much sustainability as electronic machine trading have no emotion or soul.”
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Thursday, the IBB closed up +2.78% and XBI also closed up +5.76%
- Wednesday, the IBB closed down -2.93% and XBI also closed down -2.94%
- 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%
The advance/decline line scenario of 35 covered companies:
- Thursday’s close was positive with an A/D line of 30/5, 0 flat of 35 covered;
- Wednesday’s close was negative with an A/D line of 10/25, 0 flat of 35 covered;
- Tuesday’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;
Thursday’s (top 10) incliners:
- ReNeuron (RENE.L +$5.00 after Wednesday’s -$5.50, Tuesday’s -$7.00 and Monday’s -$7.50);
- bluebird bio (BLUE +$4.46 after Wednesday’s -$1.58);
- Regenxbio (RGNX +$4.31 after Wednesday’s -$5.34);
- Ultragenyx (RARE +$3.30 after Wednesday’s -$2.56, Tuesday’s+$3.70 and Monday’s -$9.54);
- Ionis Pharmaceuticals (IONS +$2.61);
- Alnylam Pharmaceuticals (ALNY +$2.23 after Wednesday’s +$0.74 and Tuesday’s +$4.70);
- BioLife Solutions (BLFS +$11.93);
- Editas Medicine (EDIT +$1.71 after Wednesday’s +$1.51);
- Fate Therapeutics (FATE +$1.49 after Wednesday’s +$0.77 and Tuesday’s +$4.92);
- Homology Medicine (FIXX +$1.39);
Thursday’s (only 5) decliners:
- Mesoblast (MESO -$0.66 after Wednesday’s +$0.38 and Tuesday’s -$0.36);
- Global Blood Therapeutics (GBT -$0.40);
- Cellectis SA (CLLS -$0.17);
- AxoGen (AXGN -$0.13);
- Bellicum Pharmaceuticals (BLCM -$0.04);
The percentage (%) indicators:
- Thursday’s range of the 30-upside was +0.68% (SAGE) to +57.06% (PGEN) the 5-downside ranged from -0.87% (GBT) to -14.93% (MESO);
- Wednesday’s range of the 10-upside was +0.68% (QURE) to +11.64% (PGEN) the 25-downside ranged from -2.22% (GBT) to -26.64% (ADRO);
- Tuesday’s 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);
- Monday’s the range of the 1-upside was +0.22% (BSTG) while the 34-downside ranged from -3.22% (ALNY) to -25.93% (BLCM);
Upside volume stats: key numbers
- Thursday: 17 out of the 30-upside had higher than the 3-month average volume;
- Wednesday: 9 out of the 10-upside had higher than the 3-month average volume;
- 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;
Downside volume stats:
- Thursday: 4 out of the 5-downside had higher than the 3-month average volume;
- Wednesday: 15 out of the 25-downside had higher than the 3-month average volume;
- 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;
Thursday closed positive with 5 decliners, 30 advancer and 0 flat
Wednesday closed negative with 25 decliners, 10 advancer and 0 flat
Tuesday closed positive with 9 decliners, 26 advancer and 0 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.