March 25, 2020 8:37am

News: Alnylam Pharmaceuticals (ALNY) and Gen, a rare disease pharmaceutical company in Turkey executed an exclusive Distribution Agreement for ONPATTRO®, a RNAi therapeutic for the treatment of hATTR amyloidosis in adults with Stage 1 or Stage 2 polyneuropathy.

Pre-open indications: Skim if you can trim as to cell/gene and biotech positions, cash and “runways” must be the primary consideration of investing in this volatile environment.

I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

Dow future are UP +0.13% (+27 points), S&P futures are DOWN -0.84% (-21 points) and NASDAQ futures are DOWN -0.87% (-66 points)

 

Stock futures were battered and turned negative, following Tuesday’s historic rally as the White House and Senate reaching a deal on a coronavirus $2 trillion stimulus bill;

European markets climb after US stimulus package is agreed to and the Stoxx 600 jumps 4.5%;

Asia Pacific markets climbed, with Japan’s Nikkei 225 jumping 8.04% joining South Korea’s Kospi, Hong Kong’s Hang Seng index, Australia’s S&P/ASX 200 and the MSCI Asia ex-Japan index rose 4.26% by their closes.

 

Data docket: Weekly mortgage applications tank 29% as coronavirus sidelines homebuyers. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 3.82% from 3.74% last week.

 

Henry’omics:

The White House and Senate leaders finally agreed on a massive $2 trillion coronavirus stimulus bill.

From the title, “A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the widespread insistence they were obvious in hindsight.”

March continues as a rollercoaster themed by electronic trading driven volatility induced month.

Even after Tuesday’s massive rebound, investors are still struggling with uncertainty especially IF the coronavirus outbreak will be contained soon.

Don’t get too comfortable; unfortunately, volatility and a one (1) session share pricing strength is a short-term enemy. 

Momentum will be stuck in quicksand!

Even with Tuesday’s massive rebound, investors struggle to see the light at the end of the tunnel, especially without a clear sign that the coronavirus outbreak will be contained soon but, a stimulus will sweeten the sentiment for how long?

As Jim Cramer of CNBC stated of which I am of the same mind, “I hate this kind of rally. This was a machine-driven rally, just like the sell-offs … I want to wait to see.”

As to biotech investing, cash positions must be the first consideration of investing in this volatile environment.

Also, “be more careful with companies that are about to conduct or running trials that require biopsies. They could see disruptions since biopsies may fall into the bucket of “elective procedures” that hospitals postpone to free up resources for Covid-19 victims.  Very small companies with only one trial in progress could also be more vulnerable if “shelter in place” drags out. <Michael Brush, MarketWatch>

 

Tuesday night’s title: “cell and gene therapy recover as volume moves the ladder of inclines. Technically speaking, sentiment is being re-established as an indicator with still a question, has a resistance line been officially recognized?”

  • the NASDAQ closed UP +557.18 points (+8.12%);
  • the IBB closed up +5.25% and XBI also closed up +8.11%;
  • the close was positive with an A/D line of 32/3, 0 flat of 35 covered;
  • the range of the 32-upside was +0.43% (BCLI) to +32.45% (RENE.L) while the 3-downside ranged from -2.56% (ATHX) to -6.06% (MDXG); 
  • 15 out of the 32-upside had higher than the 3-month average volume;
  • 1 out of the 3-downside had higher than the 3-month average volume;

Q1:

  • March registered 10 negative and 7 positive closes
  • February registered 9 negative, 9 positive closes, 3 vacation days and 1 holiday.
  • January registered 9 negative, 10 positive closes and 2 holidays.

Q4:

  • December registered 11 negative and 10 positive closes
  • November registered 8 negative, 12 positive and 1 holiday closes;
  • October registered 14 negative, 10 positive and 1 neutral closes;

 

Companies in my headlights – It’s your decision; I provide an idea and context:

  • Trim positions or SELL into strength to accumulate powder depends on your entry position … otherwise leave your portfolio alone

 

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.