May 11, 2020 7:04pm
Biotech, RegMed, cell and gene therapy companies are back in the market’s good graces as any remedy developments are now not taken for granted. These companies have been oversold until they’re overbought.
Pre-open indications follow-up: 5 HITs < (Bellicum Pharmaceuticals (BLCM -$0.30), bluebird bio (BLUE +$0.95), ReNeuron (RENE.L -$7.00), Pluristem (PSTI -$0.32); Sold into Strength -Athersys (ATHX +$0.43) and 1 MISS < BioLife Solutions (BLFS +$1.28)
An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector. Check the BOTTOM LINE <read more>
The Dow closed DOWN -109.33 points (-0.45%), the S&P closed UP +0.39 points (+0.01 %) while the NASDAQ closed UP +71.02 points (+0.78 %)
Indexes recovered most of their earlier losses on Monday while the sector gained momentum as the morning evolved to afternoon.
The S&P 500 was up 0.1% around midday after falling as much as 0.9% to start the session.
The Nasdaq traded 0.7% higher in its sixth (6th) straight winning session and for the year, it was up +3% and traded about +6% below a record set in February.
Volume INCREASED with 12 out of the 24-upside having higher than the 3-month average volume and remained LOW with 2 out of the 9-downside having higher than the 3-month average volume. The percentage (%) of the xx-upside were +0.33% (SAGE) to +15.14% (ATHX) while the 9-downside ranged from -0.12% (STML) to -4.22% (RENE.L).
Hot upsides in today’s sector: gene editors
- Intellia Therapeutics (NTLA) +14.30% or +$1.95 to $15.59;
- CRISPR Therapeutics (CRSP) +13.84% or +$7.45 to $61.29;
- Editas Medicine (EDIT) +11.01% or +$2.72 to $27.43;
Hammered in today’s market:
- ReNeuron (RENE.L), Pluristem (PSTI), Bellicum Pharmaceuticals (BLCM), Global Blood Therapeutics (GBT), AxoGen (AXGN), Verastem (VSTM), Brainstorm Cell Therapeutics (BCLI) to name a few of the 9
Jumping with momentum:
- Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), Ionis Pharmaceuticals (IONS), Regenxbio (RGNX), Fate Therapeutics (FATE), to name a few of the 24
Q1/2020 results will be disseminated through RegMed Earnings Scorecard - Q1/20 - to date https://www.regmedinvestors.com/articles/11332 - 23 of 35 so far …
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB closed up +4.28% and XBI also closed up +4.77%
- Friday, the IBB closed up +0.98% and XBI also closed up +1.46%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was down -0.41 points or -1.47% at 27.57,
- Friday was down -3.46 points or -11.01% at 27.98,
RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Monday opened positive at 17/14 and 4 flats, stayed positive at the mid-day at 24/9 and 2 flats and closed positive at 24/9 and 2 flats;
- Friday opened positive at 29/4 and 2 flats, stayed positive at the mid-day at 23/11 and 1 flat and closed positive at 20/12 and 3 flats;
Monday’s (top 10) incliners:
- CRISPR Therapeutics (CRSP +$7.45);
- Alnylam Pharmaceuticals (ALNY +$6.30 after Friday’s -$5.32, Thursday’s -$3.82, Wednesday’s +$4.04, Tuesday’s +$5.27 and last Monday’s +$7.66);
- Ultragenyx (RARE +$3.52 after Friday’s +$0.72, Thursday’s -$3.14, Wednesday’s +$1.58, Tuesday’s -$0.04 and last Monday’s +$6.07);
- Editas Medicine (EDIT +$2.72 after Friday’s +$0.61, Thursday’s -$0.91, Wednesday’s -$0.59, Tuesday’s +$0.66 and last Monday’s +$2.74);
- Regenxbio (RGNX +$2.40 after Friday’s -$1.87);
- Intellia Therapeutics (NTLA +$1.95);
- Ionis Pharmaceuticals (IONS +$1.78 after Friday’s +$1.14, Thursday’s -$3.25 and last Wednesday’s -$1.22);
- Fate Therapeutics (FATE +$1.38);
- BioLife Solutions (BLFS +$1.28 after Friday’s +$0.51 and Thursday’s +$0.58);
- Voyager Therapeutics (VYGR +$1.23);
Monday’s (only 9) decliners:
- ReNeuron (RENE.L -$7.00 after Friday’s +$20.00 after +Thursday’s $25.00;
- Pluristem (PSTI -$0.32 after Friday’s +$1.40, Thursday’s -$0.61 and Wednesday’s -$0.28);
- Bellicum Pharmaceuticals (BLCM -$0.30 after Friday’s +$1.78 and Thursday’s +$0.44);
- Global Blood Therapeutics (GBT -$0.20 after Friday’s -$0.19, Thursday’s -$4.38, Wednesday’s +$2.50, Tuesday’s +$1.62 and last Monday’s +$3.41);
- AxoGen (AXGN -$0.14 after Friday’s +$0.63 and Thursday’s -$1.57);
- Verastem (VSTM -$0.08);
- Precision (PGEN -$0.03);
- Stemline Therapeutics (STML -$0.02);
- Brainstorm Cell Therapeutics (BCLI -$0.01 after Friday’s -$0.04, Thursday’s -$0.83, Wednesday’s -$0.47 and last Tuesday’s +$0.64);
Percentage (%) movement/range statistics: look closely …
- Monday’s % of the 24-upside were +0.33% (SAGE) to +15.14% (ATHX) while the 9-downside ranged from -0.12% (STML) to -4.22% (RENE.L);
- Friday’s % of the 20-upside were +0.65% (CRSP) to +31.9% (BLCM) while the 12-downside ranged from -0.07% (NTLA) to -4.58% (RGNX);
Sentiment and a few daily indicators:
Investors remain jittery about re-opening the economy too soon, capping the broader market’s upside momentum after South Korea warned of a new cluster of cases involving night clubs. Singapore and Japan also confirmed new cases. The World Health Organization said that countries who have relaxed lockdown measures have seen a spike in coronavirus cases. <CNBC>
The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …
- Monday 1.3 million,
- Friday 1.2 million,
Monday’s death rate escalated to a total of 79,894 after Friday’s 75,852 and last Monday’s 67,686, <John Hopkins University>
Upside volume stats:
- Monday: 12 out of the 24-upside had higher than the 3-month average volume;
- Friday: 8 out of the 20-upside had higher than the 3-month average volume;
Downside volume stats:
- Monday: 2 out of the 9-downside had higher than the 3-month average volume;
- Friday: 3 out of the 12-downside had higher than the 3-month average volume;
Closing flat: - Biostage (BSTG) and Mesoblast (MESO)
Friday (5/11) closed positive with 9 decliners, 24 advancer and 2 flats
Friday (5/8) closed positive with 12 decliners, 20 advancer and 3 flats
Thursday closed negative with 22 decliners, 11 advancer and 2 flats
Wednesday closed positive with 13 decliners, 20 advancer and 2 flats
Tuesday closed positive with 10 decliners, 25 advancer and 0 flats
Monday (5/4) closed positive with 7 decliners, 28 advancer and 0 flats
Friday (5/1) closed negative with 25 decliners, 8 advancer and 2 flats
The BOTTOM LINE: There are so many scenarios for the future as business seeks to reopen. Some say, “There’s a widely held perception that the rally reflects expectations the COVID-19 pandemic will have a piercing but short effect on the economy, with growth rebounding sharply later in the year once the outbreak is corralled, workers return to their jobs and the economy begins humming again.”
Others say, that isn’t the case (Tony Dwyer, chief market strategist at Canaccord Genuity): “In our view, it hasn’t spiked on the anticipation of a strong economic rebound, but has ramped based on the coronavirus impact and a probable abnormal economic recovery,” he wrote.
So, what’s normal or abnormal … “sectors that usually lead the stock market out of a recession-induced downturn are NOT doing so. Instead, leadership has come largely from big tech stocks and pharmaceuticals rather than financials and cyclical sectors that closely track the ups and downs of the economy, such as industrials and consumer discretionary stocks.”
And, then I propose that … today’s share pricings are being fattened to be overbought and slaughtered by the algorithmic processing trading machines?
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.