May 20, 2020 5:28pm
As I had stated in the a.m. newsletter, “Looks like a good day to “play” in the opening market’s “sandbox” on Wednesday’s!
Pre-open indications follow-up: 4 HITs < Athersys (ATHX +$0.20) BioLife Solutions (BLFS -$0.38), Applied Genetic Technologies (AGTC +$0.15), CRISPR Therapeutics (CRSP +$3.23), Pluristem (PSTI $0.01) and 1 MISS < Intellia Therapeutics (NTLA +$0.36) >
An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector. Who is feeding your portfolio - profit from RMi’s analysis! Check the BOTTOM LINE <read more>
The Dow closed up +369.04 points (+ 1.52%), the S&P closed UP +48.67 points (+1.67 %) while the NASDAQ closed UP +190.67 points (+2.08%)
Indexes rose sharply on Wednesday as traders continue to grapple with the market’s wild moves from this week.
What’s moving markets:
- Investors continue to watch how the reopening of states is going and so far, there doesn’t appear to be a major spike in the virus.
- On Wednesday, Connecticut began allowing consumers to dine in at restaurants with outdoor seating and some shops.
- New York Gov. Andrew Cuomo also said the state’s outbreak is back to where it started.
- Strong results amid a lockdown from Lowe’s helped market sentiment. The home improvement retailer reported a same-store sales increase for the first quarter of 11.2%. The shares gained 0.7%.
- In another sign of economic activity amid the pandemic, Target said a surge in digital sales fueled a 10.8% increase in same-store sales last quarter. The shares, which are up 13% in the last one month, fell slightly.
- Oil continued to trade higher on Wednesday as traders bet on more driving activity. <CNBC>
Wednesday’s advance put the major averages up more than 3% for the week. It also put the Nasdaq up 4.5% for 2020, adding to the index’s lead over the Dow and S&P 500 year to date. The index closed Wednesday’s session less than 5% from its February record.
RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Wednesday opened positive at 30/4 and 1 flat, stayed positive at the mid-day at 27/6 and 2 flats and closed positive at 30/1 and 1 flat;
- Tuesday opened negative at 13/21 and 1 flat, stayed negative at the mid-day at 11/12 and 3 flats and closed negative at 9/23 and 3 flats;
- Monday opened positive at 28/15 and 2 flats, stayed positive at the mid-day at 29/6 and 2 flats and closed positive at 29/6;
- Volume was still LOW with 9 out of the 30-upside having higher than the 3-month average volume and 2 out of the 4-downside having higher than the 3-month average volume;
- The percentage (%) of the 30-upside were +0.11% (PSTI) to +14.94% (FIXX) while the 4-downside ranged from -0.08% (VYGR) to -4.95% (CLBS)
News that drove share pricing value:
Fate Therapeutics (FATE +$2.13 or +7.38% to $30.99) the U.S. FDA has cleared an IND application for FT538, the first CRISPR-edited, iPSC-derived cell therapy.
- FT538 is an off-the-shelf natural killer (NK) cell cancer immunotherapy that is derived from a clonal master induced pluripotent stem cell (iPSC) line engineered with three functional components to enhance innate immunity: a novel high-affinity, non-cleavable CD16 (hnCD16) Fc receptor; an IL-15/IL-15 receptor fusion (IL-15RF); and the elimination of CD38 expression;
- FATE plans to initiate clinical investigation of three once-weekly doses of FT538 as a monotherapy in acute myeloid leukemia (AML) and in combination with daratumumab, a CD38-directed monoclonal antibody therapy, for the treatment of multiple myeloma;
- “Clinical data suggest that deficiencies in NK cell-mediated immunity, which are evident even at the earliest stages of myeloma, continue to accumulate through disease progression;
- FATE believe administration of FT538 to patients can restore innate immunity, and that the anti-cancer effect of certain standard of care treatments, such as monoclonal antibodies, can be more effective when combined with the engineered functionality of FT538.”
Hammered in today’s market:
- Caladrius Biosciences (CLBS), BioLife Solutions (BLFS), Ultragenyx Pharmaceuticals (RARE), and Voyager Therapeutics (VYGR) to name the only 4 slipping of the 35 covered
Jumping with momentum:
- bluebird bio (BLUE), Regenxbio (RGNX), Sage Therapeutics (SAGE), CRISPR Therapeutics (CRSP), Fate Therapeutics (FATE) to name a few of the 30 trading up of 35 covered
Q1/2020 results will be disseminated through RegMed Earnings Scorecard - Q1/20 ...
to date https://www.regmedinvestors.com/articles/11332 - 31 of 35 so far …
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB closed up +2.06% and XBI also closed up +2.89%
- Tuesday, the IBB closed down -1.92% and XBI also closed down -2.85%
- Monday, the IBB closed up +1.16% and XBI also closed up +2.91%
Wednesday’s (top 10) incliners:
- bluebird bio (BLUE +$7.27 after Tuesday’s +$0.76);
- Regenxbio (RGNX +$3.65 after Tuesday’s-$1.35 after Monday’s +$1.34);
- CRISPR Therapeutics (CRSP +$3.23 after Tuesday’s+$0.01);
- Sage Therapeutics (SAGE +$2.81 after Tuesday’s -$2.46);
- Fate Therapeutics (FATE +$2.13 after Tuesday’s -$0.74 after Monday’s +$1.15);
- Homology Medicine (FIXX +$1.99);
- Editas Medicine (EDIT +$1.49);
- Alnylam Pharmaceuticals (ALNY +$1.04 after Tuesday’s -$2.46, Monday’s +$5.59, Friday’s +$3.08, Thursday’s -$3.26 and last Wednesday’s -$4.53);
- Adverum Biotechnologies (ADVM +$1.00 after Tuesday’s +$0.93 after Monday’s -$0.11);
- Ionis Pharmaceuticals (IONS +$0.72 after Tuesday’s -$1.52 after Monday’s +$1.95);
Wednesday’s (only 4) decliners:
- Ultragenyx (RARE -$0.98 after Tuesday’s -$0.98, Monday’s +$1.30, Friday’s +$6.56, Thursday’s +$0.65 and last Wednesday’s -$2.22);
- BioLife Solutions (BLFS -$0.38);
- Caladrius Biosciences (CLBS -$0.10);
- Voyager Therapeutics (VYGR -$0.01);
Percentage (%) movement/range statistics: look closely …
- Wednesday’s percentage (%) of the 30-upside were +0.11% (PSTI) to +14.94% (FIXX) while the 4-downside ranged from -0.08% (VYGR) to -4.95% (CLBS);
- Tuesday’s percentage (%) of the 9-upside were +0.04% (EDIT) to +5.17% (ADVM) while the 23-downside ranged from -0.22% (FIXX) to -6.54% (SAGE);
- Monday’s % of the 29-upside were +0.52% (CLLS) to +12.02% (CLBS) while the 6-downside ranged from -0.06% (FIXX) to -6.56% (BSTG);
Sentiment and a few daily indicators:
- Stocks rose sharply on Wednesday, building on this week’s gains, as traders increased bets of an economic recovery with more states easing stay-at-home orders. Tech shares led the gains and “our” universe of RegMed/cell and gene therapy shares followed.
The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …
- Wednesday 1.53 million
- Tuesday 1.5 million,
- Monday 1.4 million,
Wednesday’s death rate escalated to a total of 92,128 after Tuesday’s 90,396 and Monday’s 89,666 <John Hopkins University>
Upside volume stats:
- Wednesday: 9 out of the 30-upside had higher than the 3-month average volume;
- Tuesday: 4 out of the 9-upside had higher than the 3-month average volume;
- Monday: 12 out of the 29-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -2.60 points or -8.52% at 27.93,
- Tuesday was down -0.67 points or -2.25% at 28.70,
- Monday was down -2.58 points or -8.09% at 29.31,
Downside volume stats:
- Wednesday: 2 out of the 4-downside had higher than the 3-month average volume;
- Tuesday: 2 out of the 23-downside had higher than the 3-month average volume;
- Monday: 1 out of the 6-downside had higher than the 3-month average volume;
Closing flat: RENE.L
Wednesday closed positive with 4 decliners, 30 advancer and 1 flat
Tuesday closed negative with 23 decliners, 9 advancer and 3 flats
Monday (5/18) closed positive with 6 decliners, 29 advancer and - flat
Friday closed positive with 10 decliners, 24 advancer and 1 flat
Thursday closed negative with 24 decliners, 8 advancer and 3 flats
Wednesday closed negative with 31 decliners, 3 advancer and 1 flat
Tuesday closed negative with 21 decliners, 11 advancer and 3 flats
Monday (5/11) closed positive with 9 decliners, 24 advancer and 2 flats
Friday 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: to our “our” sector is LOVE ‘em or LEAVE them – that’s holdings, maybe for a day or a week or even forever!”
Consider share pricing recovery timing versus volume!
What’s the ride you’ve been on in regard to volatility; doesn’t it raise questions to the near-term after the extremely bumpy short-term?
Which companies are “skirting the edges” of reliability and it’s NOT just share pricing but, ethics, laxity of multiple regulatory filings and management misbehaviors?
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.