May 22, 2020 6:09pm

Pre-open indications follow-up results: 8 HITs and 1 MISS <who>

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The Dow closed DOWN -8.96 points (-0.04%), the S&P closed UP +6.94 points (+0.24%) while the NASDAQ closed UP +39.71 points (+0.43%)

 

Pre-open indications follow-up results: 8 HITs < buys or sold into strength - Applied Genetic Technologies (AGTC +$0.12), Athersys (ATHX -$0.06), Brainstorm Cell Therapeutics (BCLI +$0.39), Cellectis SA (CLLS +$0.14), Adverum Biotechnologies (ADVM +$0.18), CRISPR Therapeutics (CRSP +$2.16), Intellia Therapeutics (NTLA -$0.42), Regenxbio (RGNX +$1.21)> and 1 MISS < Pluristem (PSTI -$0.17)> Utilize volatility as a tool, capital built is purchase power accumulated!

 

Henry’omics:

Indexes dipped and then regained momentum as the session proceed through the early afternoon on Friday while weekly advances came amid optimism around the “potentials” global economy reopening as well as rising hopes for a coronavirus vaccine.

However, tensions between China and the U.S. offset the increasing optimism around a potential coronavirus vaccine.

  • Overnight, China released draft legislation over new national security measures on Hong Kong after last year’s burst of anti-government protests in the city. That law is expected to increase Beijing’s hold over Hong Kong. China also opted against setting a GDP target for 2020 as the coronavirus batters the second-largest economy in the world;
  • That proposal was unveiled after the Senate passed a bill earlier in the week that would potentially delist Chinese stocks from U.S. exchanges. <CNBC>

For the week, Dow was up about 3.3% week to date and was headed for its biggest one-week gain since the week of April 9. The S&P 500 and NASDAQ both gained 3% this week. The Russell 2000, which tracks small-cap stocks jumped +7%.

 

Current attractions and trader targets:

  • Fate Therapeutics (FATE) reached a 52-wwek high of $34.15;
  • Cellectis SA (CLLS) reached a 52-wwek high of $21.97;

 

RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Friday opened positive at 18/15 and 2 flats, stayed positive at the mid-day at 21/14 and closed positive at 29/6;
  • Thursday opened negative at 9/24 and 2 flats, turned positive at the mid-day at 20/12 and 3 flats and closed positive at 29/13 and 3 flats;
  • 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;

 

Key metrics:

  • Volume continued LOW with 3 out of the 29-upside having higher than the 3-month average volume and 3 out of the 6-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 26-upside were +0.25% (STML) to +13.32% (BLCM) while the 9-downside ranged from -0.52% (MDXG) to -4.12% (VSTM); 

 

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), bluebird bio (BLUE), AxoGen (AXGN), Pluristem (PSTI), Mesoblast (MESO) and Aduro biotech (ADRO) to name the 9 slipping of the 35 covered

Jumping with momentum:

  • Ultragenyx Pharmaceuticals (RARE), CRISPR Therapeutics (CRSP), ReNeuron (RENE.L), Regenxbio (RGNX) and UniQure NV (QURE) to name a few of the 26 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 …

  • Adverum Biotechnologies (ADVM) reports earnings on May 28th

 

The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:

  • Friday, the IBB closed up +0.66% and XBI also closed up +1.20%
  • Thursday, the IBB closed down -1.08% and XBI also closed down -0.83%
  • 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%

 

Friday’s (top 10) incliners:

  • Ultragenyx (RARE +$3.32 after Thursday’s-$0.14 after Wednesday’s -$0.98, Tuesday’s -$0.98 and Monday’s +$1.30);
  • CRISPR Therapeutics (CRSP +$2.16 after Thursday’s +$0.99, Wednesday’s +$3.23 and Tuesday’s +$0.01);
  • Fate Therapeutics (FATE +$1.69 after Thursday’s +$2.55, Wednesday’s +$2.13, Tuesday’s -$0.74 and Monday’s +$1.15);
  • ReNeuron (RENE.L +$1.00);
  • Sage Therapeutics (SAGE +$0.96);
  • uniQure NV (QURE +$0.92 after Thursday’s +$2.62);
  • Bellicum Pharmaceuticals (BLCM +$0.90);
  • Editas Medicine (EDIT +$0.82 after Thursday’s +$0.72 after Wednesday’s +$1.49);
  • Global Blood Therapeutics (GBT +$0.62 after Thursday’s -$1.60);
  • Editas Medicine (EDIT +$0.82);

Friday’s (only 9) decliners:

  • Alnylam Pharmaceuticals (ALNY -$1.34 after Thursday’s -$1.59, Wednesday’s +$1.04, Tuesday’s -$2.46 and last Monday’s +$5.59);
  • AxoGen (AXGN -$0.18 after Thursday’s -$0.14);
  • Pluristem (PSTI -$0.17 after Thursday’s -$0.26 after Wednesday’s -$0.32);
  • Mesoblast (MESO -$0.16 after Thursday’s -$0.18);
  • Verastem (VSTM -$0.08);
  • Aduro Biotech (ADRO -$0.06);
  • Athersys (-$0.06 after Thursday’s -$0.06);
  • Solid Biosciences (SLDB -$0.06);
  • MiMedx (MDXG -$0.02);

 

Percentage (%) movement/range statistics: look closely …

  • Friday’s percentage (%) of the 26-upside were +0.25% (STML) to +13.32% (BLCM) while the 9-downside ranged from -0.52% (MDXG) to -4.12% (VSTM); 
  • Thursday’s percentage (%) of the 29-upside were +0.05% (SAGE) to +8.32% (FATE) while the 13-downside ranged from -0.02% (RARE) to -5.11% (VCEL); 
  • 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:

The Dow got kicked, the S&P rose slightly and the NASDAQ traded slightly higher; the issue of optimism is that we’re still locked down.

The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …

  • Friday 1.58 million
  • Thursday 1.5 million
  • Wednesday 1.53 million
  • Tuesday 1.5 million,
  • Monday 1.4 million,

Friday’s death rate escalated to a total of 95,052 after Thursday’s 93,439 after Wednesday’s 92,128, Tuesday’s 90,396 and Monday’s 89,666 <John Hopkins University>

 

Upside volume stats: 

  • Friday: 3 out of the 26-upside had higher than the 3-month average volume;
  • Thursday: 5 out of the 29-upside had higher than the 3-month average volume;
  • 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:

  • Friday was down -1.37 points or +-4.64 % at 28.16,
  • Thursday was up + 1.54 points or +5.50% at 29.53,
  • 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:

  • Friday: 3 out of the 9-downside had higher than the 3-month average volume;
  • Thursday: 0 out of the 13-downside had higher than the 3-month average volume;
  • 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: 0

 

May - review the patterns

Friday closed positive with 9 decliners, 26 advancer and 0 flats

Thursday closed positive with 13 decliners, 29 advancer and 3 flats

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: I actually felt “we” would be seeing a resistance focused session but, I tend to be EARLY in my prognoses. Never, get me wrong – I welcome the upside as a believer in sector companies. From the title, resistance can be thought of as ceiling. Determining levels of resistance is a price level where investors have a high willingness to sell the security or in today’s session or not.

We are presently caught in a conundrum, the more buying and selling occurs at a particular price level, resistance wains although volume remains low yet, volatility is high?

Most fast, steep advance seems to be always met with selling forced by electronic machine oriented “greed rules” to profit yet, today support levels altered resistance with a slow and steady advance.

I am NOT always right in predicting sector directionals from selling into strength! however, I am RIGHT in PROFITING

 

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.