May 27, 2020 7:00pm

On the verge of what? Don’t bet your portfolio on enthusiasm! Trends flip-flop, selling the open and buying the close has gained energy while holding overnight causes agita, always anticipate reversals

Pre-open indications follow-up results: 3 HITs and 3 MISS <who> Still building powder!

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The Dow closed UP +553.16 points (+2.21%), the S&P closed UP +44.36 points (+1.48%) while the NASDAQ closed UP +72.14 points (+0.77%)

 

Pre-open indications follow-up results: 3 HITS < Athersys (ATHX -$0.12), Applied +Genetic Technologies (AGTC +$0.01), Sangamo Therapeutics (SGMO +$0.51) and 3 MISS < AxoGen (AXGN +$0.36), bluebird bio (BLUE -$2.24), Mesoblast (MESO +$0.21), >

 

Henry’omics:

Indexes rose for a second day on Wednesday as markets grew more optimistic about the economy reopening. 

“The market has been making a V-pattern upward and there’s been a tremendous amount of skepticism around that but we are just starting now to see some evidence in the data turning,” said Michael Darda, MKM Partners chief market strategist and chief economist. “Some better than expected housing numbers. As reopening gets underway, virtually all states now we are starting to see activity bounce off of very low levels.” <CNBC>

From the a.m. Data docket: The Mortgage Bankers Association reported a sixth (6th) straight weekly rise in mortgage applications. Data released Tuesday showed new home sales in April topped estimates. Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000.

Stocks’ recent strength — last week the Dow had its best week since early April — still leaves the Dow down more than 12% in 2020. The S&P 500 is off 7.4% for the year and the tech-heavy Nasdaq is up more than 4%.

 

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

  • Wednesday opened negative at 11/23 and 1 flat, stayed negative at the mid-day at 13/22 and closed positive at 20/15;
  • Tuesday opened positive at 27/8, strayed neutral at the mid-day at 17/17 and 1 flat and closed negative at 10/25;
  • Monday- markets closed for holiday

 

Key metrics:

  • Volume was increased with 4 out of the 20-upside having higher than the 3-month average volume and 5 out of the 15-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 20-upside were +0.14% (IONS) to +4.62% (SGMO) while the 15-downside ranged from -0.08% (STML) to -8.73% (FIXX); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), CRISPR Therapeutics (CRSP), bluebird bio (BLUE) and to name the 15 slipping of the 35 covered

Jumping with momentum:

  • Global Blood Therapeutics (GBT), uniQure NV (QURE), Regenxbio (RGNX), Adverum biotechnologies (ADVM), Sangamo Therapeutics (SGMO), Editas Medicine (EDIT) to name a few of the 20 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;
  • Mesoblast (MESO)

 

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

  • Wednesday, the IBB closed up +0.91% and XBI also closed up +0.03%
  • Tuesday the IBB closed down -1.90% and XBI also closed down -2.36%
  • Monday was a market holiday

 

Wednesday’s (top 10) incliners:

  • Global Blood Therapeutics (GBT +$2.41 after Tuesday’s -$1.22, Friday’s +$0.62 and last Thursday’s -$1.60);
  • uniQure NV (QURE +$1.54 after Tuesday’s +$0.35, Friday’s +$0.92 and last Thursday’s +$2.62);
  • Regenxbio (RGNX +$0.82 after Tuesday’s -$1.80);
  • Adverum Biotechnologies (ADVM +$0.58);
  • Sangamo Therapeutics (SGMO +$0.51);
  • Editas Medicine (EDIT +$0.45 after Tuesday’s -$2.69, Friday’s +$0.82, Thursday’s +$0.72 and last Wednesday’s +$1.49);
  • AxoGen (AXGN +$0.36 after Tuesday’s+$1.37, Friday’s -$0.18 and last Thursday’s -$0.14);
  • Vericel (VCEL +$0.30);
  • Mesoblast (MESO +$0.21 after Tuesday’s +$0.83, Friday’s -$0.16 and last Thursday’s -$0.18);
  • BioLife Solutions (BLFS +$0.10 after Tuesday’s +$0.03);

Wednesday’s (bottom 10) decliners:

  • ReNeuron (RENE.L -$5.00 after Tuesday’s -$6.00 and Friday’s +$1.00);
  • Alnylam Pharmaceuticals (ALNY -$3.08 after Tuesday’s -$4.09, Friday’s -$1.34, Thursday’s -$1.59 and last Wednesday’s +$1.04);
  • Ultragenyx (RARE -$2.48);
  • CRISPR Therapeutics (CRSP -$2.41 after Tuesday’s -$3.60, Friday’s +$2.16, Thursday’s +$0.99 and last Wednesday’s +$3.23);
  • bluebird bio (BLUE -$2.24 after Tuesday’s -$2.87);
  • Homology Medicine (FIXX -$1.41 after Tuesday’s +$0.55);
  • Sage Therapeutics (SAGE -$1.39 after Tuesday’s +$0.12 and Friday’s +$0.96);
  • Intellia Therapeutics (NTLA -$1.25 after Tuesday’s -$1.89);
  • Fate Therapeutics (FATE -$0.70 after Tuesday’s -$1.44, Friday’s +$1.69, Thursday’s +$2.55 and last Wednesday’s +$2.13);
  • Cellectis SA (CLLS -$0.51 after Tuesday’s -$1.64);

 

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

  • Wednesday’s percentage (%) of the 20-upside were +0.14% (IONS) to +4.62% (SGMO) while the 15-downside ranged from -0.08% (STML) to -8.73% (FIXX);
  • Tuesday’s percentage (%) of the 10-upside were +0.19% (BLFS) to +17.34% (AXGN) while the 25-downside ranged from -0.30% (RARE) to -15.87% (CLBS);
  • Monday was a holiday;

 

Sentiment and a few daily indicators:

The S&P 500 traded 0.3% higher after briefly trading lower. All 50 states in the U.S. have reopened their economies to some extent. It’s still all about being … careful and masked!

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

  • Wednesday 1.68 million
  • Tuesday 1.66 million
  • Monday was not reported, a holiday but, not for the dying

Wednesday’s death rate escalated to a total of 99,264 after Tuesday’s 98,426 as Monday was a holiday (not reported) <John Hopkins University>

 

Upside volume stats: 

  • Wednesday: 4 out of the 20-upside had higher than the 3-month average volume;
  • Tuesday: 5 out of the 10-upside had higher than the 3-month average volume;
  • Monday: holiday

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.39 points or -1.390% at 27.62
  • Tuesday was down -0.15 points or -0.53% at 28.01,
  • Monday: markets were closed

Downside volume stats:

  • Wednesday: 5 out of the 15-downside had higher than the 3-month average volume;
  • Tuesday: 12 out of the 25-downside had higher than the 3-month average volume;
  • Monday: holiday

Closing flat: 0

 

May

Wednesday closed positive with 15 decliners, 20 advancer and 0 flats

Tuesday closed negative with 25 decliners, 10 advancer and 0 flats

Monday – market closed, holiday

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 watched the sector and the market but, spent my day redoing rock gardens. We all get tired of the spillage of volatility yet, thankfull of the upside trend.

Reiterating, “sometimes it’s better to sit out the session. Do you feel safe enough to travel and congregate in larger groups; I’m still masking everywhere I go – if I go anywhere.”

Another good day to SELL into strength of early optimism!

 

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.