June 3, 2020 5:48pm

Cause is the thing that makes other things happen. Effect refers to what results: the Dow reclaims heights; services data was less bad – the question through the haze of teargas and pepper spray is the economy near a bottom?

Pre-open indications follow-up results: 3 HITs and 1 MISS <who>

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The Dow closed UP +527.24 points (+2.05%), the S&P closed UP +42.05 points (+1.36%) while the NASDAQ closed UP +74.54 points (+0.78%)

 

Pre-open indications follow-up results: 3 HITs < sell into strength – Athersys (ATHX -$0.21), CRISPR Therapeutics (CRSP -3.41); maintaining buy – Sage Therapeutics (SGMO +$1.20)> and 1 MISS < Global Blood Therapeutics (GBT -$1.97)>

 

Henry’omics:

Indexes moved higher as equities are off to a very good start in June.

Private-sector employment shed a total of 2.76 million jobs in May; ADP reported well below forecasts which expected a loss of 8.66 million. In April, the private sector shed 19.56 million jobs.

Small caps outperformed their large-cap counterparts, with the Russell 2000 rallying 2.4%.

The S&P 500 is up more than 2% so far in June, bringing its gain from its pandemic low in March to more than 42%.

I’m still WORRIED about the effect of PPP loans and their affect upon the economy to the future – re taxes.

There are a LOT of companies taking monies that don’t deserve the ungodly amounts, its all about being in collusion with their bankers – call me WRONG, I dare you!

 

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

  • Wednesday opened positive at 18/14 and 3 flats, strayed negative at the mid-day at 15/18 and 2 flats, closing negative at 9/25 and 1 flat;
  • Tuesday opened negative at 13/30 and 2 flats, stayed negative at the mid-day at 13/30 and 2 flats, closing positive at 21/13 and 1 flat;
  • Monday opened positive at 30/13 and 2 flats, stayed positive at the mid-day at 21/12 and 2 flats, closing positive at 23/10 and 2 flats;

 

Key metrics:

  • Volume was WEAK with 3 out of the 9-upside having higher than the 3-month average volume and 3 out of the 25-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 9-upside were +0.19% (ADRO) to +10.22% (NTLA) while the 25-downside ranged from -0.05% (BLUE) to -16.92% (PGEN); 

 

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), uniQure NV (QURE), Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY) and Global Blood therapeutics (GBT) to name a few of the 25 slipping of the 35 covered

Jumping with momentum:

  • ReNeuron (RENE.L), Intellia Therapeutics (NTLA), Sage Therapeutics (SAGE), AxoGen (AXGN), Brainstorm cell therapeutics (BCLI) and Pluristem (PSTI) to name a few of the 9 trading up of 35 covered

 

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

  • Wednesday, the IBB closed down -1.32% and XBI also closed down -1.53%
  • Tuesday, the IBB closed up +0.32% and XBI also closed up +1.38%
  • Monday, the IBB closed down -0.47% and XBI also closed up +0.53%

 

Wednesday’s (only 9) incliners:

  • ReNeuron (RENE.L +$2.50 after Tuesday’s -$7.50);
  • Intellia Therapeutics (NTLA +$2.07 <offering> after Tuesday’s -$0.66 and Monday’s +$3.41);
  • Sage Therapeutics (SAGE +$1.20 after Tuesday’s -$0.43 and Monday’s-$0.49);
  • AxoGen (AXGN +$0.58);
  • Brainstorm Cell Therapeutics (BCLI +$0.23);
  • Stemline Therapeutics (STML +$0.21);
  • Pluristem (PSTI +$0.21 after Tuesday’s -$0.26 and Monday’s -$0.09);
  • Caladrius Biosciences (CLBS +$0.12);
  • Aduro Biotech (ADRO +$0.005 after Tuesday’s -$0.80);

Wednesday’s (bottom 10 of 13) decliners:

  • CRISPR Therapeutics (CRSP -$3.41 after Tuesday’s +$1.77 and Monday’s +$2.01);
  • uniQure NV (QURE -$3.08);
  • Ultragenyx (RARE -$2.59 after Tuesday’s +$5.49 and Monday’s +$1.14);
  • Global Blood Therapeutics (GBT -$1.97);
  • Alnylam Pharmaceuticals (ALNY -$1.57 after Tuesday’s +$5.25 and Monday’s -$1.70);
  • Cellectis SA (CLLS (-$1.31);
  • Fate Therapeutics (FATE -$1.09);
  • Ionis Pharmaceuticals (IONS -$0.85 after Tuesday’s +$0.83 and Monday’s +$0.63);
  • Editas Medicine (EDIT -$0.76 after Tuesday’s +$0.80);
  • Precision (PGEN -$0.67 after Tuesday’s +$1.80);

 

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

  • Wednesday’s percentage (%) of the 9-upside were +0.19% (ADRO) to +10.22% (NTLA) while the 9-downside ranged from -0.05% (BLUE) to -16.92% (PGEN); 
  • Tuesday’s percentage (%) of the 21-upside were +0.20% (GBT) to +83.33% (PGEN +$1.80) while the 10-downside ranged from -0.06% (QURE) to -23.74% (ADRO); 
  • Monday’s percentage (%) of the 23-upside were +0.28% (MDXG) to +19.47% (NTLA) while the 10-downside ranged from -0.42% (AGTC) to -2.31% (FATE);  

 

Sentiment and a few daily indicators:

Stocks rose sharply on Wednesday on the back of better-than-expected economic data, which bolstered optimism over the recovery from coronavirus-led shutdowns.

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

  • Wednesday 1.84 million
  • Tuesday 1.81 million
  • Monday 1.79 million

Wednesday’s death rate escalated to a total of 106,636 after Tuesday’s 105,147 and Monday’s 104,833 <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 3 out of the 9-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 21-upside had higher than the 3-month average volume;
  • Monday: 5 out of the 23-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.18 points or -4.40% at 25.66;
  • Tuesday was down -1.39 points or -4.92% at 26.84;
  • Monday was up +0.68 points or +2.40% at 28.17;

Downside volume stats:

  • Wednesday: 3 out of the 25-downside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 13-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 10-downside had higher than the 3-month average volume;

Closing flat: 1 - Biostage (BSTG)

 

June

Wednesday closed negative with 9 advancers, 25 decliners and 1 flat

Tuesday closed positive with 21 advancers, 13 decliners and 1 flat

Monday (6/1) positive with 23 advancers,10 decliners and 2 flats

 

The Bottom line:  From the title “cause and effect”, It is the what happened next in the text that results from a preceding cause. To put it concisely, cause is the why something happened and effect is the what happened.

The market thinks the worst is behind us and the economy is going to turn around.

Stocks have been left hanging on the vine after sell-offs followed by upswings initiating yet other sell-offs as the COVID-19 pandemic forced the “our” universe – the RegMed/Cell and Gene therapy sector into the fog.

Yet, we continue to show signs of life. The algorithms and electronic trading are paying for its sins of upheaval, but investors should look before they rotate into the next beat-down of equities.

Are you preparing for Q2 results, especially those companies that are dependent on sales and especially those who have extremely LOW cash balances that are close to BANKRUPCY!

 

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.