June 4, 2020 6:01pm

Underperformance is beset by sentiment spoilage  

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

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The Dow closed UP +11.93 points (+0.05%), the S&P closed DOWN -10.52 points (-0.34%) while the NASDAQ closed DOWN -67.10 points (-0.69%)

 

Pre-open indications follow-up results: 1 hit <Pluristem (PSTI -$0.03) and 1  MISS < Applied Genetic Technologies (AGTC +$0.12)>

 

Henry’omics:

Re the title, what did I say this a.m. – “you know what they say about highs, they only last so long? The risk to the market right now is exuberance … June will tell us whether the current trend continues; I’d rather profit in my pocket than at risk on the table”

Indexes were lower on Thursday as markets grappled with disappointing jobs data and more central bank stimulus after a rally that started the month.

  • The Labor Department said 1.877 million Americans filed for unemployment benefits last week, topping a Dow Jones estimate of 1.775 million. Continuing jobless claims rose sharply, nearly reaching 21.5 million.

The major averages are still up on track for solid weekly gains despite Thursday’s drop. The Dow is up 3.5% week to date while the S&P 500 has gained 2.2%. The Nasdaq has advanced 1.3% this week.  released a day ahead of the department’s monthly jobs report.

 

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

  • Thursday opened negative at 16/18 and 1 flat, stayed negative at the mid-day at 14/19 and 2 flats, closing negative at 5/30 and 0 flat;
  • 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 1 out of the 5-upside having higher than the 3-month average volume and 6 out of the 30-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 5-upside were +2.76% (BLUE) to +6.64% (BSTG +0.17 with 1.430 shares) while the 30-downside ranged from -0.31% (BLFS) to -8.35% (ADRO);

 

Hammered in today’s market:

  • Aduro Biotech (ADRO), Intellia Therapeutics (NTLA), Solid Biosciences (SLDB), Cellectis SA (CLLS) and AxoGen (AXGN) to name a few of the 30 slipping of the 35 covered

Jumping with momentum:

  • bluebird bio (BLUE), Applied Genetic Technologies (AGTC), Bellicum Pharmaceuticals (BLCM), Brainstorm Cell Therapeutics (BCLI) and Biostage (BSTG) to name a few of the 5 trading up of 35 covered

 

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

  • Thursday, the IBB closed down -0.91% and XBI also closed down -1.79%
  • 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%

 

Thursday’s (only 5) incliners:

  • bluebird bio (BLUE +$1.80);
  • Bellicum Pharmaceuticals (BLCM +$0.50);
  • Brainstorm Cell Therapeutics (BCLI +$0.37 after Wednesday’s +$0.23);
  • Applied Genetic Technologies (AGTC +$0.20);
  • Biostage (BSTG +0.17 or +8.64% with 1.430 shares traded)

Thursday’s (bottom 10 of 30) decliners:

  • Aduro Biotech (ADRO -$0.21 after Wednesday’s +$0.005 and Tuesday’s -$0.80);
  • Intellia Therapeutics (NTLA -$1.69 after Wednesday’s +$2.07 <offering>, Tuesday’s -$0.66 and Monday’s +$3.41);
  • Solid Biosciences (SLDB -$0.13);
  • Cellectis SA (CLLS (-$0.70 after Wednesday’s -$1.31);
  • AxoGen (AXGN -$0.41 after Wednesday’s +$0.58);
  • Alnylam Pharmaceuticals (ALNY -$5.35 after Wednesday’s -$1.57, Tuesday’s +$5.25 and Monday’s -$1.70);
  • Ultragenyx (RARE -$2.60 after Wednesday’s -$2.59, Tuesday’s +$5.49 and Monday’s +$1.14);
  • Global Blood Therapeutics (GBT -$2.04 after Wednesday’s -$1.97);
  • Adverum Biotechnologies (ADVM -$0.59);
  • Athersys (ATHX -$0.08);

 

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

  • Thursday’s percentage (%) of the 5-upside were +2.76% (BLUE) to +6.64% (BSTG +0.17 with 1.430 shares) while the 30-downside ranged from -0.31% (BLFS) to -8.35% (ADRO);
  • Wednesday’s percentage (%) of the x-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:

Sentiment declined as the sector gave back some of the gains attained (and lost) in May and for June, as markets grappled with disappointing jobs data and a late-day sell-off in tech shares.

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

  • Thursday 1.85 million
  • Wednesday 1.84 million
  • Tuesday 1.81 million
  • Monday 1.79 million

Thursday’s death rate escalated to a total of 107,175 after Wednesday’s 106,636, Tuesday’s 105,147 and Monday’s 104,833 <Johns Hopkins University>

 

Upside volume stats: 

  • Thursday: 1 out of the 5-upside had higher than the 3-month average volume;
  • 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:

  • Thursday was up +0.15 points or +0.58% at 25.81;
  • 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:

  • Thursday: 6 out of the 30-downside had higher than the 3-month average volume;
  • 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: 0

 

June

Thursday closed negative with 5 advancers, 30 decliners and 0 flat

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:  I NEVER sidle-up to extremes – investors are looking at the worst data – virus pandemic and the highest unemployment in MY lifetime. Yet, here we see … all-time highs

That’s WHY we need to step back as there seems to be a lack of confidence as rotations keep rolling!

There are days to keep your wallet i.e. portfolio in the desk draw.

It’s the skeptic in me …

 

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.