June 9, 2020 5:23pm

Yet, the risk-on trade really is gaining traction

Pre-open indications” 7 HITs and 2 MISS <who>

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The Dow closed DOWN -300.14 points (-1.09%), the S&P closed DOWN -25.21 points (-0.78%) while the NASDAQ closed UP +29.01 points (+0.29%)

 

Pre-open indications:  7 HITs < Brainstorm Cell Therapeutics (BCLI +$0.75), Fate Therapeutics (FATE +$4.45), Global Blood Therapeutics (GBT +$1.00), CRISPR Therapeutics (CRSP +$2.73), ReNeuron (RENE.L +$0.00), Precision (PGEN -$0.24), Sage Therapeutics (SAGE -$1.47)>  and 2 MISS < bluebird bio (BLUE -$2.46), Pluristem (PSTI -$0.27)>

 

Henry’omics:

The Dow slipped, the S&P dipped and the NASDAQ zipped.

Today’s sector results were all about gaining height and at the same time, giving back some of the gains we’ve seen in “our” universe better known “names”.

Although I continue to ponder whether the recovery moves have gone too far, too fast considering (yesterday I used the “Fast and Furious” label) the economy is still focused on how to safely reopen!

Shares of Fate Therapeutics (FATE) were up 15.58% to $32.72 after FATE initiated a secondary offering priced at $28.31 and a private placement with Johnson & Johnson (NYSE: JNJ). After subtracting underwriting discounts and commissions and other expenses, Fate expects to net about $164.2 million. In addition to the public offering, FATE will also sell $50 million worth of shares to JNJ at the same offering price of $28.31.

 

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

  • Tuesday opened positive at 18/15 and 2 flats, stayed positive at the mid-day at 17/16 and 2 flats, closing negative at 14/19 and 2 flats;
  • Monday opened positive at 17/16 and 2 flats, stayed positive at the mid-day at 23/10 and 2 flats, closing positive at 22/9 and 4 flats;
  • Friday opened positive at 33/1 and 1 flat, swung neutral at the mid-day at 17/17 and 1 flat, closing negative at 16/19 and 0 flat;

 

Key metrics:

  • Volume continued WEAK with 4 out of the 14-upside having higher than the 3-month average volume and 3 out of the 19-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 14-upside were +0.19% (AGTC) to +15.58% (FATE) while the 19-downside ranged from -0.16% (VYGR) to -8.70% (ADRO); 

 

Hammered in today’s market:

  • bluebird bio (BLUE), Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), AxoGen (AXGN), Regenxbio (RGNX), Ionis Pharmaceuticals (IONS) to name a few of the 19 slipping of the 35 covered

Jumping with momentum:

  • Fate Therapeutics (FATE), CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Global Blood therapeutics (GBT), uniQure NV (QURE) and Brainstorm cell Therapeutics (BCLI) to name a few of the 14 trading up of 35 covered

 

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

  • Tuesday, the IBB closed down -0.14% and XBI also closed down -0.17%
  • Monday, the IBB closed up +1.33% and XBI also closed up +1.85%
  • Friday, the IBB closed down -0.07% and XBI also closed up +0.81%

 

Tuesday’s (top 10 of 14) incliners:

  • Fate Therapeutics (FATE +$4.41)
  • CRISPR Therapeutics (CRSP +$2.73);
  • Ultragenyx (RARE +$1.18 after Monday’s +$0.75);
  • Global Blood therapeutics (GBT +$1.06 after Monday’s +$2.26 and Friday’s-$1.41);
  • uniQure NV (QURE +$1.05 after Monday’s +$2.65 after Friday’s -$3.00);
  • Brainstorm Cell Therapeutics (BCLI +$0.74 after Monday’s -$0.62 after Friday’s +$0.58);
  • Adverum Biotechnologies (ADVM +$0.55);
  • Intellia Therapeutics (NTLA +$0.23 after Monday’s-$0.35 and Friday’s -$0.30);
  • Sangamo Therapeutics (SGMO +$0.17 after Monday’s -$0.11 and Friday’s -$0.26);
  • Mesoblast (MESO+$0.17);

Tuesday’s (top 10 of 19 bottoms) decliners:

  • bluebird bio (BLUE -$2.37 after Monday’s -$1.84 after Friday’s +$4.03);
  • Sage Therapeutics (SAGE -$1.47 after Monday’s +$1.73 after Friday’s +$1.10);
  • Alnylam Pharmaceuticals (ALNY -$0.65 after Monday’s +$2.85 and Friday’s -$4.34)
  • AxoGen (AXGN -$0.61 after Monday’s -$0.08 after Friday’s +$0.78);
  • Regenxbio (RGNX -$0.41);
  • BioLife Solutions (BLFS -$0.40);
  • Ionis Pharmaceuticals (IONS -$0.35 after Monday’s +$1.27 and Friday’s +$1.63);
  • Editas Medicine (EDIT -$0.31);
  • Pluristem (PSTI -$0.27 after Monday’s -$0.36 after Friday’s -$0.14);
  • Precision (PREN -$0.24 after Monday’s +$0.51);

 

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

  • Tuesday’s percentage (%) of the 14-upside were +0.19% (AGTC) to +15.58% (FATE) while the 19-downside ranged from -0.16% (VYGR) to -8.70% (ADRO); 
  • Monday’s percentage (%) of the 22-upside were +0.08% (MESO) to +21.05% (ADRO) while the 9-downside ranged from -0.74% (AXGN) to -6.83% (BCLI); 
  • Friday’s percentage (%) of the 16-upside were +0.02% (RARE) to +11.82% (ADVM) while the 19-downside ranged from -0.32% (FIXX) to -6.47% (CLBS);

 

Sentiment and a few daily indicators:

The Nasdaq rallied to a record high on Tuesday, briefly breaking above 10,000 for the first time while the Dow slid and the S&P dropped.

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

  • Tuesday 1.96 million
  • Monday 1.95 million
  • Friday 1.88 million

Tuesday’s death rate escalated to a total of 111,375 after Monday’s 110,734 and Friday’s 108,768 <Johns Hopkins University>

 

Upside volume stats: 

  • Tuesday: 4 out of the 14-upside had higher than the 3-month average volume;
  • Monday: 4 out of the 22-upside had higher than the 3-month average volume;
  • Friday: 5 out of the 16-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.76 points or +6.82% at 27.57;
  • Monday was up +1.29 points or +5.26% at 25.81;
  • Friday was down -1.29 points or -5% at 24.52;

Downside volume stats:

  • Tuesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Monday: 4 out of the 9-downside had higher than the 3-month average volume;
  • Friday: 5 out of the 19-downside had higher than the 3-month average volume;

Closing flat: 2 –Biostage (BSTG) and ReNeuron (RENE.L)

 

June

Tuesday closed negative with 14 advancers, 19 decliners and 2 flats

Monday (6/8) closed positive with 22 advancers, 9 decliners and 4 flats

Friday closed negative with 16 advancers, 19 decliners and 0 flat

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:  The market’s hot streak over the last two months is in large part thanks to confidence about the beginnings of the reopening of the U.S. economy and the gifting, loaning and bungling of government stimulus.

Right again, always maintain a perspective and know “how to get out of Dodge” – (a metaphor)!

 

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.