June 11, 2020 6:02pm

Share pricing was capsized by a wave of market data brought on by increasing COVID-19 cases and future economic uncertainties

Pre-open indications: 2 HITs and 3 MISS <who>

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The Dow closed DOWN -1861.82 points (-6.92%), the S&P closed DOWN -188.04 points (-5.89%) while the NASDAQ closed DOWN -567.62 points (-5.27%)

 

Pre-open indications: 2 HITs < Brainstorm Cell Therapeutics (BCLI -$0.71), Fate Therapeutics (FATE -$2.59)> and 3 MISS < Pluristem Therapeutics (PSTI -$0.41), Sage Therapeutics (SAGE -$1.28), Alnylam Pharmaceuticals (ALNY -$1.70)

 

Henry’omics:

Slam, bam and no alakazam …

U.S. stocks convulsed lower, plunging to new depths on Thursday, amid signs of a resurgence of cases of the illness, and as investors digested Wednesday’s depressing economic outlook from the Fed.

  • On Wednesday the Fed’s updated policy statement and projections indicate that it expects a 6.5% contraction by the end of the year on a year-over-year basis, with the unemployment rate ending at 9.3%, well above the Fed’s estimate of the long-run rate forecast of 4.1% <MarketWatch>;
  • In its monetary policy decision, the Fed projected interest rates would remain near zero through 2022 and telegraphed that its pace of asset purchases would remain at minimum at the current rate.

Also, indexes got dug deeper by the number of Americans filing for first-time jobless benefits declined again in the most recent week.

While the Cboe Volatility Index — considered the best fear “gauge” jumped above 40 for the first time since May 4.

After all this, Friday should be a mental health day to rest the spirits of life!

 

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

  • Thursday opened negative, stayed negative at the mid-day at 3/30 and 2 flats, closing negative at 2/31 and 2 flats;
  • Wednesday opened positive at 28/6 and 1 flat, stayed positive at the mid-day at 17/16 and 2 flats, flipping at 2 p.m. to 25/7 and 3 flats, closing negative at 15/17 and 3 flats;
  • 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;

 

Key metrics:

  • Sector volume continued LOW with 1 out of the 2-upside having higher than the 3-month average volume and 10 out of the 31-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 2-upside were +1.42% (MDXG) to +1.90% (SGMO) while the 31-downside ranged from -1.43% (ATHX) to -15.75% (PGEN); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L); Ultragenyx (RARE), bluebird bio (BLUE), CRISPR Therapeutics (CRSP) and Global Blood Therapeutics (GBT) to name a few of the 31 slipping of the 35 covered

Jumping:

  • Sangamo therapeutics (SGMO), MiMedx (Pink sheets: MDXG) to name the only 2 trading up of 35 covered

 

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

  • Thursday, the IBB closed down -5.93% and XBI also closed down -5.53%
  • Wednesday, the IBB closed up +0.32% and XBI also closed up +0.12%
  • 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%

 

Thursday’s (only 2) incliners:

  • Sangamo Therapeutics (SGMO +$0.21);
  • MiMedx (Pink sheets: MDXG +$0.05);

Thursday’s (top 10 of 31 bottoms) decliners:

  • bluebird bio (BLUE -$5.20 after Wednesday’s +$1.55, Tuesday’s -$2.37 and Monday’s -$1.84);
  • ReNeuron (RENE.L -$5.00);
  • Ultragenyx (RARE -$4.85 after Wednesday’s -$0.54, Tuesday’s +$1.18 and Monday’s +$0.75);
  • Global Blood Therapeutics (GBT -$4.01 after Wednesday’s -$0.34, Tuesday’s +$1.06 and Monday’s +$2.26);
  • Alnylam Pharmaceuticals (ALNY -$3.80 after Wednesday’s -$0.08 after Tuesday’s -$0.65 and Monday’s +$2.85)
  • CRISPR Therapeutics (CRSP -$3.33 after Wednesday’s -$0.23, Tuesday’s +$2.73);
  • Fate Therapeutics (FATE -$3.14);
  • Regenxbio (RGNX -$2.68 after Wednesday’s -$0.22 and Tuesday’s -$0.41);
  • Adverum Biotechnologies (ADVM -$2.55 after Wednesday’s +$0.44 and Tuesday’s +$0.55);
  • Editas Medicine (EDIT -$2.48 after Wednesday’s +$0.68 and Tuesday’s -$0.31);

Closing flat: 2 –Biostage (BSTG) and Stemline Therapeutics (STML – being acquired)

 

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

  • Thursday’s percentage (%) of the 2-upside were +1.42% (MDXG) to +1.90% (SGMO) while the 31-downside ranged from -1.43% (ATHX) to -15.75% (PGEN); 
  • Wednesday’s percentage (%) of the 15-upside were +0.15% (IONS) to +25.86% (PGEN +$0.90 to $4.38) while the 17-downside ranged from -0.06% (STML) to -6.35% (ADRO); 
  • 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); 

 

Sentiment and a few daily indicators:

Confirmed coronavirus cases in the U.S. topped two (2) million as the virus begins to spread more rapidly in some states that aggressively reopened, such as Texas, Arizona, North Carolina and others.

  • While health officials expected cases to rise as states reopened, the focus now is on ensuring that surges don’t boil over into uncontrolled outbreaks.

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

  • Thursday 2 million
  • Wednesday 1.98 million
  • Tuesday 1.96 million
  • Monday 1.95 million

Thursday’s death rate escalated to a total of 112,924 after 112,402, Tuesday’s 111,375 after Monday’s 110,734 <Johns Hopkins University>

 

Upside volume stats: 

  • Thursday: 1 out of the 2-upside had higher than the 3-month average volume;
  • Wednesday: 4 out of the 15-upside had higher than the 3-month average volume;
  • 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;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up at +13.32 points or +48.31% at 40.81;
  • Wednesday was flat at 0.00 points or 0.00% at 27.57;
  • Tuesday was up +1.76 points or +6.82% at 27.57;
  • Monday was up +1.29 points or +5.26% at 25.81;

Downside volume stats:

  • Thursday: 10 out of the 31-downside had higher than the 3-month average volume;
  • Wednesday: 4 out of the 17-downside had higher than the 3-month average volume;
  • 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;

 

June

Thursday closed negative with 2 advancers, 31 decliners and 2 flats

Wednesday closed negative with 15 advancers, 17 decliners and 3 flats

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 uptick of the coronavirus and the weak economic outlook as articulated by the Fed’s Powell “kicked” the indexes like a mule.

Actually, I believe markets used the data as an excuse to refrain from newer highs.

Read a good one, “The fear of missing out – “FOGO” has been replaced with the “fear of going out,” thanks to the coronavirus.” It should be noted that the word “FOGO” also means “fire” in Portuguese.

Testing will be the key to short-term growth as well as the hope of a treatment.

 

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.