June 15, 2020 7:15pm

The RegMed/Cell and Gene therapy sector rallied after a negative open

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The Dow closed UP +157.62 points (+0.62%), the S&P closed UP +25.28 points (+0.83%) while the NASDAQ closed UP +137.21 points (+1.43%)

 

Henry’omics:

Indexes jumped on Monday, recovering from earlier losses, as the Federal Reserve announced further measures to support the market amid the coronavirus pandemic.

Earlier in the day, the major stock averages had fallen sharply. The Dow traded more than 760 points lower before rebounding and the S&P 500 (-2.5%) and Nasdaq (-1.9%) fell alongside.

The Fed said it would buy individual corporate bonds, marking a broader approach to corporate bond buying; as it had previously had indicated that it eventually would buy bonds on the primary market, but Monday’s announcement marked an expansion of that into the secondary market. This latest announcement also shows the Fed will continue to support credit markets during the coronavirus.” <CNBC>

 

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

  • Monday opened negative at 13/21 and 1 flat, jumped positive at the mid-day at 25/9 and 1 flat, closing positive at 28/5 and 2 flats;
  • Friday opened positive at 32/1 and 2 flats, stayed positive at the mid-day at 21/11 and 3 flats, closing positive at 25/8 and 2 flats;

 

Key metrics:

  • Sector volume continued LOW with 7 out of the 28-upside having higher than the 3-month average volume and 1 out of the 5-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 28-upside were +0.67% (SLDB) to +17.36% (BCLI) while the 5-downside ranged from -0.09% (SGMO) to -3.85% (RENE.L); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Ionis Pharmaceuticals (IONS), bluebird bio (BLUE), Sangamo Therapeutics (SGMO) and Verastem (VSTM) to the 5 slipping of the 35 covered

Jumping share pricing:

  • Alnylam Pharmaceuticals (ALNY), CRISP Therapeutics (CRSP), Adverum Biotechnologies (ADVM), uniQure NV (QURE) to name a few of the 28 trading up of 35 covered

 

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

  • Monday, the IBB closed +1.99% and XBI also closed up +2.82%
  • Friday, the IBB closed up +0.53 % and XBI also closed up +1.27 %

 

Monday’s (top 10 of 28) incliners:

  • Alnylam Pharmaceuticals (ALNY +$2.99 after Friday’s -$0.52, Thursday’s -$3.80, Wednesday’s -$0.08 after Tuesday’s -$0.65 and Monday’s +$2.85)
  • CRISP Therapeutics (CRSP +$2.56);  
  • Adverum Biotechnologies (ADVM +$2.39 after Friday’s -$0.01, Thursday’s +$2.55, Wednesday’s +$0.44 and Tuesday’s +$0.55);
  • uniQure NV (QURE +$2.12 after Friday’s +$1.27);
  • Editas Medicine (EDIT +$1.95 after Friday’s +$1.98, Thursday’s -$2.48, Wednesday’s +$0.68 and Tuesday’s -$0.31);
  • Regenxbio (RGNX +$1.64 after Friday’s +$1.14, Thursday’s -$2.68, Wednesday’s -$0.22 and Tuesday’s -$0.41);
  • BioLife Solutions (BLFS +$1.48);
  • Brainstorm Cell Therapeutics (BCLI +$1.47 after Friday’s -$0.10);
  • Fate Therapeutics (FATE +$1.16 after Friday’s -$3.14);
  • Sage Therapeutics (SAGE +$1.09 after Friday’s +$1.51);

Monday’s (only 5) decliners:

  • ReNeuron (RENE.L) -$5.00)
  • Ionis Pharmaceuticals (IONS -$1.16 after Friday’s +$1.86);
  • bluebird bio (BLUE -$0.39 after Friday’s +$0.81, Thursday’s -$5.20, Wednesday’s +$1.55, Tuesday’s -$2.37 and last Monday’s -$1.84);
  • Sangamo Therapeutics (SGMO -$0.01 after Friday’s -$0.28 and Thursday’s +$0.21);
  • Verastem (VSTM -$0.01);

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

 

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

  • Monday’s percentage (%) of the 28-upside were +0.67% (SLDB) to +17.36% (BCLI) while the 5-downside ranged from -0.09% (SGMO) to -3.85% (RENE.L); 
  • Friday’s percentage (%) of the 25-upside were +0.18% (GBT) to +12.20% (PGEN) while the 8-downside ranged from -0.05% (ADVM) to -2.53% (MDXG); 

 

Sentiment and a few daily indicators:

Sentiment and the indexes were saved by the Fed announcing a broader approach to corporate bond buying.

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

  • Monday 2.09 million
  • Friday 2.04 million

Monday’s death rate escalated to a total of 115,732 after Friday’s 114,669 and last Monday’s 110,734 <Johns Hopkins University>

 

Upside volume stats: 

  • Monday: 7 out of the 28-upside had higher than the 3-month average volume;
  • Friday: 8 out of the 25-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -1.69 points or -4.68% at 34.40;
  • Friday was up down -4.70 points or -11.52% at 36.09;

Downside volume stats:

  • Monday: 1 out of the 5-downside had higher than the 3-month average volume;
  • Friday: 2 out of the 8-downside had higher than the 3-month average volume;

 

June

Monday (6/15) closed positive with 28 advancers, 5 decliners and 2 flats

Friday closed positive with 25 advancers, 8 decliners and 2 flats

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:  Monday’s action followed a big pullback last week triggered by rising fears of a resurgence in the virus as well as investors’ profit-taking after the massive comeback.

The Fed’s announcement stimulated market upside action … while “our’ universe jumped the fence on being oversold.

I’d worry over the streaks and peaks!

 

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.