June 17, 2020 5:48pm

Or from yesterday, “While valuations are in flux, some deflated, others stretched until investors are driven away by poor data, lured elsewhere or algorithmic hit jobs”

Pre-open indications: 2 HITs and 0 MISS

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The Dow closed DOWN -170.37 points (-0.65%), the S&P closed DOWN -11.25 points (-0.36%) while the NASDAQ closed UP +14.66 points (+0.15%)

 

Pre-open indications: 2 HITs <ReNeuron (RENE.L +$3.00), CRISPR Therapeutics (CRSP +$0.25)> and 0 MISS

 

Henry’omics:

The sector and markets struggled for direction on Wednesday following a big rally in the previous session that was fueled by a growing belief the worst may be over.

The Dow traded more than 100 points lower with less than an hour left of trading; the S&P 500 dipped 0.2% while the Nasdaq rose +0.3%.

 

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

  • Wednesday opened positive at 24/9 and 3 flats, slipped at 10:30 a.m.to the downside at 11/22 and 2 flats, continued negative at the mid-day at 15/18 and 2 flats, flipped positive at 1 p.m. at 20/13 and 2 flats closing negative at 13/21 and 1 flat;
  • Tuesday opened negative at 28/5 and 2 flats, strayed positive at the mid-day at 29/5 and 1 flat, closing positive at 23/8 and 4 flats;
  • Monday opened negative at 13/21 and 1 flat, strayed positive at the mid-day at 25/9 and 1 flat, closing positive at 28/5 and 2 flats;

 

Key metrics:

  • Sector volume continued LOW with 3 out of the 13-upside having higher than the 3-month average volume and 4 out of the 21-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 13-upside were +0.09% (CRSP) to +32.58% (Pink sheets: MDXG) while the 21-downside ranged from -0.34% (SAGE) to -10.02% (PGEN); 

 

Hammered in today’s market:

  • Global Blood Therapeutics (GBT), Editas Medicine (EDIT), BioLife Solutions (BLFS), Regenxbio (RGNX) and Brainstorm Cell Therapeutics (BCLI) to name the 13 slipping of the 35 covered

Jumping with momentum:

  • Alnylam Pharmaceuticals (ALNY), ReNeuron (RENE.L), bluebird bio (BLUE), MiMedx (Pink sheets: MDXG) and Ionis Pharmaceuticals (IONS) to name a few of the 21 trading up of 35 covered

 

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

  • Wednesday, the IBB closed +0.37% and XBI also closed up +0.08%
  • Tuesday, the IBB closed +1.83% and XBI also closed up +1.54%
  • Monday, the IBB closed +1.99% and XBI also closed up +2.82%

 

Wednesday’s (top 10 of 13) incliners:

  • Alnylam Pharmaceuticals (ALNY +$4.41 after Tuesday’s +$3.88 and Monday’s +$2.99)
  • ReNeuron (RENE.L +$3.00 after Tuesday’s +$11.00 and Monday’s -$5.00)
  • bluebird bio (BLUE +$1.36 after Tuesday’s -$0.44 and Monday’s -$0.39);
  • MiMedx (Pink sheets: MDXG+$1.15 after Tuesday’s -$0.12);
  • uniQure NV (QURE +$0.98 after Tuesday’s -$0.17 and Monday’s +$2.12);
  • Mesoblast (MESO +$0.83);
  • Ultragenyx (RARE +$0.69 after Tuesday’s +$1.59);
  • Ionis Pharmaceuticals (IONS +$0.65 after Tuesday’s -$0.21 and Monday’s -$1.16);
  • Fate Therapeutics (FATE +$0.17 after Tuesday’s -$0.33 and Monday’s +$1.16);
  • Homology Medicine (FIXX +$0.08);

Wednesday’s (bottom 10 of 21) decliners:

  • Global Blood Therapeutics (GBT -$2.64 after Tuesday’s +$4.27);
  • Editas Medicine (EDIT -$0.99 after Tuesday’s +$1.94 and Monday’s +$1.95);
  • BioLife Solutions (BLFS -$0.73);
  • Brainstorm Cell Therapeutics (BCLI -$0.54);
  • Sangamo Therapeutics (SGMO -$0.50);
  • Precigen (PGEN -$0.45);
  • Regenxbio (RGNX -$0.43 after Tuesday’s +$0.74 and Monday’s+$1.64);
  • Voyager Therapeutics (VYGR -$0.38);
  • Intellia Therapeutics (NTLA -$0.30);
  • Vericel (VCEL -$0.27 after Tuesday’s -$0.03);

Closing flat: 1 - Stemline Therapeutics (STML – being acquired)

 

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

  • Wednesday’s percentage (%) of the 13-upside were +0.09% (CRSP) to +32.58% (Pink sheets: MDXG) while the 21-downside ranged from -0.34% (SAGE) to -10.02% (PGEN); 
  • Tuesday’s percentage (%) of the 23-upside were +0.46% (AXGN) to +8.80% (RENE.L) while the 8-downside ranged from -0.20% (VCEL) to -5.31% (ATHX); 
  • 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);  

 

Sentiment and a few daily indicators:

Concerns about the coronavirus linger … a good wording says it well, “The attitude of many Americans seems to be that they are done with the coronavirus, but the coronavirus is not done with us,” Marc Odo, portfolio manager at Swan Global Investments.

“The large run up in the market was predicated upon everything going right and a return to normal in short order. However, the regional spikes in infections is challenging that optimism.”

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

  • Wednesday 2.14 million
  • Tuesday 2.11 million
  • Monday 2.09 million

Wednesday’s death rate escalated to a total of 117,129 after Tuesday’s 116,341 and Monday’s 115,732 and last Monday’s 110,734 <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 3 out of the 13-upside had higher than the 3-month average volume;
  • Tuesday: 6 out of the 23-upside had higher than the 3-month average volume;
  • Monday: 7 out of the 28-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.20 points or -0.59% at 33.47;
  • Tuesday was down -0.73 points or -2.12% at 33.67;
  • Monday was down -1.69 points or -4.68% at 34.40;

Downside volume stats:

  • Wednesday: 4 out of the 21-downside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 8-downside had higher than the 3-month average volume;
  • Monday: 1 out of the 5-downside had higher than the 3-month average volume;

 

June

Wednesday closed negative with 13 advancers, 21 decliners and 1 flat

Tuesday closed positive with 23 advancers, 8 decliners and 4 flats

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:  I had asked last night, "are we trading into an electronic trading algorithmic trap"?

The scenario rang true, as the peaks and streaks ended up falling into slowly deepening quicksand.

 

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.