June 19, 2020 6:49pm

RegMed/Cell and Gene therapy stocks started the day neutral and ended closing positive with help from the “quadruple witching” in the last hour of the session

The week in review …

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The Dow closed DOWN -208.64 points (-0.80%), the S&P closed DOWN -17.60 points (-0.56%) while the NASDAQ closed barely UP +3.17 points (+0.03%)

 

Henry’omics:

Gains, pains and strains – the story for today!

Trading was volatile on Friday ahead of the S&P 500′s first rebalancing of 2020 which is usually associated with choppier trading as index and exchange-traded funds tracking the S&P 500 have to adjust for the benchmark’s changes.

  • It also coincided with the so-called quadruple witching, when options and futures on indexes and stocks expire.

The Dow was down after gaining as much as 371 points earlier in the session. The S&P 500 traded lower while the Nasdaq dipped.

For the week, the major averages were on pace to post their fourth weekly gains in five.

  • The Dow and S&P 500 were each up at least 1% week to date while the Nasdaq has risen 3.5%. Those gains came after a record surge in U.S. retail sales and the Fed announcing it will buy individual corporate bonds.

And so, the week ended on a positive note, even with the Friday declines!

 

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

  • Friday opened neutral at 16/16 and 3 flats, swayed positive at the mid-day at 18/15 and 2 flats closing positive at 20/13 and 2 flats;
  • Thursday opened positive at 19/15 and 1 flat, continued positive at the mid-day at 18/15 and 2 flats closing positive at 20/13 and 2 flats;
  • Wednesday opened positive at 24/9 and 3 flats, was negative at the mid-day at 15/18 and 2 flats, closing negative at 13/21 and 1 flat;
  • Tuesday opened negative at 28/5 and 2 flats, stayed 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, stayed positive at the mid-day at 25/9 and 1 flat, closing positive at 28/5 and 2 flats;

 

Key metrics: volume in the sector stepped-up dramatically:

  • Sector volume INCREASED with 14 out of the 18-upside having higher than the 3-month average volume and 9 out of the 13-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 18-upside were +0.15% (QURE) to +20.53% (PGEN) while the 13-downside ranged from -0.07% (VCEL) to -31.36% (ATHX); 

 

Hammered in today’s market:

  • Fate Therapeutics (FATE), Athersys (ATHX), Sangamo Therapeutics (SGMO), Homology Medicine (FIXX), MiMedx (Pink sheets: MDXG) to name a few the 13 slipping of the 35 covered

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE), Global Blood Therapeutics (GBT), CRISPR Therapeutics (CRSP), and Cellectis SA (CLLS) to name a few of the 18 trading up of 35 covered

 

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

  • Friday, the IBB closed up +3.27% and XBI also closed up +2.83%
  • Thursday, the IBB closed up +0.50% and XBI also closed up +1.07%
  • 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%

 

Friday’s (top 10 of 20) incliners:

  • Alnylam Pharmaceuticals (ALNY +$8.72 after Thursday’s +$5.32, Wednesday’s +$4.41, Tuesday’s +$3.88 and Monday’s +$2.99)
  • Ultragenyx (RARE +$5.74 after Thursday’s +$0.99, Wednesday’s +$0.69 and Tuesday’s +$1.59);
  • Global Blood Therapeutics (GBT +$3.35);
  • CRISPR Therapeutics (CRSP +$1.74 after Thursday’s +$1.01);
  • Cellectis SA (CLLS +$1.71 after Thursday’s -$0.59);
  • Precigen (PGEN +$0.85);
  • Ionis Pharmaceuticals (IONS +$0.76 after Thursday’s +$0.54, Wednesday’s +$0.65 after Tuesday’s -$0.21 and Monday’s -$1.16);
  • Applied Genetic Technologies (AGTC +$0.53);
  • Intellia Therapeutics (NTLA +$0.45 after Thursday’s -$0.08 and Wednesday’s -$0.30);
  • Brainstorm Cell therapeutics (BCLI +$0.44);

Friday’s (bottom 10 of 13) decliners:

  • Fate Therapeutics (FATE -$1.48 after Thursday’s +$1.45, Wednesday’s +$0.17, Tuesday’s -$0.33 and Monday’s +$1.16);
  • Athersys (ATHX -$0.90 after Thursday’s -$0.07);
  • Sangamo Therapeutics (SGMO -$0.60 after Thursday’s -$1.43 and Wednesday’s -$0.50);
  • Homology Medicine (-$0.38);
  • MiMedx (Pink sheets: MDXG -$0.31 after Thursday’s +$0.82, Wednesday’s +$1.15 and Tuesday’s -$0.12);
  • BioLife Solutions (BLFS -$0.31);
  • Editas Medicine (EDIT -$0.29 after Thursday’s +$2.56, Wednesday’s -$0.99, Tuesday’s +$1.94 and Monday’s +$1.95);
  • AxoGen (AXGN -$0.21);
  • Regenxbio (RGNX -$0.13);
  • Caladrius Biosciences (CLBS -$0.07);

Closing flat: 4 – Biostage (BSTG), Verastem (VSTM), ReNeuron (RENE.L) and Stemline Therapeutics (STML – being acquired)

 

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

  • Friday’s percentage (%) of the 18-upside were +0.15% (QURE) to +20.53% (PGEN) while the 13-downside ranged from -0.07% (VCEL) to -31.36% (ATHX); 
  • Thursday’s percentage (%) of the 20-upside were +0.27% (VCEL) to +17.52% (MDXG) while the 13-downside ranged from -0.16% (RGNX) to -13.18% (SGMO); 
  • 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:

Indexes erased early gains and turned sharply lower on Friday after a number of headlines raised concern about a resurgence in the coronavirus and a slowdown in the economy’s recovery.

  • Global coronavirus cases now top 8.5 million, having added another 1 million cases in just over a week. Hot spots in Latin America and the Middle East have contributed to the rise, with cases still ticking higher in the U.S. and cases in Europe hitting a relative plateau. <CNBC>
  • Another 1.5 million Americans filed for initial unemployment benefits last week, according to data released Thursday, notching the 13th consecutive week above 1 million claims.

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

  • Friday 2.20 million
  • Thursday 2.16 million
  • Wednesday 2.14 million
  • Tuesday 2.11 million
  • Monday 2.09 million

Friday’s death rate escalated to a total of 118,758 after Thursday’s 117,717, Wednesday’s 117,129, Tuesday’s 116,341 and Monday’s 115,732 <Johns Hopkins University>

 

Upside volume stats: 

  • Friday: 14 out of the 18-upside had higher than the 3-month average volume;
  • Thursday: 4 out of the 20-upside had higher than the 3-month average volume;
  • 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:

  • Friday was up +2.18 points or +6.62% at 35.12;
  • Thursday was down -0.53 points or -1.58% at 32.94;
  • 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:

  • Friday: 9 out of the 13-downside had higher than the 3-month average volume;
  • Thursday: 3 out of the 13-downside had higher than the 3-month average volume;
  • 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

Friday closed positive with 18 advancers, 13 decliners and 4 flats

Thursday closed positive with 20 advancers, 13 decliners and 2 flats

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:  Serious spikes in coronavirus cases and fluctuations in the economic data, flattened the week’s rally as markets decline amid elevated volatility.

Investors have turned increasingly cautious as the week ahead delivers a heck of a lot of economic data.

As I had stated this a.m., “Quadruple witching usually peak on Wednesday or Thursday of expiration week; also, last week’s volatility shock might have resulted in oversize options volumes a week ahead of the expiration dates.”

And it was exactly as we experienced it while a sector lift-off in the last hour of the session assisting some upside pricing!

 

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.