July 1, 2020 7:18pm

As the Nasdaq inclines to all-time high

Pre-open indications 5 HITs and 0 MISS

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The Dow closed DOWN -77.81 points (-0.83%), the S&P closed UP +15.57 points (0.50%) while the NASDAQ closed UP +95.86 points (+0.95%)

 

Pre-open indication results: 5 HITS < Biostage (BSTG -$0.00), ReNeuron (RENE.L +$0.00), Applied Genetic Technologies (AGTC +$0.29), AxoGen (AXGN +$2.49), bluebird bio (BLUE -$0.02)> and 0 MISS

 

Henry’omics:

The S&P 500 and Nasdaq started Q3 with solid gains on Wednesday, with market sentiment getting a lift from positive and still speculative coronavirus vaccine news and strong U.S. economic data.

  • A study of a coronavirus vaccine candidate being developed by Pfizer (PFE) and BioNTech showed the drug created neutralizing antibodies;
  • The results were released online, but have not been reviewed by a medical journal yet;
  • “We are encouraged by the clinical data of BNT162b1, one of four (4) mRNA constructs we are evaluating clinically, and for which we have positive, preliminary, topline findings,” said Kathrin U. Jansen, head of vaccine research and development at PFE, in a release.

From today’s Data Docket, “The Institute for Supply Management said U.S. manufacturing activity grew to its highest level since April 2019, recovering from a sharp contraction in May.”

  • Also, “the Federal Reserve’s June meeting minutes showed the central bank thinks the economy will need monetary policy support “for some time” as the country tries to recover from the pandemic.” <CNBC>

 

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

  • Wednesday (7/1) opened positive at 18/13 and 4 flats, stayed positive at the mid-day at 22/10 and 3 flats, closing positive at 24/7 and 4 flats;
  • Tuesday opened neutral at 16/16 and 3 flats, flipped negative at the mid-day at 15/17 and 3 flats, closing positive at 21/11 and 3 flats;
  • Monday opened positive at 21/12 and 2 flats, flipped negative at the mid-day at 13/20 and 2 flats, closing negative at 10/23 and 2 flats;
  • Friday opened negative at 13/19 and 3 flats, stayed negative at the mid-day at 5/27 and 3 flats, closing negative at 4/29 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 6 out of the 24-upside having higher than the 3-month average volume and 0 out of the 7-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 24-upside were +0.14% (ADVM) to +26.84% (AXGN) while the 7-downside ranged from -0.23% (BLUE) to -4.17% (ATHX); 

 

Hammered in today’s market:

  • BioLife Solutions (BLFS), Pluristem (PSTI), Precigen (PGEN), bluebird bio (BLUE), MiMedx (Pink sheets: MDXG), Verastem (VSTM) and Athersys (ATHX) to name 7 of the 7 declining of the 35 covered

Jumping with share pricing momentum:

  • Global Blood Therapeutics (GBT), Ultragenyx Pharmaceuticals (RARE), CRISPR Therapeutics (CRSP), AxoGen (AXGN) and Sage Therapeutics (SAGE) to name 5 of the 24 trading up of 35 covered

 

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

  • Wednesday, the IBB closed up +0.50% and XBI also closed up +0.46%
  • Tuesday, the IBB closed up +1.49% and XBI also closed up +1.40%
  • Monday, the IBB closed down -0.36% and XBI also closed down -0.02%
  • Friday, the IBB closed down -2% and XBI also closed down -3.28%

 

Wednesday’s (10 of 24) incliners:

  • Global Blood Therapeutics (GBT +$7.31 after Tuesday’s -$3.37 and Monday’s +0.94);
  • Ultragenyx Pharmaceuticals (RARE +$6.43 after Tuesday’s +$4.56 and Monday’s -$2.92);
  • CRISPR Therapeutics (CRSP +$5.01 after Tuesday’s -$1.56 and Monday’s +$1.01);
  • AxoGen (AXGN +$2.49 after news of financing);
  • Regenxbio (RGNX +$1.92 after Tuesday’s -$0.13 and Monday’s -$1.13);
  • Fate Therapeutics (FATE +$1.83 after Tuesday’s +$1.70 and Monday’s -$1.20);
  • Sage Therapeutics (SAGE +$1.77 after Tuesday’s -$0.19);
  • Editas Medicine (EDIT +$1.27 after Tuesday’s +$0.24 and Monday’s +$0.42);
  • Ionis Pharmaceuticals (IONS +$1.24 after Tuesday’s -$0.44 and Monday’s -$0.69);
  • uniQure NV (QURE +$1.15 after Tuesday’s -$0.67 and Monday’s -$0.75),

Wednesday’s (bottom 7 of 7) decliners:

  • BioLife Solutions (BLFS -$0.31 after Tuesday’s +$1.05);
  • Precigen (PGEN -$0.24);
  • Pluristem (PSTI -$0.10 after Tuesday’s +$0.34);
  • Verastem Oncology (VSTM -$0.04);
  • Athersys (ATHX -$0.040;
  • Brainstorm Cell Therapeutics (BCLI -$0.02);
  • Solid Biosciences (SLDB -$0.01 after Tuesday’s -$0.18);

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

 

Percentage (%) movement/range statistics: look closely … notice percentage (%) movements are declining

  • Wednesday’s percentage (%) of the 24-upside were +0.14% (ADVM) to +26.84% (AXGN) while the 7-downside ranged from -0.23% (BLUE) to -4.17% (ATHX); 
  • Tuesday’s percentage (%) of the 21-upside were +0.14% (ALNY) to +6.86% (BLFS) while the 11-downside ranged from -0.35% (RGNX) to -6.42% (AGTC); 
  • Monday’s percentage (%) of the 10-upside were +0.46% (SGMO) to +9.18% (ADVM) while the 23-downside ranged from -0.14% (SAGE) to -12.40% (BCLI); 
  • Friday’s percentage (%) of the 4-upside were +0.35% (ATHX) to +8.02% (BCLI) while the 29-downside ranged from -0.40% (BSTG) to -18.74% (ADVM); 

 

Sentiment and a few daily indicators:

The month starts with a sector “bang” as many are encouraged by INITIAL and EARLY clinical data from current and on-going coronavirus trials.

While, Arizona on Wednesday reported nearly 4,900 additional coronavirus cases and 88 new deaths, a record-high single-day jump. California also reported a record spike in new coronavirus cases.

  • Wednesday 2.63 million
  • Tuesday 2.68 million
  • Monday 2.54 million
  • Last Friday 2.42 million

Wednesday’s death rate totaled 127,425 after Tuesday’s 129.545, Monday’s 125,803 after last Friday’s 124,468, <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 6 out of the 24-upside had higher than the 3-month average volume;
  • Tuesday: 6 out of the 21-upside had higher than the 3-month average volume;
  • Monday: 5 out of the 10-upside had higher than the 3-month average volume;
  • Friday: 3 out of the 4-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.81 points or -5.95% at 28.62;
  • Tuesday was down – 1.35 points or -4.25% at 30.43;
  • Monday was down -2.95 points or -8.49% at 31.78;
  • Friday was up +2.51 points or +7.79% at 34.73;

Downside volume stats:

  • Wednesday: 0 out of the 7-downside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 11-downside had higher than the 3-month average volume;
  • Monday: 4 out of the 23-downside had higher than the 3-month average volume;
  • Friday: 15 out of the 29-downside had higher than the 3-month average volume;

 

July

Wednesday (7/1) closed positive with 24 advancers, 7 decliners and 4 flats

 

The Bottom line:  The RegMed, cell and gene therapy sector wrapped -up Q2.

I am always espousing CAUTION, a lot of optimism is priced into current pricing

I’m also worried about earning releases as August approaches, so let July roll but, keep your canteen full and powder dry!

A quote from MarketWatch, “The stock market has been detached from economic reality. Investors, drunk with “hopium,” bored at home and unable to bet on sports, have turned the stock market into a casino.”

Some are of the same ilk … WHAT will BREAK resistance lines?

 

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.