July 8, 2020 7:15pm

Pre-open indications: 5 HITs and 1 MISS

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The Dow closed UP +177.10 points (+0.68%), the S&P closed UP +24.92 points (+0.78 %) while the NASDAQ closed UP +148.61 points (+1.44%)

 

Pre-open indication results: 5 HITs <Toxic Sell Biostage (BSTG- $0.01), Sell into Strength - Alnylam Pharmaceuticals (ALNY +0.42); CRISPR Therapeutics (CRSP +$2.76), Ultragenyx Pharmaceuticals (RARE +$2.12) - BUY - Regenxbio (RGNX +$1.20) > and 0 MISS

 

Henry’omics:

Indexes rose after fluctuating early afternoon on Wednesday in volatile trading … earlier in the day, the Dow was up more than 200 points and briefly turned negative close positive.

 

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

  • Wednesday opened positive at 22/11 and 2 flats, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 28/5 and 2 flats;
  • Tuesday opened positive at 16/15 and 4 flats, stayed positive at the mid-day at 23/9 and 3 flats, closing positive at 18/12 and 5 flats;
  • Monday opened positive at 21/11 and 3 flats, stayed positive at the mid-day at 22/12 and 1 flat, closing positive at 19/15 and 1 flats;

 

Key metrics:

  • Sector volume was LOW with 7 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;
  • Wednesday’s percentage (%) of the 28-upside were +0.26% (ALNY) to +8.15% (CLLS) while the 5-downside ranged from -0.40% (BSTG) to -6.09% (FIXX); 

 

Hammered in today’s market:

  • Biostage (BSTG), ReNeuron (RENE.L), MiMedx (OTC Pink sheets: MDXG), Homology Medicine (FIXX) and Ionis Pharmaceuticals (IONS) to name 5 of the 5 declining of the 35 covered

Jumping with share pricing momentum:

  • Sage Therapeutics (SAGE), Editas Medicine (EDIT), CRISPR Therapeutics (CRSP), Ultragenyx Pharmaceuticals (RARE) to name 5 of the 28 trading up of 35 covered

 

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

  • Wednesday, the IBB closed up +0.54% and XBI also closed up +1.50%
  • Tuesday, the IBB closed up +0.44% and XBI also closed up +1.88%
  • Monday, the IBB closed up +0.65% and XBI also closed up +0.03%

 

Wednesday’s (10 of 28) incliners:

  • CRISPR Therapeutics (CRSP +$2.76 after Tuesday’s +$7.30 and Monday’s +$4.41);
  • Editas Medicine (EDIT +$2.46 after Tuesday’s +$1.49);
  • Sage Therapeutics (SAGE +$2.44);
  • Ultragenyx Pharmaceuticals (RARE +$2.12 after Tuesday’s +$1.13 and Monday’s +$0.71);
  • bluebird bio (BLUE-+$2.07 after Tuesday’s +$6.19 and Monday’s -$1.42);
  • Global Blood Therapeutics (GBT +$1.45 after Tuesday’s -$0.64 and Monday’s -$0.29);
  • Cellectis SA (CLLS +$1.33 after Tuesday’s -$2.73 and Monday’s +$0.40);
  • Regenxbio (RGNX +$1.20 after Tuesday’s +$1.50 and Monday’s -$1.89);
  • Adverum Biotechnologies (ADVM +$1.16);
  • uniQure NV (QURE +$1.08 after Tuesday’s +$0.93 and Monday’s -$0.73),

Wednesday’s (bottom 5 of 5) decliners:

  • ReNeuron (RENE.L -$2.50);
  • Homology Medicine (FIXX -$1.01 after Tuesday’s +$1.23);
  • Ionis Pharmaceuticals (IONS -$0.48);
  • MiMedx (OTC Pink sheets: MDXG -$0.05);
  • Biostage (BSTG -$0.01 after Tuesday’s -$0.09);

Closing flat: 2 – Precigen (PGEN) and Stemline Therapeutics (STML – being acquired)

 

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

  • Wednesday’s percentage (%) of the 28-upside were +0.26% (ALNY) to +8.15% (CLLS) while the 5-downside ranged from -0.40% (BSTG) to -6.09% (FIXX); 
  • Tuesday’s percentage (%) of the 18-upside were +0.03% (GBT) to +10.93% (BLUE) while the 12-downside ranged from -0.33% (BLFS) to -15.83% (CLLS); 
  • Monday’s percentage (%) of the 19-upside were +0.13% (FIXX) to +9.14% (MESO) while the 15-downside ranged from -0.02% (IONS) to -8.09% (AGTC); 

 

Sentiment and a few daily indicators - cases:

“It seems like you flip a switch when those Covid-19 cases go up, the country takes a step back in terms of reopening the economy and all those names find high demand,” said Christian Fromhertz, CEO of The Tribeca Trade Group. <CNBC>

  • Wednesday 3 million cases
  • Tuesday 2.93 million cases
  • Monday 2.89 million cases

Wednesday’s death rate totaled 131,594 after Tuesday’s 130,306 and Monday’s 130,007 <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 7 out of the 28-upside had higher than the 3-month average volume;
  • Tuesday: 7 out of the 18-upside had higher than the 3-month average volume;
  • Monday: 4 out of the 19-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.35 points or -4.59% at 28.08;
  • Tuesday was up +1.49 points or +5.33% at 29.43;
  • Monday was up +0.26 points or +0.94% at 27.94;

Downside volume stats:

  • Wednesday: 1 out of the 5-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 12-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 15-downside had higher than the 3-month average volume;

 

July

Wednesday closed positive with 28 advancers, 5 decliners and 2 flats

Tuesday closed positive with 18 advancers, 12 decliners and 5 flats

Monday closed positive with 19 advancers, 15 decliners and 1 flat

Friday was a market holiday;

Thursday closed positive with 18 advancers, 14 decliners and 3 flats

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

 

The Bottom line:  Markets and the RegMed/Cell and gene therapy sector is a gambler’s paradise!

Volatility is king while volume is on the low side.

Some say it as I would, “The moral to the story is that volatile markets force investors to “learn or relearn our true tolerance for risk. And, even if you’ve invested through periods like this before, sometimes we need a reminder of what risk feels like.” < Michael Batnick, director of research at Ritholtz Wealth Management>

These past July days and today we feel warm and toasty from the sector inclines; however, we all know one thing – "the trend is NOT your friend" and sooner NOT later the electronic algorithmic trading machines are going to CUT into the upside!

I’m always a worrier yet, by systematically realizing profits adds to the POWER and cash position for re-invest in your portfolio!

 

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.