July 15, 2020 5:34pm

Every sector stock is a trade; warning, sector Q2 earnings LPS (loss-per-share) results are looming

Pre-open indications: 5 HIT and 0 MISS

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The Dow closed UP +227.51 points (+0.85%), the S&P closed UP +29.04 points (+0.91%) while the NASDAQ closed UP +61.92 points (+0.59%)

 

Pre-open indication results: 5 HITs < sell into strength - Biostage (BSTG +$0.01 on 204 shares traded), Athersys (ATHX +$0.05), CRISPR Therapeutics (CRSP +$2.41)> buy - Applied Genetic Technologies (AGTC +$0.17), sell - Caladrius Biosciences (CLBS -$0.52), and 0 MISS

 

Henry’omics:

Indexes rose Wednesday on the back of positive coronavirus vaccine news and a blowout quarter from Goldman Sachs (GS).

Data published by the New England Journal of Medicine showed Moderna’s (MNRA) coronavirus vaccine produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial. The news sent MNRA’s shares up 6.90%. <CNBC>

The major averages closed well off their session highs, however, as shares of other major tech companies declined.

 

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

  • Wednesday opened positive at 29/4 and 2 flats, stayed positive at the mid-day at 29/5 and 1 flat, closing positive at 30/4 and 1 flat;
  • Tuesday opened negative at 12/22 and 1 flat, strayed neutral at the mid-day at 17/17 and 1 flat, closing positive at 25/8 and 2 flats;
  • Monday opened positive at 21/11 and 3 flats, stayed positive at the mid-day at 22/9 and 4 flats, closing negative at 4/29 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 3 of the 30-upside having higher than the 3-month average volume and 2 out of the 4-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 30-upside were +0.08% (BCLI) to +7.37% (CLLS) while the 4-downside ranged from -0.70% (MDXG) to -17.33% (CLBS); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Caladrius Biosciences (CLBS), Adverum Biotechnologies (ADVM), MiMedx (OTC Pink sheets: MDXG) to name 4 of the 4 declining of the 35 covered

Jumping with share pricing momentum:

  • bluebird bio (BLUE), Global Blood Therapeutics (GBT), CRISPR Therapeutics (CRSP), Regenxbio (RGNX) and Ultragenyx Pharmaceuticals (RARE) to name 5 of the 30 trading up of 35 covered

 

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

  • Wednesday, the IBB closed up +1.68% and XBI also closed up +2.13%
  • Tuesday, the IBB closed up +2.12% and XBI also closed up +2.55%
  • Monday, the IBB closed down -1.34% and XBI also closed down -2.58%

 

Wednesday’s (10 of 25 incliners:

  • bluebird bio (BLUE +$3.08 after Tuesday’s +$2.12 and Monday’s -$3.28);
  • Global Blood Therapeutics (GBT +$2.68 after Tuesday’s -$0.25);
  • CRISPR Therapeutics (CRSP +$2.41 after Tuesday’s +$4.68 after Monday’s -$3.24);
  • Regenxbio (RGNX +$1.61 after Tuesday’s +$2.33);
  • Sage Therapeutics (SAGE +$1.60 after Tuesday’s +$2.52 and Monday’s -$1.79);
  • Ionis Pharmaceuticals (IONS +$1.45);
  • uniQure NV (QURE +$1.39 after Tuesday’s -$0.56 and Monday’s -$2.34);
  • Cellectis SA (CLLS +$1.22);
  • Ultragenyx Pharmaceuticals (RARE +$1.12 after Tuesday’s +$2.34 and Monday’s -$4.31);
  • Editas Medicine (EDIT +$1.00);
  • Voyager Therapeutics (VYGR +$0.93);

Wednesday’s (4 of 4) decliners:

  • Caladrius Biosciences (CLBS -$0.52 after Tuesday’s +$0.84 and Monday’s +$0.13);
  • ReNeuron (RENE.L -$5.00 after Tuesday’s +$2.50);
  • Adverum Biotechnologies (ADVM -$0.34);
  • MiMedx (OTC Pink sheets: MDXG -$0.04);

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

 

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

  • Wednesday’s percentage (%) of the 30-upside were +0.08% (BCLI) to +7.37% (CLLS) while the 4-downside ranged from -0.70% (MDXG) to -17.33% (CLBS); 
  • Tuesday’s percentage (%) of the x-upside were +0.18% (CLLS) to +38.89% (CLBS) while the xx-downside ranged from -0.35% (GBT) to -4.11% (BLCM); 
  • Monday’s percentage (%) of the 4-upside were +0.60% (AXGN) to +6.40% (CLBS) while the 29-downside ranged from -0.10% (BLFS) to -9.91% (NTLA); 

 

Sentiment and a few daily indicators - cases:

“A COVID-19 cure/vaccine is a binary event for markets, and there are many ‘shots on goal’ on the healthcare side and only one needs to be successful,” said Tom Lee, founder and head of research at Fundstrat Global Advisors, in a note. “There are piles of cash seen in hedge funds, macro funds, mutual funds and individual investors. If the cadence of healthcare data continues to support some sort of cure, the focus on ‘re-closings’ ultimately fades.” <CNBC>

  • Wednesday 3.43 million cases
  • Tuesday 3.3 million cases
  • Monday 3.3 million cases

Wednesday’s death rate totaled 136,400 after Tuesday’s 135,900 after Monday’s 135,205 <Johns Hopkins University>

 

Upside volume stats: 

  • Wednesday: 3 out of the 30-upside had higher than the 3-month average volume;
  • Tuesday: 5 out of the 25-upside had higher than the 3-month average volume;
  • Monday: 1 out of the 4-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.76 points or -5.96% at 27.76
  • Tuesday was down -2.67 points or -8.29% at 29.52
  • Monday was up +4.90 points or +17.96% at 32.19

Downside volume stats:

  • Wednesday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 8-downside had higher than the 3-month average volume;
  • Monday: 10 out of the 29-downside had higher than the 3-month average volume;

 

July

Wednesday closed positive with 30 advancers, 4 decliners and 1 flat

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

Monday (7/13) closed negative with 4 advancers, 29 decliners and 2 flats

Friday closed negative with 9 advancers, 22 decliners and 4 flats

Thursday closed negative with 10 advancers, 24 decliners and 1 flat

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

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

Monday (7/6) 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:  Reiterating, “I believe we are at a scary time in the sector and the market – the upside is like “rolling thunder” however, I had expected a reversal after the downside slide!”

Q2 results are coming, so will momentum last? I tend to be a contrarian – safety is NOT a virtue! Speculation has proved to be a VICE … it’s gambling in a bigger casino or on sports.

 

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.