July 22, 2020 5:33pm
Two down sessions followed by two up sessions, a pattern or trend, check the July closing’s list
Pre-open indications: 6 HITs and 3 MISS <see note of regulatory enforcement review needed>
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The Dow closed UP +165.44 points (+0.62%), the S&P closed UP +18.72 points (+0.57%) while the NASDAQ closed UP +25.76 points (+0.24%)
Pre-open indication results: 6 HITs < BioLife Solutions (BLFS -$0.91), Fate Therapeutics (FATE -$0.24), CRISPR Therapeutics (CRSP -$0.58), Applied Genetic Technologies (AGTC +$0.20), Mesoblast (MESO +$0.14), Pluristem (PSTI +$0.29)> 3 MISS < Alnylam Pharmaceuticals (ALNY -$0.05), Vericel (VCEL -$0.13), Biostage (BSTG +$0.07 after a -$0.34 decline just before the market closed – an existing pattern of manipulating a share pricing – SEC, Mass enforcement and regulatory agencies need to investigate these recent and past moves!>
Henry’omics:
Indexes fluctuated Wednesday – at least they closed up after escalating tensions between the U.S. and China as equities were given a boost earlier in the session after Pfizer (PFE) reached a coronavirus vaccine agreement with the U.S. government.
News of the vaccine treatment:
- BioNTech (BNTX) and Pfizer (PFE) said they will receive $1.95 billion from the U.S. government to produce at least 100 million doses of their experimental COVID-19 vaccine if it receives approval or emergency use authorization from the FDA;
- The announcement came one day after a House of Representatives lawmaker said during a hearing that PFE had "rejected taxpayer money" for its coronavirus vaccine candidate;
- PFE’s chief business officer John Young responded to lawmakers by saying "didn't accept the federal government funding solely for the reason that we wanted to be able to move as quickly as possible with our vaccine candidate."
- AstraZeneca (AZN) and Moderna (MRNA) that have moved their vaccines into clinical trials in the U.S. have already established financial relationships with the U.S. government. <MarketWatch>
RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Wednesday opened negative at 15/19 and 1 flat, stayed negative at the mid-day at 11/23 and 1 flat, closing negative at 12/22 and 1 flat;
- Tuesday opened negative at 14/18 and 3 flats, stayed negative at the mid-day at 24/10 and 1 flat, closing negative at 10/24 and 1 flat;
- Monday opened positive at 21/11 and 3 flats, stayed positive at the mid-day at 23/11 and 1 flat, closing positive at 24/10 and 1 flat;
Key metrics:
- Sector volume was LOW with 1 of the 12-upside having higher than the 3-month average volume and 2 out of the 22-downside having higher than the 3-month average volume;
- Wednesday’s percentage (%) of the xx-upside were +0.06% (CLLS) to +6.25% (OTC Pink sheets: MDXG) while the 9-downside ranged from -0.01% (GBT) to -6.67% (RENE.L);
Hammered in today’s market:
- ReNeuron (RENE.L), Ultragenyx (RARE), uniQure (QURE), BioLife Solutions (BLFS), Alnylam Pharmaceuticals (ALNY) to name 5 of the 22 declining of the 35 covered
Jumping with share pricing momentum:
- Regenxbio (RGNX), Sage Therapeutics (SAGE), Pluristem (PSTI), Adverum Biotechnologies (ADVM) MiMedx (OTC Pink sheets: MDXG) to name 5 of the 12 trading up of 35 covered
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB closed down -0.25% and XBI also closed down -0.48%
- Tuesday, the IBB closed down -2.29% and XBI also closed down -2.08%
- Monday, the IBB closed up +1.28% and XBI also closed up +1.36%
Wednesday’s (10 of 12 incliners:
- Sage Therapeutics (SAGE +$1.61 after Tuesday’s +$0.87 and Monday’s +$1.23);
- Regenxbio (RGNX +$0.89 after Tuesday’s -$1.72 and Monday’s -$0.37);
- Adverum Therapeutics (ADVM +$0.60);
- MiMedx (OTS Pink sheets: MDXG +$0.32 after Tuesday’s +$0.06);
- Pluristem (PSTI +$0.29);
- Brainstorm Cell Therapeutics (BCLI +$0.21 after Tuesday’s +$0.07 and Monday’s +$0.89);
- Applied Genetic Technologies (AGTC +$0.20);
- AxoGen (AXGN +$0.20 after Tuesday’s +$0.19 and Monday’s -$0.11);
- Mesoblast (MESO +$0.14 after Tuesday’s +$0.32);
- Biostage (+$0.07);
Wednesday’s (10 of 22) decliners:
- ReNeuron (RENE.L -$9.00 after Tuesday’s -$4.25 and Monday’s +$2.50);
- Ultragenyx (RARE -$1.35 after Tuesday’s -$3.61 and Monday’s +$2.03);
- uniQure NV (QURE -$1.04);
- BioLife Solutions (BLFS -$0.91 after Tuesday’s +$0.42 and Monday’s +$1.45);
- Intellia Therapeutics (NTLA -$0.71);
- bluebird bio (BLUE -$0.61 after Tuesday’s -$1.61 and Monday’s +$1.31);
- CRISPR Therapeutics (CRSP -$0.58 after Tuesday’s -$1.75 and Monday’s +$2.95);
- Homology Medicine (FIXX -$0.44 after Tuesday’s +$0.01 and Monday’s +$1.23);
- Ionis Pharmaceuticals (IONS -$0.38 after Tuesday’s -$1.02 and Monday’s -$0.08);
- Fate Therapeutics (FATE -$0.24 after Tuesday’s -$1.11);
Closing flat: 1 - Stemline Therapeutics (STML – being acquired)
Percentage (%) movement/range statistics: look closely … notice percentage (%) movements are declining
- Wednesday’s percentage (%) of the xx-upside were +0.06% (CLLS) to +6.25% (OTC Pink sheets: MDXG) while the 9-downside ranged from -0.01% (GBT) to -6.67% (RENE.L);
- Tuesday’s percentage (%) of the 10-upside were +0.06% (FIXX) to +2.67% (MESO) while the 24-downside ranged from -0.33% (BSTG) to -6.88% (EDIT);
- Monday’s percentage (%) of the 24-upside were +0.23% (VYGR) to +8.07% (FIXX) while the 10-downside ranged from -0.13% (IONS) to -4.98% (ADVM);
Sentiment and a few daily indicators:
Market sentiment was kept in check earlier in the session after the U.S. State Department abruptly ordered China to close its consulate in Houston.
To focus on the cure for the Wuhan, China coronavirus or COVID-19: The Department of Health and Human Services announced a nearly $2 billion deal with Pfizer (PFE) and BioNTech (BNTX) for 100 million doses of a potential vaccine.
Under the agreement, the government can buy an additional 500 million doses and the vaccine would be provided to the public “at no cost.”
Congress is still hammering out details of a second relief bill, which top lawmakers expect to pass in August. <CNBC>
- Wednesday 3.90 million cases
- Tuesday 3.85 million cases
- Monday 3.77 million cases
Wednesday’s death rate totaled 142,095 after Tuesday’s 141,118 after Monday’s 140,563, Friday’s 138,000, Thursday’s 137,846 and last Wednesday’s 136,400 <Johns Hopkins University>
Upside volume stats:
- Wednesday: 1 out of the 12-upside had higher than the 3-month average volume;
- Tuesday: 6 out of the 10-upside had higher than the 3-month average volume;
- Monday: 6 out of the 24-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -0.52 points or -2.09% at 24.32
- Tuesday was up +0.38 points or +1.55% at 24.84
- Monday was down -1.22 points or -4.75% at 24.46
Downside volume stats:
- Wednesday: 2 out of the 22-downside had higher than the 3-month average volume;
- Tuesday: 4 out of the 24-downside had higher than the 3-month average volume;
- Monday: 0 out of the 10-downside had higher than the 3-month average volume;
July
Wednesday closed negative with 12 advancers, 22 decliners and 1 flat
Tuesday closed negative with 10 advancers, 24 decliners and 1 flat
Monday (7/20) closed positive with 24 advancers, 10 decliners and 1 flat
Friday closed positive with 24 advancers, 9 decliners and 2 flats
Thursday closed negative with 7 advancers, 25 decliners and 3 flats
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: NOT changing MY tune …
I’d be reducing RISK, a four-letter expletive in this sector and … I’d stop chewing the “bubble” gum of this market.
In a way I’m advising “pin-prick” raids on highs – hit and run with profits of highs!
Is the stock market a bubble waiting to burst? That is the question that some strategists and investors are considering as the U.S. equity market enjoys a run-up of at least 40% from the March lows, even as the economic picture, albeit an improving one, is currently looking unlikely to see a quick rebound from the COVID-19 pandemic. <MarketWatch>
Q2 sector results should start appearing in the first week of August … AxoGen (AXGN) and Ionis Pharmaceuticals IONS on 8/5, Athersys (ATHX), Vericel (VCEL), Ionis Pharmaceuticals (IONS) and Sage Therapeutics (SAGE) on 8/10.
They will also be a litmus test of sector share pricing … challenging will be a key word!
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.
