July 23, 2020 5:50pm

Pre-open indications: 6 HITs and 6 MISS

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The Dow closed DOWN -353.51 points (-1.31 %), the S&P closed DOWN -40.36 points (-1.23 %) while the NASDAQ closed DOWN -244.71 points (-2.29 %)

 

Pre-open indication results: 6 HITs <. Biostage (BSTG -$0.00),  bluebird bio (BLUE -$0.07), Editas Medicine (EDIT +$0.13, SELL into Strength: Adverum Biotechnologies (ADVM -$0.11), Sage Therapeutics (SAGE -$0.43); BUY- Brainstorm Cell Therapeutics (BCLI +$1.29)   6 MISS < Homology Medicine (FIXX -$0.74), CRISPR Therapeutics (CRSP -$2.17), Intellia Therapeutics (NTLA -$0.60), Ionis Pharmaceuticals (IONS -$0.97), Pluristem (PSTI -$0.49), ), AxoGen (AXGN -$0.24),

 

Henry’omics:

Indexes were down on disappointing unemployment data as the session moved to the close.

Jobless claims rose more than expected for a second straight week, hitting 1.416 million in the week ended July 18, according to the Labor Department. Estimates expected about 1.3 million claims.          

 

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

  • Thursday opened negative at 15/18 and 2 flats, stayed negative at the mid-day at 11/22 and 2 flats, closing negative at 4/29 and 2 flats;
  • 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 2 of the 4-upside having higher than the 3-month average volume and 4 out of the 29-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 4-upside were +0.24% (BLFS) to +2.46% (SLDB) while the 29-downside ranged from -0.04% (GBT) to -6.51% (PGEN); 

 

Hammered in today’s market:

  • Precigen (GEN), Bellicum Pharmaceuticals (BLCM), Pluristem (PSTI), Ultragenyx (RARE), Homology Medicine (FIXX) to name 5 of the 29 declining of the 35 covered

Jumping with share pricing momentum:

  • BioLife Solutions (BLFS), Editas Medicine (EDIT), Solid Biosciences (SLDB) and Brainstorm Cell Therapeutics (BCLI), to name 4 of the 4 trading up of 35 covered

 

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

  • Thursday, the IBB closed down -1.85% and XBI also closed down -2.02%
  • 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%

 

Thursday’s (4 of 4 incliners:

  • Editas Medicine (EDIT +$0.13);
  • Brainstorm Cell Therapeutics (BCLI +0.08 after Wednesday’s +$0.21, Tuesday’s +$0.07 and Monday’s +$0.89);
  • Solid Biosciences (SLDB +$0.07);
  • BioLife Solutions (BLFS +$0.05 after Wednesday’s -$0.91 after Tuesday’s +$0.42 and Monday’s +$1.45);

Thursday’s (10 of 29) decliners:

  • Ultragenyx (RARE -$4.02 after Wednesday’s -$1.35, Tuesday’s -$3.61 and Monday’s +$2.03);
  • Alnylam Pharmaceuticals (ALNY -$3.37);
  • CRISPR Therapeutics (CRSP -$2.17 after Wednesday’s -$0.58, Tuesday’s -$1.75 and Monday’s +$2.95);
  • Regenxbio (RGNX -$1.47 after Wednesday’s +$0.89, Tuesday’s -$1.72 and Monday’s -$0.37);
  • Fate Therapeutics (FATE -$1.07 after Wednesday’s -$0.24 and Tuesday’s -$1.11);
  • ReNeuron (RENE.L -$1.00 after Wednesday’s -$9.00, Tuesday’s -$4.25 and Monday’s +$2.50);
  • Ionis Pharmaceuticals (IONS -$0.97 after Wednesday’s -$0.38, Tuesday’s -$1.02 and Monday’s -$0.08);
  • Homology Medicine (FIXX -$0.74 after Wednesday’s -$0.44, Tuesday’s +$0.01 and Monday’s +$1.23);
  • Intellia Therapeutics (NTLA -$0.50 after Wednesday’s -$0.71);

Closing flat: 2 – Biostage (BSTG) and Stemline Therapeutics (STML – being acquired)

 

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

  • Thursday’s percentage (%) of the 4-upside were +0.24% (BLFS) to +2.46% (SLDB) while the 29-downside ranged from -0.04% (GBT) to -6.51% (PGEN); 
  • 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:

Today’s labor market numbers come as lawmakers work on an additional stimulus package understanding the surge in the Sun belt for those impacted by the coronavirus pandemic.

Which is causing additional layoffs and less re-openings…

  • Thursday 3.9 million cases
  • Wednesday 3.9 million cases
  • Tuesday 3.85 million cases
  • Monday 3.77 million cases

Thursday’s death rate totaled 143,100 after Wednesday’s 142,095, Tuesday’s 141,118, Monday’s 140,563, Friday’s 138,000 and last Thursday’s 137,846 <Johns Hopkins University>

 

Upside volume stats: 

  • Thursday: 2 out of the 4-upside had higher than the 3-month average volume;
  • 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:

  • Thursday was up +1.76 points or +7.24% at 26.08
  • 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:

  • Thursday: 4 out of the 29-downside had higher than the 3-month average volume;
  • 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

Thursday closed negative with 4 advancers, 29 decliners and 2 flats

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 … although even I MISS a few with my HITs on my pre-open indication “calls” – at the least I was even - today!

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, Editas Medicine (EDIT) with Alnylam Pharmaceuticals (ALNY) on 8/6 and 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.