July 28, 2020 5:21pm

The market was distressed as momentum was thrown overboard

Pre-open indications: 6 HITs and 0 MISS

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The Dow closed DOWN -205.28 points (-0.77%), the S&P closed DOWN -20.95 points (-0.65%) while the NASDAQ closed DOWN -134.18 points (-1.27%)

 

Pre-open indication results: 6 HITs <Biostage (BSTG -$0.00), <Adverum Biotechnologies (ADVM -$0.92), CRISPR Therapeutics (CRSP -$5.70), Mesoblast (MESO -$0.56), Homology Medicine (FIXX +$0.21) and 0 MISS

 

Henry’omics:

Indexes fell on Tuesday as tech shares were under pressure and lawmakers continued their debate over the next coronavirus relief package.

This morning’s newsletter,  RegMed Investors’ (RMi) pre-open: mind your p’s and q’s … https://www.regmedinvestors.com/articles/11475

Read the latest of the Biostage (BSTG) Chronicles 

 

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

  • Tuesday opened negative at 5/28 and 2 flats, stayed negative at the mid-day at 8/25 and 2 flats, closing negative at 6/27 and 2 flats;
  • Monday opened positive at 25/7 and 3 flats, stayed positive at the mid-day at 21/12 and 2 flats, closing positive at 22/11 and 2 flats;
  • Friday opened negative at 7/27 and 1 flat, stayed negative at the mid-day at 6/29 and 1 flat, closing negative at 7/27 and 1 flat;

 

Key metrics:

  • Sector volume was LOW with x of the 6-upside having higher than the 3-month average volume and x out of the 27-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 6-upside were +0.31% (GBT) to +4.44% (RENE.L) while the 27-downside ranged from -0.32% (BLUE) to -9.64% (SGMO); 

 

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), Sage Therapeutics (SAGE) to name 5 of the 27 declining of the 35 covered

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Global Blood Therapeutics (GBT), Homology Medicine (FIXX), Aduro biotech (ADRO), MiMedx (OTC Pink sheets: MDXG), Pluristem (PSTI) to name 6 of the 6 trading up of 35 covered

 

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

  • Tuesday, the IBB closed down -1.35% and XBI also closed down -2.55%
  • Monday, the IBB closed up +2.67% and XBI also closed up +2.59%
  • Friday, the IBB closed down -2.19% and XBI also closed down -2.34%

 

Tuesday’s (6 of 6) incliners:

  • ReNeuron (RENE.L +$5.00 after Monday’s -$9.00);
  • Aduro Biotech (ADRO +$0.07);
  • Homology Medicine (FIXX +$0.19);
  • MiMedx (OTC Pink sheets: MDXG +$0.06 after Monday’s -$0.04);
  • Pluristem (PSTI +$0.04 after Monday’s -$0.09);
  • Global Blood Therapeutics (GBT +$9.22 after Monday’s -$1.00);

Tuesday’s (10 of 27) decliners:

  • CRISPR Therapeutics (CRSP -$5.72 after Monday’s +$1.77)
  • Ultragenyx (RARE -$4.58 after Monday’s +$3.65);
  • Alnylam Pharmaceuticals (ALNY -$3.18 after Monday’s +$4.41);
  • Regenxbio (RGNX -$2.36);
  • Sage Therapeutics (SAGE -$2.11 after Monday’s +$0.98);
  • Fate Therapeutics (FATE -$2.06 after Monday’s +$1.35);
  • Editas Medicine (EDIT -$1.50 after Monday’s +$1.82);
  • uniQure NV (QURE -$1.48 after Monday’s +$1.54);
  • Sangamo Therapeutics (SGMO -$1.07);
  • Adverum Biotechnologies (ADVM -$0.99);

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

 

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

  • Tuesday’s percentage (%) of the 6-upside were +0.31% (GBT) to +4.44% (RENE.L) while the 27-downside ranged from -0.32% (BLUE) to -9.64% (SGMO); 
  • Monday’s percentage (%) of the 22-upside were +1.64% (RGNX) to +10.01% (MESO) while the 11-downside ranged from -0.58% (BCLI) to -10.53% (SLDB); 
  • Friday’s percentage (%) of the 7-upside were +0.11% (RGNX) to +5.80% (VSTM) while the 28-downside ranged from -0.35% (ADVM) to -15.03% (BSTG); 

 

Sentiment and a few daily indicators:

The stimulus debate defines today’s downtrend as … “a plan unveiled by Senate Republicans would include relief for jobless Americans, another direct payment to individuals of up to $1,200, and more Paycheck Protection Program small business loan funds, among other provisions. It would also set federal unemployment insurance at 70% of a worker’s previous wages, replacing the $600 per week which states stopped paying out this week.” <CNBC>

  • Tuesday 4.3 million cases
  • Monday 4.26 million cases
  • Friday 4.07 million cases

Tuesday’s death rate totaled 148,298 after Monday’s 147,143 and last Friday’s 144,780 <Johns Hopkins University>

 

Upside volume stats: 

  • Tuesday: 2 out of the 6-upside had higher than the 3-month average volume;
  • Monday: 3 out of the 22-upside had higher than the 3-month average volume;
  • Friday: 0 out of the 7-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.86 points or +3.48% at 25.59
  • Monday was down -1.10 points or -4.26% at 24.74
  • Friday was down -0.24 points or +-0.92% at 25.84

Downside volume stats:

  • Tuesday: 5 out of the 27-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 11-downside had higher than the 3-month average volume;
  • Friday: 3 out of the 28-downside had higher than the 3-month average volume;

 

July

Tuesday closed negative with 6 advancers, 27 decliners and 2 flats

Monday (7/27) closed positive with 22 advancers, 11 decliners and 2 flats

Friday closed negative with 7 advancers, 27 decliners and 1 flat

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:  Reiterating, “volatility sketches a contradictory picture of the short-term. When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started.”

Same theme, different session: Skim if you can trim, buy if it will fly and sell if compelled!

 

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.