August 12, 2020 7:55pm

The sector is notoriously susceptible to rotation

Pre-open indication results: 6 HIT and 1 MISS

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I say today what others won't, so you can do what others can't; I put into context what is relevant for investors

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The Dow closed UP +289.93 points (+1.05%), the S&P closed UP +46.66 points (+1.40%) while the NASDAQ closed UP +229.42 points (+2.13%)

 

Pre-open indication results: 6 HIT <Adverum Biotechnologies (ADVM -$0.69), Biostage (BSTG -$0.00), Global Blood Therapeutics (GBT +$1.12), BioLife Solutions (BLFS -$1.49), Editas Medicine (EDIT +$0.56), uniQure NV (QURE +$0.86)> and 1 MISS < Regenxbio (RGNX -$0.78)>

 

Henry’omics:

Indexes rose sharply on Wednesday, putting the S&P 500 just below its all-time high set in February, as shares of tech companies recovered some of their steep losses from the previous session.

The S&P 500 came within six points of a closing high; the index's previous all-time closing high of 3,386 was set on Feb. 19.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: RegMed Investors’ (RMi) pre-open: strap in, the roller-coaster sector causes a gut-churn … https://www.regmedinvestors.com/articles/11497

 

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

  • Wednesday opened positive at 21/11 and 3 flats, flipped negative at the mid-day at 12/20 and 3 flats, closing negative at 13/19 and 3 flats;
  • Tuesday opened negative at 8/25 and 2 flats, stayed negative at the mid-day at 5/28 and 2 flats, closing negative at 3/32 and 1 flat;
  • Monday opened positive at 24/10 and 1 flat, stayed positive at the mid-day at 25/9 and 1 flat, closing positive at 25/8 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 3 of the 13-upside having higher than the 3-month average volume and the 3 of 19-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 13-upside were +0.06% (ALNY) to +6.21% (VSTM) while the 19-downside ranges from -0.09% (VYGR) to -7.52% (BLFS); 

 

Hammered in today’s market:

  • BioLife Solutions (BLFS), Sage Therapeutics (SAGE), bluebird bio (BLUE), Adverum Biotechnologies (ADVM), Regenxbio (RGNX) to name 5 of the 19 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA), Ultragenyx (RARE), Global Blood Therapeutics (GBT), uniQure NV (QURE) to name 5 of the 13 trading up of 35 covered

 

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

  • Wednesday, the IBB closed up +1.46% and XBI also closed up +0.32%
  • Tuesday, the IBB closed down -2.22% and XBI also closed down -3.98%
  • Monday, the IBB closed down -1% and XBI also closed down -0.01%

 

Wednesday’s (10 of 13) incliners:

  • CRISPR Therapeutics (CRSP +$1.86 after Tuesday’s -$1.32 and Monday’s +$0.96);
  • Global Blood Therapeutics (GBT +$1.12);
  • Ultragenyx (RARE +$0.95 after Tuesday’s -$2.29);
  • uniQure NV (QURE +$0.86);
  • Intellia Therapeutics (NTLA +$0.85);
  • Editas Medicine (EDIT +$0.56 after Tuesday’s -$1.32 and Monday’s +$0.80);
  • Mesoblast (MESO +$0.48 after Tuesday’s -$6.09 and Monday’s +$1.38);
  • Brainstorm Cell Therapeutics (BCLI +$0.27);
  • MiMedx (OTC Pink sheets: MDXG +$0.24);
  • Pluristem (PSTI +$0.22);

Wednesday’s (10 of 19) decliners:

  • BioLife Solutions (BLFS -$1.49 after Tuesday’s -$2.75 and Monday’s +$1.55);
  • Sage Therapeutics (SAGE -$1.23 after Tuesday’s -$1.94 and Monday’s +$2.61);
  • Regenxbio (RGNX -$0.78);
  • bluebird bio (BLUE -$0.71 after Tuesday’s -$3.28 and Monday’s +$2.29);
  • Adverum Biotechnologies (ADVM -$0.69 after Tuesday’s -$3.11 and a proposed $200 million offering);
  • Fate Therapeutics (FATE -$0.59);
  • Sangamo Therapeutics (SGMO -$0.46);
  • Ionis Pharmaceuticals (IONS -$0.44);
  • Cellectis SA (CLLS -$0.42);
  • Vericel (VCEL -$0.40 after Tuesday’s +$0.13);

Closing flat: 3 – Biostage (BSTG), ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: comparisons

  • Wednesday’s percentage (%) of the 13-upside were +0.06% (ALNY) to +6.21% (VSTM) while the 19-downside ranges from -0.09% (VYGR) to -7.52% (BLFS); 
  • Tuesday’s percentage (%) of the 3-upside were +0.18% (VYGR) to +0.88% (RENE.L) while the 32-downside ranges from -$0.69 (BSTG) to -34.96% (MESO); 
  • Monday’s percentage (%) of the 25-upside were +0.06% (CLLS) to +8.60% (MESO) while the 8-downside ranges from -$0.09 (VYGR) to -4.50% (GBT); 

 

Sentiment and a few daily indicators:

Sentiment was also lifted in part by President Trump saying late Tuesday that the U.S. government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials. <CNBC>

  • Wednesday 5.1 cases,
  • Tuesday 5.09 cases,
  • Monday 5.05 cases,

Wednesday’s death rate totaled 164,900 after Tuesday’s 163,400 and Monday’s 162,950 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 3 out of the 13-upside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 3-upside had higher than the 3-month average volume;
  • Monday: 3 out of the 25-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -1.75 points or -7.28% at 22.28
  • Tuesday was up +1.90 points or 8.59% at 24.03
  • Monday was down -0.08 points or -0.35% at 22.13

Downside volume:

  • Wednesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Tuesday: 9 out of the 32-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 8-downside had higher than the 3-month average volume;

 

August, the second month of Q3 …

Wednesday closed negative with 13 advancers, 19 declines and 3 flats

Tuesday closed negative with 3 advancers, 32 declines and 1 flat

Monday (8/10) closed positive with 25 advancers, 8 declines and 2 flats

Friday closed positive with 21 advancers, 11 declines and 3 flats

Thursday closed negative with 11 advancers, 23 decline and 1 flat

Wednesday closed positive with 19 advancers, 15 declines and 1 flat

Tuesday closed negative with 13 advancers, 20 declines and 2 flats

Monday (8/3) closed positive with 31 advancers, 1 decline and 3 flats

 

The Bottom line: Opinion extraction, summarization and tracking are three important techniques for understanding sentiment.

I post about “indication intelligence” devoting my time to collection and analysis of information in the perception of sector vulnerabilities and strengths – it’s more than opinion, some facts in evidence need to be recognized!

On vacation … yet, I end up doing more than usual … there are more weeks in the month!

While many talk about the shift in alternating sentiment, I monitor the pulse and focus of possible outcomes

 

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.