August 17, 2020 5:31pm

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.

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The Dow closed DOWN -86.11 points (-0.31 %), the S&P closed UP +9.14 points (+0.27%) while the NASDAQ closed UP +110.42 points (+1%)

 

Pre-open indication results: 6 HITs < Biostage (BSTG -$0.04), Alnylam Pharmaceuticals (ALNY +$4.56), Pluristem (PSTI +$0.96), Global Blood Therapeutics (GBT +$3.43),   bluebird bio (BLUE +$2.59), SELL into strength - Mesoblast (MESO +$1.93), > and 1 MISS <Editas Medicine (EDIT +$1.73>

 

Henry’omics:

The S&P gained; the Nasdaq advanced as the Dow lagged.

  • Despite Monday’s gains, the S&P 500 failed to close above its Feb. 19 record closing high of 3,386.15;
  • This struggle to climb back into record territory comes as trading volumes have fallen off significantly;
  • The lack of a stimulus package is rightly causing some concern;
  • On the U.S.-China front,” Trump issued an executive order on Friday forcing ByteDance to sell or spin off its U.S. TikTok business in 90 days. Trump cited credible evidence that ByteDance might take action that threatens to impair the national security of the United States.”

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: RegMed Investors’ (RMi) pre-open: not trusting this market … https://www.regmedinvestors.com/articles/11504

Enjoy the highs while they last

 

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

  • Monday opened positive at 27/7 and 1 flat, stayed positive at the mid-day at 29/4 and 2 flats, closing positive at 29/4 and 2 flats;
  • Friday opened positive at 11/22 and 2 flats, stayed negative at the mid-day at 10/23 and 2 flats, closing negative at 10/23 and 2 flats;

 

Key metrics:

  • Sector volume was LOW with 5 of the 29-upside having higher than the 3-month average volume and the 2 of 4-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 29-upside were +0.58% (CLLS) to +13.26% (PGEN) while the 4-downside ranges from -1.82 (BSTG) to -3.05% (BLCM); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Bellicum Pharmaceuticals (BLCM), Solid Biosciences (SLDB), Biostage (BSTG) to name 4 of the 4 declining of the 35 covered

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), Global Blood Therapeutics (GBT), Sage Therapeutics (SAGE), bluebird bio (BLUE), Ultragenyx (RARE) to name 5 of the 29 trading up of 35 covered

 

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

  • Monday, the IBB closed up +1.97% and XBI also closed up +3.50%
  • Friday, the IBB closed down -0.48% and XBI also closed down -0.93%

 

Monday’s (10 of 29) incliners:

  • Alnylam Pharmaceuticals (ALNY +$4.56 after Friday’s -$1.29);
  • Global Blood Therapeutics (GBT +$3.43);
  • Sage Therapeutics (SAGE +$3.41);
  • bluebird bio (BLUE +$2.59 after Friday’s -$1.23);
  • Ultragenyx (RARE +$2.45 after Friday’s -$0.78);
  • CRISPR Therapeutics (CRSP +$2.15 after Friday’s -$2.24);
  • Mesoblast (MESO +$1.93 after Friday’s +$6.07 after a positive FDA review);
  • Editas Medicine (EDIT +$1.73 after Friday’s -$0.40);
  • Ionis Pharmaceuticals (IONS +$1.21);
  • Brainstorm Cell Therapeutics (BCLI +$1.12);

Monday’s (4 of 4) decliners:

  • ReNeuron (RENE.L -$2.50);
  • Bellicum Pharmaceuticals (BLCM -$0.21);
  • Solid Biosciences (SLDB -$0.06 after Friday’s +$0.06);
  • Biostage (BSTG -$0.04 (was down -$0.20 before close) after Friday’s -$0.45 after Thursday’s -$0.22);

Closing flat: 2 – Verastem (VSTM) and Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: comparisons

  • Monday’s percentage (%) of the 29-upside were +0.58% (CLLS) to +13.26% (PGEN) while the 4-downside ranges from -1.82 (BSTG) to -3.05% (BLCM); 
  • Friday’s percentage (%) of the 10-upside were +0.83% (ATHX) to +51.40% (MESO) while the 23-downside ranges from -0.18% (VYGR) to -16.98% (BSTG); 

 

Sentiment and a few daily indicators:

The S&P 500 is overbought into key resistance, negotiations of coronavirus aid drag are stalemated; yet, consumer discretionary is the best-performing sector in the S&P 500, rising 0.8%.

  • Monday 5.4 cases
  • Friday 5.25 cases
  • Last Monday 5.05 cases,

Monday’s death rate totaled 170,000 after Friday’s 167,200, Thursday’s 166,623, Wednesday’s 164,900, Tuesday’s 163,400 and last Monday’s 162,950 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 5 out of the 29-upside had higher than the 3-month average volume;
  • Friday: 2 out of the 10-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -0.70 points or -3.17% at 21.35
  • Friday was down -0.08 points or -0.36% at 22.05

Downside volume:

  • Monday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Friday: 1 out of the 23-downside had higher than the 3-month average volume;

 

August, the second month of Q3 … line up for the roller-coaster

Monday (8/17) closed positive with 29 advancers, 4 declines and 2 flats

Friday closed negative with 10 advancers, 23 decline and 2 flats

Thursday closed positive with 19 advancers, 11 decline and 4 flats

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:  On vacation … yet, I end up doing more than usual … there will be a re-do!

I am back to my constant theme; new highs scare me and are usually the time to SELL into STRENGTH.

The S&P 500 index made two failed attempts last week to take out its record close from February, causing some investors to worry the rally is running out of steam. Maybe not …

However, investors should be prepared for some profit-taking.

One can’t hit the casinos, bet what sports so – speculated in sectors and markets; not, that I don’t appreciated the highs but the oversold end up overbought and the algorithms electronic trading wins the next round again!

 

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.