August 25, 2020 7:23pm
Comparing Monday’s losses to today’s gains, it’s all about the comeback
Pre-open indication results: 7 HITs and 1 MISS
The Biostage (BSTG -$0.00) Chronicles: corporate perception is everything, transparency is thoroughly neglected
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The Dow closed DOWN -60.02 points (-0.21%), the S&P closed UP +12.34 points (+0.36%) while the NASDAQ closed UP +86.75 points (+0.76%)
Pre-open indication results: 8 HITs < Applied Genetic Technologies (AGTC +$0.18) Biostage (BSTG -$0.00, Fate Therapeutics (FATE +$0.73), Global Blood Therapeutics (GBT +$1.67), Mesoblast (MESO -$1.04), Vericel (VCEL +$0.55), CRISPR Therapeutics (CRSP +$2.33), Brainstorm Cell Therapeutics (BCLI +$0.11)> and 0 MISS
Henry’omics:
The Dow fell, the S&P 500 gained and the Nasdaq was up – both with new highs on Tuesday.
Mixed economic data set the stage as the U.S. Census reported a 36% surge in sales of newly built homes in July and China and the U.S. resumed trade talks.
- However, the Conference Board’s consumer confidence index fell for a second straight month
- The number of newly confirmed coronavirus infections in the U.S. has dropped.
Market sentiment got a boost after U.S.-China trade talks resumed.
This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: the sector’s oversold are due to rise ... https://www.regmedinvestors.com/articles/11516 .
RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Tuesday opened positive at 18/14 and 3 flats, stayed positive at the mid-day at 29/6 and 2 flats, closing positive at 30/3 and 2 flats;
- Monday opened negative at 14/19 and 2 flats, stayed negative at the mid-day at 8/24 and 3 flats, closing negative at 7/26 and 2 flats;
- Friday opened negative at 12/22 and 1 flat, stayed negative at the mid-day at 10/24 and 1 flat, closing negative at 12/22 and 1 flat;
Key metrics:
- Sector volume was LOW with 1 of the 30-upside having higher than the 3-month average volume and the 2 of 3-downside having higher than the 3-month average volume;
- Tuesday’s percentage (%) of the 30-upside were +0.08% (BLUE) to +5.91% (ATHX) while the 3-downside ranges from -0.64% (BLCM) to -5.56% (MESO);
Hammered in today’s market:
- ReNeuron (RENE.L), Mesoblast (MESO), Bellicum Pharmaceuticals (BLCM) to name 3 of the 3 declining of the 35 covered
Jumping with share pricing momentum:
- Ultragenyx (RARE), Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), Regenxbio (RGNX), Global Blood Therapeutics (GBT) to name 5 of the 30 trading up of 35 covered
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Tuesday, the IBB closed up +1.53% and XBI also closed up +1.20%
- Monday, the IBB closed down -1.17% and XBI also closed down -2.39%
- Friday, the IBB closed down -0.58% and XBI also closed down -1.23%
Tuesday’s (10 of 30) incliners:
- Ultragenyx (RARE +$2.52 after Monday’s -$3.03 and Friday’s -$0.40);
- Alnylam Pharmaceuticals (ALNY +$2.34 after Monday’s -$4.85 and Friday’s +$0.24);
- CRISPR Therapeutics (CRSP +$2.33 after Monday’s -$3.87 after Friday’s -$1.30);
- Regenxbio (RGNX +$1.67 after Monday’s +$0.14 and Friday’s -$0.51);
- Global Blood Therapeutics (GBT +$1.67 after Monday’s -$3.15 and Friday’s +$0.16);
- uniQure NV (QURE +$1.64);
- Editas Medicine (EDIT +$0.79 after Monday’s -$1.85 and Friday’s -$0.68);
- Ionis Pharmaceuticals (IONS +$0.77 after Monday’s -$0.45 and Friday’s -$0.38);
- Fate Therapeutics (FATE +$0.73 after Monday’s -$2.10);
- Intellia therapeutics (NTLA +$0.62);
Tuesday’s (3 of 3) decliners:
- ReNeuron (RENE.L -$1.50);
- Mesoblast (MESO -$1.04 after Monday’s +$0.19 and Friday’s +$0.80);
- Bellicum Pharmaceuticals (BLCM -$0.04);
Closing flat: 2 – Biostage (BSTG) and Stemline Therapeutics (STML – acquired)
Percentage (%) movement/range statistics: 360 degrees comparisons
- Tuesday’s percentage (%) of the 30-upside were +0.08% (BLUE) to +5.91% (ATHX) while the 3-downside ranges from -0.64% (BLCM) to -5.56% (MESO);
- Monday’s percentage (%) of the 7-upside were +0.20% (PSTI) to +4.52% (VYGR) while the 26-downside ranges from -0.09% (FIXX) to -13.58% (BSTG);
- Friday’s percentage (%) of the 12-upside were +0.18% (ALNY) to +21.80% (BSTG) while the 22-downside ranges from -0.36% (BLUE) to -4.12% (PSTI);
Sentiment and a few daily indicators:
Schools and businesses are facing growing uncertainty as the summer months come to an end. Some college students are on the way back home, just days into a new semester marred by campus Covid-19 outbreaks. And remote K-12 learning leaves more than 100,000 homeless New York City students with fewer places to go. The discussion around U.S. use of convalescent plasma as a coronavirus treatment continued, as Food and Drug Administration Commissioner Dr. Stephen Hahn walked back earlier comments on the treatment’s effectiveness. <CNBC
- Tuesday 5.75 cases
- Monday 5.7 cases
- Friday 5.57 cases
- Last Monday 5.4 cases
Tuesday’s day’s death rate totaled 177,773 following Monday’s 176,800 after Friday’s 175,000, Thursday’s 173,600, Wednesday’s 172,418 and last Tuesday’s 171,013 <Johns Hopkins University>
Stats:
Upside volume:
- Tuesday: 1 out of the 30-upside had higher than the 3-month average volume;
- Monday: 0 out of the 7-upside had higher than the 3-month average volume;
- Friday: 3 out of the 12-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Tuesday was down -0.34 points or -1.52% at 22.03
- Monday was down -0.23 points or -1.02% at 22.32
- Friday was down -0.18 points or -0.79% at 22.54
Downside volume:
- Tuesday: 2 out of the 3-downside had higher than the 3-month average volume;
- Monday: 7 out of the 26-downside had higher than the 3-month average volume;
- Friday: 2 out of the 22-downside had higher than the 3-month average volume;
August, the second month of Q3 …
Tuesday closed positive with 30 advancers, 3 decliners and 2 flats
Monday (8/24) closed negative with 7 advancers, 26 decliners and 2 flats
Friday closed negative with 12 advancers, 22 decliners and 1 flat
Thursday closed negative with 12 advancers, 22 decliners and 1 flat
Wednesday closed negative with 16 advancers, 17 decliners and 2 flats
Tuesday closed negative with 13 advancers, 20 decliners and 2 flats
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
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: utilize these rallies in the markets as good opportunities to trim some of your equity exposure.
Volatility sketches a contradictory picture of the short-term.
Reiterating, investors need to be careful ... remember one of my mantras “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.
