August 26, 2020 5:03pm

Which can be translated to mean, "wait for the price to bottom out before buying” as value is stripped after rising one (1) and falling five (5) sessions

Pre-open indication results: 1 MISS <Biostage ($0.30) with a caveat, the stock is being “pumped”

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The Dow closed UP +83.48 points (+0.30%), the S&P closed UP +35.11 points (+1.02%) while the NASDAQ closed UP +198.59 points (+1.73%)

 

Pre-open indication results: 1 MISS < Biostage (BSTG +$0.30, the volume of pumping continues to rise exponentially)

 

Henry’omics:

The S&P 500 and Nasdaq rose to fresh record highs on Wednesday, building on their massive rallies off the March lows.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: sector stay the course, please if it helps … https://www.regmedinvestors.com/articles/11518

Wednesday’s gains put the S&P 500 up more than 58% since hitting an intraday low on March 23. The Nasdaq has soared by 75% in that time period.

And I did say … please (in this a.m.’s post), hoping the traders and electronics might just listen – they didn’t.

 

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

  • Wednesday opened negative at 9/21 and 4 flats, stayed negative at the mid-day at 13/13 and 1 flat, closing negative at 8/25 and 2 flats;
  • 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;

 

Key metrics:

  • Sector volume was LOW with 2 of the 8-upside having higher than the 3-month average volume and the 2 of 25-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 8-upside were +0.49% (PSTI) to +21.43% (BSTG) while the 25-downside ranges from -0.01% (CRSP) to -6.05% (SAGE); 

 

Hammered in today’s market:

  • Sage Therapeutics (SAGE), bluebird bio (BLUE), Ultragenyx (RARE), uniQure NV (QURE), Global Blood Therapeutics (GBT) to name 5 of the 25 declining of the 35 covered

Jumping with share pricing momentum:

  • Mesoblast (MESO), Biostage (BSTG), Brainstorm Cell Therapeutics (BCLI), AxoGen (AXGN), BioLife Solutions (BLFS), Cellectis SA (CLLS), Pluristem (PSTI), Bellicum Pharmaceuticals (BLCM) to name 8 of the 8 trading up of 35 covered

 

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

  • Wednesday, the IBB closed down -0.17% and XBI also closed down -1.24%
  • 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%

 

Wednesday’s (8 of 8) incliners:

  • Mesoblast (MESO +$0.67 after Tuesday’s -$1.04 and Monday’s +$0.19);
  • Biostage (BSTG +$0.30);
  • Brainstorm cell Therapeutics (BCLI +$0.30);
  • BioLife Solutions (BLFS +$0.15);
  • Cellectis SA (CLLS +$0.10);
  • AxoGen (AXGN +$0.09);
  • Pluristem (PSTI +$0.05);

Wednesday’s (10 of 25) decliners:

  • Ultragenyx (RARE -$3.47 after Tuesday’s +$2.52 and Monday’s -$3.03);
  • Sage Therapeutics (SAGE -$3.03);
  • bluebird bio (BLUE -$2.80);
  • Global Blood Therapeutics (GBT -$1.93 after Tuesday’s +$1.67 and Monday’s -$3.15);
  • uniQure NV (QURE -$1.81 after Tuesday’s +$1.64);
  • ReNeuron (RENE.L -$1.60 after Tuesday’s -$1.50);
  • Regenxbio (RGNX -$1.33 after Tuesday’s +$1.67 and Monday’s +$0.14);
  • Alnylam Pharmaceuticals (ALNY -$1.04 after Tuesday’s +$2.34 and Monday’s -$4.85);
  • Adverum Biotechnologies (ADVM -$0.60);
  • Voyager Therapeutics (VYGR -$0.56);

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

 

Percentage (%) movement/range statistics: 360 degrees comparisons

  • Wednesday’s percentage (%) of the 8-upside were +0.49% (PSTI) to +21.43% (BSTG) while the 25-downside ranges from -0.01% (CRSP) to -6.05% (SAGE); 
  • 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); 

 

Sentiment and a few daily indicators:

Sentiment on Wednesday was lifted in part by positive news on the coronavirus vaccine front and strong U.S. economic data.  Moderna (MRNA) said its coronavirus vaccine showed promising results in a small trial of patients aged 56 and older. New cases of the coronavirus continue to fall in the U.S., as does testing across the country.

  • Wednesday 5.7 cases
  • Tuesday 5.75 cases
  • Monday 5.7 cases

Wednesday’s day’s death rate totaled 178,500 after Tuesday’s 177,773 following Monday’s 176,800 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Wednesday: 2 out of the 8-upside had higher than the 3-month average 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;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +1.24 points or +5.63% at 23.27
  • Tuesday was down -0.34 points or -1.52% at 22.03
  • Monday was down -0.23 points or -1.02% at 22.32

Downside volume:

  • Wednesday: 2 out of the 25-downside had higher than the 3-month average 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;

 

August, the second month of Q3 …

Wednesday closed negative with 8 advancers, 25 decliners and 2 flats

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:  Well said by others, “When you’re coming off a major low, the first phase of the bull market is really strong, and you tend to get very extended,” said Keith Lerner, chief market strategist at Truist/SunTrust Advisory. Lerner noted, however, that this “tends to be a period where historically you would start to consolidate some of the gains.”

 

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.