September 2, 2020 5:23pm

Profit taking, lack of confidence, sentiment which has a snap-off button based on algorithmic rules and it doesn’t take much to disregard fundamentals

Pre-open indication results: 0 HITs and 2 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 UP +454.84 points (+1.59%), the S&P closed UP +54.19 points (+1.54%) while the Nasdaq closed UP +116.78 (+0.98%)

 

Pre-open indication results: 0 HITS and 2 MISS <Biostage (BSTG+$0.03), Mesoblast (MESO -$0.39) >

 

Henry’omics:

U.S. indexes were trading higher Wednesday, as investors drew hope from progress in the development of testing and potential of vaccines for COVID-19 along with the potential for another fiscal stimulus package in Washington.

Investors digested a mixed batch of economic reports, including a private-sector jobs reading that came in weaker than expected, well below the nearly 1 million that had been estimated for the month.

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: lately, volatility can be a pricing death trap … https://www.regmedinvestors.com/articles/11528

 

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

  • Wednesday opened negative at 9/22 and 3 flats, stayed negative at the mid-day at 13/21 and 1 flat, closing negative at 18/25 and 2 flats;
  • Tuesday opened negative at 14/18 and 3 flats, stayed negative at the mid-day at 8/25 and 12 flats, closing negative at 4/29 and 4 flats;
  • Monday opened positive at 17/16 and 2 flats, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 24/8 and 3 flats;

 

Key metrics:

  • Sector volume was LOW with 3 of the 18-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 18-upside were +0.19% (NTLA) to +7.66% (BCLI) while the 25-downside ranges from -0.22% (CLLS) to -4.66% (CLBS); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Ultragenyx (RARE), Fate Therapeutics (FATE), Mesoblast (MESO), uniQure NV (QURE) to name 5 of the 25 declining of the 35 covered

Jumping with share pricing momentum:

  • Sage Therapeutics (SAGE), bluebird bio (BLUE), Global Blood Therapeutics (GBT), Regenxbio (RGNX) to name 5 of the 18 trading up of 35 covered

 

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

  • Wednesday, the IBB closed up +1.47% and XBI also closed up +0.98%
  • Tuesday, the IBB closed down -1.90% and XBI also closed down -2.01%
  • Monday, the IBB closed up +1.92% and XBI also closed up +2.78%

 

Wednesday’s (10 of 18) incliners:

  • Sage Therapeutics (SAGE +$3.10 after Tuesday’s -$1.75 and Monday’s +$2.73);
  • bluebird bio (BLUE +$2.15 after Tuesday’s -$2.05 and Monday’s +$2.55);
  • Global Blood Therapeutics (GBT +$1.79 after Tuesday’s -$2.33 and Monday’s +$0.75);
  • Editas Medicine (EDIT +$1.13);
  • Regenxbio (RGNX +$0.98 after Tuesday’s -$1.04 and Monday’s +$0.65);
  • Brainstorm Cell Therapeutics (BCLI +$0.94);
  • BioLife Solutions (BLFS +$0.87 after Tuesday’s +$1.35);
  • Ionis Pharmaceuticals (IONS +$0.79);
  • CRISPR Therapeutics CRSP +$0.51);
  • Adverum Biotechnologies (ADVM +$0.36);

Wednesday’s (10 of 25) decliners:

  • ReNeuron (RENE.L -$1.90);
  • Ultragenyx (RARE -$1.44 after Tuesday’s -$2.76 and Monday’s -$0.63);
  • Fate Therapeutics (FATE -$0.72 after Tuesday’s -$0.73 and Monday’s +$0.42);
  • Mesoblast (MESO -$0.39);
  • uniQure NV (QURE -$0.39 after Tuesday’s -$0.65 and Monday’s +$1.68);
  • Homology Medicine (FIXX -$0.38 after Tuesday’s +$0.30 and Monday’s -$0.02);
  • AxoGen (AXGN -$0.35 after Tuesday’s +$0.40);
  • Pluristem (PSTI -$0.31);
  • Bellicum Pharmaceuticals (BLCM -$0.15 after Tuesday’s -$0.59 after Monday’s -0.24);
  • MiMedx (OTC Pink sheets: MDXG -$0.10);

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

 

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

  • Wednesday’s percentage (%) of the 18-upside were +0.19% (NTLA) to +7.66% (BCLI) while the 25-downside ranges from -0.22% (CLLS) to -4.66% (CLBS); 
  • Tuesday’s percentage (%) of the 4-upside were +0.38% (VCEL) to +6.33% (BLFS) while the 29-downside ranges from -0.04% (CRSP) to -9.92% (BLCM); 
  • Monday’s percentage (%) of the 24-upside were +0.10% (MESO) to +10.32% (ADRO) while the 8-downside ranges from -0.19% (FIXX) to -4.55% (VSTM); 

 

Sentiment and a few daily indicators:

Shares tied to pandemic stay-at-home trends led the S&P 500 index to record its 21st record close of 2020 and the Nasdaq, its 41st on Tuesday.

  • Wednesday 6.07 cases
  • Tuesday 6.05 cases
  • Monday 6 cases

Wednesday’s day’s death rate totaled 184,600 after Tuesday’s 184,114 after Monday’s 183,200, Friday’s 180.800, Thursday’s 179,700 after last Wednesday’s 178,500 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Wednesday: 3 out of the 18-upside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 4-upside had higher than the 3-month average volume;
  • Monday: 4 out of the 24-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.45 points or +1.72% at 26.57
  • Tuesday was down -0.29 points or -1.10% at 26.12
  • Monday was up +3.45 points or +15.03% at 25.41

Downside volume:

  • Wednesday: 2 out of the 25-downside had higher than the 3-month average volume;
  • Tuesday: 6 out of the 29-downside had higher than the 3-month average volume;
  • Monday: 1 out of the 8-downside had higher than the 3-month average volume;

 

September, the third month of Q3 …

Tuesday closed negative with 18 advancers, 25 decliners and 2 flats

Tuesday (9/1) closed negative with 4 advancers, 29 decliners and 2 flats

 

 

The Bottom line:  Two (2) sessions do not defy the September curse (from yesterday post) Indexes were mostly upbeat Wednesday, with a number of possible catalysts helping the investing mood amid the coronavirus pandemic … U.S. Treasury Secretary Mnuchin has again restarted talks with House Speaker Pelosi, sparking fresh hope of another fiscal stimulus plan to help out-of-work Americans.

 

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.