September 3, 2020 5:28pm

Markets got ahead of itself, stocks go down faster then they go up

Pre-open indication results: 3 HITs and 2 MISS

Biostage (BSTG -$0.13 or -8.78%) Chronicles:  non-responsive answers from questions from chief scientific officer, William Fodor, PhD re LACK of clinical trial initiative …

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The Dow closed DOWN -807.77 points (-2.78%), the S&P closed DOWN -125.78 points (-3.51%) while the Nasdaq closed DOWN -598.34 (-4.96%)

 

Pre-open indication results: 3 HITS <Applied Genetic Technologies (AGTC +$0.67), Biostage (BSTG-$0.13), Athersys (ATHX -$0.16) and 2 MISS <Mesoblast MESO -$0.73), Ionis Pharmaceuticals (IONS -$0.21)>

 

Henry’omics:

Indexes fell sharply on Thursday, retreating from all-time highs since the rebound began in late March — suffered its biggest drop in months.

Great quote from others highlights the session, “I’m not sure that just today’s weakness is sufficient enough to ease some of those excesses and tell the short-term folks this is the kind of dip you want to buy. I don’t have a clear crystal ball more than anybody else, but certainly the excess suggests something more than a single-day compression in the high-flyers may be necessary to kind of right the ship,” Liz Ann Sonders, chief investment strategist at Charles Schwab. <CNBC>

This a.m. I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: as indexes dip, exit early for a long holiday weekend … https://www.regmedinvestors.com/articles/11530

 

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

  • Thursday opened negative at 11/20 and 4 flats, stayed negative at the mid-day at 2/32 and 1 flat, closing negative at 2/32 and 1 flat;
  • 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 (9/1) 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 2 of the 2-upside having higher than the 3-month average volume and the 6 of 32-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 2-upside were +0.38% (IONS) to +13.01% (AGTC) while the 32-downside ranges from -0.40% (SGMO) to -13.43% (NTLA); 

 

Hammered in today’s market:

  • Intellia Therapeutics (NTLA), Editas Medicine (EDIT), Biostage (BSTG), CRISPR Therapeutics (CRSP) to name 5 of the 32 declining of the 35 covered

Jumping with share pricing momentum:

  • Applied Genetic Technologies (AGTC), Ions Pharmaceuticals (IONS) to name 2 of the 2 trading up of 35 covered

 

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

  • Thursday, the IBB closed down -3.75% and XBI also closed down -3.73%
  • 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%

 

Thursday’s (2 of 2) incliners:

  • Applied Genetic Technologies (AGTC +$0.67);
  • Ionis Pharmaceuticals (IONS +$0.21 after Wednesday’s +$0.79);

Thursday’s (10 of 32) decliners:

  • CRISPR Therapeutics CRSP -$8.24 after Wednesday’s +$0.51);
  • Alnylam Pharmaceuticals (ALNY -$5.47);
  • Editas Medicine (EDIT -$4.22 after Wednesday’s +$1.13);
  • Intellia Therapeutics (NTLA -$2.85);
  • Ultragenyx (RARE -$2.77 after Wednesday’s -$1.44, Tuesday’s -$2.76 and Monday’s -$0.63);
  • Fate Therapeutics (FATE -$2.56 after Wednesday’s -$0.72, Tuesday’s -$0.73 and Monday’s +$0.42);
  • Global Blood Therapeutics (GBT -$1.81 after Wednesday’s +$1.79, Tuesday’s -$2.33 and Monday’s +$0.75);
  • Sage Therapeutics (SAGE -$1.59 after Wednesday’s +$3.10, Tuesday’s -$1.75 and Monday’s +$2.73);
  • ReNeuron (RENE.L -$1.50 after Wednesday’s -$1.90);
  • Cellectis SA (CLLS -$1.40);

Closing flat: 1 –Stemline Therapeutics (STML – acquired)

 

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

  • Thursday’s percentage (%) of the 2-upside were +0.38% (IONS) to +13.01% (AGTC) while the 32-downside ranges from -0.40% (SGMO) to -13.43% (NTLA); 
  • 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:

The Centers for Disease Control and Prevention has asked state governors and health departments to prepare to distribute a vaccine as soon as November. In a letter dated Aug. 27, CDC Director Robert Redfield said states will receive permit applications from medical supply company McKesson, which HHS tapped to help distribute the vaccine, “in the near future” and may need to waive some licensing and permit requirements that could delay the process. <CNBC>

  • Thursday 6.11 cases
  • Wednesday 6.07 cases
  • Tuesday 6.05 cases
  • Monday 6 cases

Thursday’s day’s death rate totaled 185,700 after Wednesday’s 184,600, Tuesday’s 184,114, Monday’s 183,200, Friday’s 180.800 and last Thursday’s 179,700 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Thursday: 2 out of the 2-upside had higher than the 3-month average 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:

  • Thursday was up +7.03 points or +26.46% at 33.60
  • 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:

  • Thursday: 6 out of the 32-downside had higher than the 3-month average 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 …

Thursday closed negative with 2 advancers, 32 decliners and 1 flat

Wednesday 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:  I have stated emphatically throughout this period, new then newer highs scare me.

Thursday’s moves came after another record-setting session for the S&P 500 and the Nasdaq, which also added to the market’s strong move off the March 23 lows.

 

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.