September 11, 2020 9:02pm

The sector’s behavior has been unpredictable in September sessions so far, it just may be a sign of something more serious to come

The Biostage (BSTG -$0.35 or -20.35% to $1.37) Chronicles …  WHO is responsible for this transparency emergency; will their accounting firm, RMS US LLP sign off with NO internals - staffing, process and lack of controls or are they also PART of the PROBLEM or even possibly COMPLICIT within these actions to maintain their fees? Questions and answers are needed by this class of public investors?

Pre-open indication results: 1 HIT and 3 MISS

The week in review …

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 +131.06 points (+0.48%), the S&P closed UP +1.78 points (+0.05%) while the Nasdaq closed DOWN -66.05 points (0.60%)

 

Henry’omics:

The Nasdaq indexes fell sharply in volatile trading on Friday as the continuing tech and RegMed, cell and gene therapy sector sell-off drove the benchmark to its worst week in months.

All three of the major averages posted steep losses for the week.

  • The Nasdaq fell 4.1% week to date for its biggest weekly decline since March.
  • The S&P 500 had its worst one-week performance since June, falling 2.5%.
  • The Dow fell 1.7% this week.

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: we are not on a sector trip but, a chase of appreciation that never ends well … https://www.regmedinvestors.com/articles/11540

 

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

  • Friday opened positive at 28/6 and 1 flat, stayed positive at the mid-day at 20/13 and 2 flats, closing negative at 16/17 and 2 flats;
  • Thursday opened positive at 26/5 and 4 flats, stayed positive at the mid-day at 21/12 and 1 flat, closing negative at 12/20 and 3 flats;
  • Wednesday opened positive at 29/5 and 1 flat, stayed positive at the mid-day at 30/3 and 2 flats, closing positive at 27/5 and 3 flats;
  • Tuesday opened positive at 19/15 and 1 flat, stayed positive at the mid-day at 19/14 and 2 flats, closing negative at 14/19 and 2 flats;
  • Monday was a market holiday

 

Pre-open indication results:  1 HIT < Biostage (BSTG -$0.35)> and 3 MISS < CRISPR Therapeutics (CRSP -$1.82), Editas Medicine (EDIT -$0.41), Global Blood Therapeutics (GBT -$0.53)>

 

Key metrics:

  • Sector volume was LOW with 3 of the 16-upside having higher than the 3-month average volume and the 4 of 17-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 16-upside were +0.20% (PSTI) to +11.43% (CLBS) while the 17-downside ranges from -0.21% (ADRO) to -20.35% (BSTG); 

 

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), bluebird bio (BLUE), Regenxbio (RGNX), Global Blood Therapeutics (GBT), Applied Genetic Technologies (AGTC) to name 5 of the 17 declining of the 35 covered

Jumping with share pricing momentum:

  • Fate Therapeutics (FATE), Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS), uniQure NV (QURE) to name 5 of the 16 inclining of the 35 covered

 

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

  • Friday, the IBB closed up +0.49% and XBI also closed down -0.07%
  • Thursday, the IBB closed down -1.69% and XBI also closed down -1.56%
  • Wednesday, the IBB closed up +1.95% and XBI also closed up +2.21%
  • Tuesday, the IBB closed down -1.86% and XBI also closed down -1.35%
  • Monday was a market holiday

 

Friday’s (10 of 17) incliners:

  • Fate Therapeutics (FATE +$1.82 after Thursday’s +$0.45, Wednesday’s +$0.88 and Tuesday’s -$0.70);
  • Sage Therapeutics (SAGE +$1.48 after Thursday’s +$2.65, Wednesday’s +$0.57 and Tuesday’s -$0.63);
  • Alnylam Pharmaceuticals (ALNY +$1.25 after Thursday’s -$1.87);
  • Ionis Pharmaceuticals (IONS +$0.45 after Thursday’s -$1.63);
  • uniQure NV (QURE +$0.41 after Thursday’s -$0.97);
  • Intellia Therapeutics (NTLA +$0.32 after Thursday’s +$0.12, Wednesday’s +$1.35 and Tuesday’s -$0.65);
  • Adverum Biotechnologies (ADVM +$0.31);
  • Cellectis SA (CLLS +$0.29 after Thursday’s +$0.41 and Wednesday’s +$0.79);
  • Vericel (VCEL +$0.26 after Thursday’s +$0.58);
  • BioLife Solutions (BLFS +$0.22 after Friday’s +$0.37 and Wednesday’s +$1.08);

Friday’s (10 of 16) decliners:

  • CRISPR Therapeutics (CRSP -$1.82 after Thursday’s -$3.45, Wednesday’s +$3.79 and Tuesday’s-$0.56);
  • bluebird bio (BLUE -$1.66 after Thursday’s -$2.50 and Wednesday’s +$0.96);
  • Regenxbio (RGNX -$0.67);
  • Global Blood Therapeutics (GBT -$0.53 after Thursday’s -$4.47 and Wednesday’s -$0.98);
  • Applied Genetic Technologies (AGTC -$0.48);
  • Ultragenyx (RARE -$0.44 after Thursday’s -$2.06, Wednesday’s +$3.35 and Tuesday’s -$2.83);
  • Editas Medicine (EDIT -$0.41 after Thursday’s -$0.55, Wednesday’s +$1.70 and Tuesday’s -$1.22);
  • Brainstorm Cell Therapeutics (BCLI -$0.39 after Thursday’s +$0.37);
  • AxoGen (AXGN -$0.37);
  • Biostage (BSTG -$0.35 after Thursday’s +$0.37 and Wednesday’s -$0.12);

Closing flat: 2 –ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)

 

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

  • Friday’s percentage (%) of the 16-upside were +0.20% (PSTI) to +11.43% (CLBS) while the 17-downside ranges from -0.21% (ADRO) to -20.35% (BSTG); 
  • Thursday’s percentage (%) of the 12-upside were +0.64% (NTLA) to +27.41% (BSTG) while the 20-downside ranges from -0.93% (RGNX) to -7.74% (GBT); 
  • Wednesday’s percentage (%) of the 5-upside were +0.06% (ALNY) to +7.73% (NTLA) while the 27-downside ranges from -0.40% (ADRO) to -14.19% (AGTX); 
  • Tuesday’s percentage (%) of the 14-upside were +0.13% (ALNY) to +8.89% (BSTG) while the 19-downside ranges from -0.06% (VCEL) to -5.26% (ADRO); 
  • Monday was a market holiday

 

Sentiment and a few daily indicators:

Markets were coming off a weekly session in which the major averages fluctuated. Today’s losses came after the benchmarks gave up solid gains.

The Labor Department said Friday its U.S. consumer price index rose by 0.4% in August. Economists expected an increase of 0.3%. This larger-than-expected advance was driven the biggest cost increase for used cars and trucks in more than 51 years.

 Infections rates:

  • Friday 6.41 cases
  • Thursday 6.38 cases
  • Wednesday 6.32 cases
  • Tuesday 6.31 cases
  • Monday was a holiday

Friday’s day’s death rate totaled 192,448 after Thursday’s 191,536, Wednesday’s 189,600 and Tuesday’s 189,366 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Friday: 3 out of the 16-upside had higher than the 3-month average volume;
  • Thursday: 5 out of the 12-upside had higher than the 3-month average volume;
  • Wednesday: 1 out of the 27-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 14-upside had higher than the 3-month average volume;
  • Monday was a holiday

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -2.84 points or -9.56% at 26.87
  • Thursday was up +0.90 points or +3.12% at 29.71
  • Wednesday was down -2.65 points or -8.42% at 28.81
  • Tuesday was up +0.71 points or +2.31% at 31.46
  • Monday was a holiday

Downside volume:

  • Friday: 4 out of the 17-downside had higher than the 3-month average volume;
  • Thursday: 4 out of the 20-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 5-downside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 19-downside had higher than the 3-month average volume;
  • Monday was a holiday

 

September, the third month of Q3 …

Friday closed negative with 16 advancers, 17 decliners and 2 flats

Thursday closed negative with 12 advancers, 20 decliners and 3 flats

Wednesday closed positive with 27 advancers, 5 decliners and 3 flats

Tuesday (9/10) closed negative with 14 advancers, 19 decliners and 2 flats

Monday was a holiday 

Friday closed negative with 5 advancers, 28 decliners and 2 flats

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: today’s session gains quickly faded as the month’s lows overcame negligible support o hold-on to any gain.

The next week of sessions will be crucial in judging the possible extent of the pullback, especially with September and Q3 closing.

Keep your eyes on 50-day moving averages!

 

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.