September 14, 2020 5:36pm

Amid renewed hope for a vaccine

Pre-open indication results: 3 HIT 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 +327.69 points (+1.18%), the S&P closed UP +42.57 points (+1.27%) while the Nasdaq closed UP +203.11 points (+1.87%)

 

Henry’omics:

Sector stocks rose on Monday with an M&A i.e. Gilead Sciences (GILD) and Immunomedics (IMMU) and positive news regarding coronavirus vaccine research sparked a broad market rally.

The iShares Nasdaq Biotechnology ETF was up more than 5%. Sentiment also got a boost as AstraZeneca resumed phase three (3) trials for its coronavirus vaccine in the U.K. following a halt for safety concerns.

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: struggling with volatility … https://www.regmedinvestors.com/articles/11543

 

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

  • Monday opened positive at 32/2 and 1 flat, stayed positive at the mid-day at xx/13 and 2 flats, closing positive at 31/3 and 1 flat;
  • 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;

 

Pre-open indication results:  3 HITs < Alnylam Pharmaceuticals (ALNY +$8.56), Global Blood Therapeutics (GBT +$3.40), Sage Therapeutics (SAGE +$1.58)> and 2 MISS <Ionis Pharmaceuticals (IONS +$1.77), Biostage (BSTG +$0.04)>

 

Key metrics:

  • Sector volume was LOW with 12 of the 31-upside having higher than the 3-month average volume and the 2 of 3-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 31-upside were +1.69% (BLUE) to +14.75% (VSTM) while the 3-downside ranges from -1.67% (AXGN) to -3.65% (RENE.L); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Applied Genetic Technologies (AGTC), AxoGen (AXGN) to name 3 of the 3 declining of the 35 covered

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Global Blood Therapeutics (GBT), Fate Therapeutics (FATE) to name 5 of the 31 inclining of the 35 covered

 

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

  • Monday, the IBB closed up +5.42% and XBI closed up +6.89%
  • Friday, the IBB closed up +0.49% and XBI closed down -0.07%

 

Monday’s (10 of 31) incliners:

  • Alnylam Pharmaceuticals (ALNY +$8.56 after Friday’s +$1.25);
  • CRISPR Therapeutics (CRSP +$4.73 after Friday’s -$1.82);
  • Fate Therapeutics (FATE +$3.88 after Friday’s +$1.82);
  • Ultragenyx (RARE +$4.41 after Friday’s -$0.44);
  • Global Blood Therapeutics (GBT +$3.40 after Friday’s -$0.53);
  • BioLife Solutions (BLFS +$2.15 after Friday’s +$0.22);
  • Ionis Pharmaceuticals (IONS +$1.77 after Friday’s +$0.45);
  • Regenxbio (RGNX +$1.66 after Friday’s -$0.67);
  • Cellectis SA (CLLS +$1.66 after Friday’s +$0.29);
  • Intellia Therapeutics (NTLA +$1.66 after Friday’s +$0.32);

Monday’s (3 of 3) decliners:

  • ReNeuron (RENE.L -$3.50);
  • AxoGen (AXGN -$0.18 after Friday’s -$0.37);
  • Applied Genetic Technologies (AGTC -$0.17 after Friday’s -$0.48);

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

 

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

  • Monday’s percentage (%) of the 31-upside were +1.69% (BLUE) to +14.75% (VSTM) while the 3-downside ranges from -1.67% (AXGN) to -3.65% (RENE.L); 
  • 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); 

 

Sentiment and a few daily indicators:

Sentiment was boosted by signs of progress toward a coronavirus vaccine. AstraZeneca (AZN) resumed phase three trials for its coronavirus vaccine in the U.K. following a halt due to safety concerns. However, its trials in the U.S. remains on hold as American regulators investigate the side effects flagged in the U.K. study.

Pfizer’s coronavirus vaccine could be distributed in the U.S. before the year-end. <CNBC>

Infections rates:

  • Monday 6.52 cases
  • Friday 6.41 cases

Monday’s day’s death rate totaled 194,000 after Friday’s 192,448, Thursday’s 191,536, Wednesday’s 189,600 and last Tuesday’s 189,366 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 12 out of the 31-upside had higher than the 3-month average volume;
  • Friday: 3 out of the 16-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -1.02 points or -3.80% at 25.85
  • Friday was down -2.84 points or -9.56% at 26.87

Downside volume:

  • Monday: 2 out of the 3-downside had higher than the 3-month average volume;
  • Friday: 4 out of the 17-downside had higher than the 3-month average volume;

 

September, the third month of Q3 …

Monday (9/14) closed positive with 31 advancers, 3 decliners and 1 flat

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: Market caps had been hammered yet, extended their reach despite recent declines as market emotion and sentiment blows with the wind which should position caution as a leading indicator.

Sustainability will be the KEY word of this newest up market after all the losses.

 

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.