September 16, 2020 7:31pm

Fed agrees to keep interest rates at zero and pledged to keep rates there until inflation rises consistently, as Dow jumps, S&P slips while Nasdaq slides

Pre-open indication results: 11 HIT and 0 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 +36.78 points (+0.13%), the S&P closed down -15.71 points (-0.46%) while the Nasdaq closed DOWN -139.85 points (-1.25%)

 

Henry’omics:

Wednesday, the Fed indicated it will keep interest rates lower over the next few years – the S&P 500 gave up its earlier gains on Wednesday as the RegMed, cell and gene therapy sector didn’t suffer all that much.

The elephant in the room (problem) in the economy is Republicans and Democrats have struggled to reach a deal on further stimulus, dwindling hopes of an agreement being struck before the U.S. presidential election in November.

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: don’t chase pricing, follow fundamentals … https://www.regmedinvestors.com/articles/11547

 

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

  • Wednesday opened positive at 25/9 and 1 flat, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 23/10 and 2 flats;
  • Tuesday opened positive at 22/11 and 2 flats, stayed positive at the mid-day at 27/7 and 1 flat, closing positive at 22/12 and 1 flat;
  • Monday opened positive at 32/2 and 1 flat, stayed positive at the mid-day at 30/4 and 1 flat, closing positive at 31/3 and 1 flat;

 

Pre-open indication results:  11 HITs < Biostage (BSTG -$0.14), bluebird bio (BLUE +$1.44), Global Blood Therapeutics (GBT +$0.58), sell into strength and profit - Athersys (ATHX -$0.00), BioLife Solutions (BLFS -$1.88), Fate Therapeutics (FATE -$0.64), CRISPR Therapeutics (CRSP +$0.70), Editas Medicine (EDIT +$1.32), Intellia Therapeutics (NTLA +$0.70), Sage Therapeutics (SAGE +$0.62), Ultragenyx Pharmaceuticals (RARE +$1.17) and 0 miss

 

Key metrics:

  • Sector volume was LOW with 6 of the 23-upside having higher than the 3-month average volume and the 7 of 10-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 23-upside were +0.16% (ADVM) to +19.81% (AXGN) while the 10-downside ranges from -0.14% (FIXX) to -9.03% (BSTG); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), BioLife Solutions (BLFS), Ionis Therapeutics (IONS), fate Therapeutics (FATE), Bellicum Pharmaceuticals (BLCM), Biostage (BSTG), Precigen (PGEN), Sangamo Therapeutics (AGMO), Verastem (VSTM), Homology Medicine (FIXX) to name 10 of the 10 declining of the 35 covered

Jumping with share pricing momentum:

  • uniQure NV (QURE), AxoGen (AXGN), bluebird bio (BLUE), Ultragenyx (RARE), Vericel (VCEL) to name 5 of the 23 inclining of the 35 covered

 

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

  • Wednesday, the IBB closed up +0.09% and XBI closed up +2.19%
  • Tuesday, the IBB closed up +1.01% and XBI closed up +0.94%
  • 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%

 

Wednesday’s (10 of 23) incliners:

  • Alnylam Pharmaceuticals (ALNY +$1.04 after Tuesday’s -$0.49 and Monday’s +$8.56);
  • uniQure NV (QURE +$3.58 after Tuesday’s -$2.08);
  • AxoGen (AXGN +$2.13);
  • bluebird bio (BLUE +$1.44 after Tuesday’s -$0.87);
  • Editas Medicine (EDIT +$1.32 after Tuesday’s +$0.57);
  • Ultragenyx (RARE +$1.17 after Tuesday’s +$3.99 after Monday’s +$4.41);
  • Vericel (VCEL +$0.83 after Tuesday’s +$0.53);
  • Alnylam Pharmaceuticals (ALNY +$0.77);
  • Intellia Therapeutics (NTLA +$0.70 after Tuesday’s +$1.35 and Monday’s +$1.66);
  • CRISPR Therapeutics (CRSP +$0.70 after Tuesday’s +$0.88 after Monday’s +$4.73);
  • Regenxbio (RGNX +$0.62);

Wednesday’s (10 of 10) decliners:

  • ReNeuron (RENE.L -$2.00 after Tuesday’s-$5.00 and Monday’s -$3.50);
  • BioLife Solutions (BLFS -$1.88 after Tuesday’s +$1.76 and Monday’s +$2.15);
  • Ionis therapeutics (IONS -$1.16 after Tuesday’s -$0.81 and Monday’s +$1.77);
  • Fate Therapeutics (FATE -$0.64);
  • Bellicum Pharmaceuticals (BLCM -$0.38 after Tuesday’s +$0.73);
  • Biostage (BSTG -$0.14 after Tuesday’s +$0.14 and Monday’s +$0.04);
  • Precigen (PGEN -$0.11);
  • Sangamo Therapeutics (SGMO -$0.07 after Tuesday’s -$0.15);
  • Verastem (VSTM -$0.03);
  • Homology Medicine (FIXX -$0.02 after Tuesday’s -$0.05);

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

 

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

  • Wednesday’s percentage (%) of the 23-upside were +0.16% (ADVM) to +19.81% (AXGN) while the 10-downside ranges from -0.14% (FIXX) to -9.03% (BSTG); 
  • Tuesday’s percentage (%) of the 22-upside were +0.07% (BCLI) to +13.93% (AGTC) while the 12-downside ranges from -0.37% (ALNY) to -8.09% (PSTI); 
  • 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); 

 

Sentiment and a few daily indicators:

Sentiment was enhanced by “Fed Chairman Jerome Powell reiterated this statement, telling reporters in a news conference: “We expect to maintain an accommodative stance of monetary policy until these outcomes, including maximum employment, are achieved.” <CNBC>

Infections rates:

  • Wednesday’s 6.6 M
  • Tuesday 6.55 M cases
  • Monday 6.52 M cases

Wednesday’s day’s death rate totaled 196,023 after Tuesday’s 194,547, Monday’s 194,000 after Friday’s 192,448, Thursday’s 191,536 and last Wednesday’s 189,600 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Wednesday: 6 out of the 23-upside had higher than the 3-month average volume;
  • Tuesday: 6 out of the 22-upside had higher than the 3-month average volume;
  • Monday: 12 out of the 31-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.45 points or +1.76% at 26.04
  • Tuesday was down -0.26 points or -1.01% at 25.59
  • Monday was down -1.02 points or -3.80% at 25.85

Downside volume:

  • Wednesday: 7 out of the 10-downside had higher than the 3-month average volume;
  • Tuesday: 1 out of the 12-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 3-downside had higher than the 3-month average volume;

 

September, the third month of Q3 …

Wednesday closed positive with 23 advancers, 10 decliners and 2 flats

Tuesday closed positive with 22 advancers, 12 decliners and 1 flat

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:  Let the sector roll to the upside … however, the opposite is that its faster rolling downhill than up.

My contrarian nature is not pessimistic but, reality based – it’s just about timing.

Reap profits while one can and then buy into those deepening dips which are coming; Q3 is coming to an end.

 

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.