September 21, 2020 4:54pm
Look at a positive view, it’s a reset for the overbought with stimulus for the oversold
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.
News: BioLife Solutions (BLFS -$0.81) has entered into a definitive agreement to acquire SciSafe, a privately held multi-facility provider of biological materials storage to the cell and gene therapy and pharmaceutical industries. The transaction is expected to close on September 30th for $15 million upfront and stock worth $15 million. MiMedx (OTC Pink sheets: MDXG -$0.13) concluded enrollment into its P2B study of its micronized injectable amniotic tissue product in patients with osteoarthritis (OA) of the knee (KOA) and a Q3 revenue recognition.
Subscription is coming, my gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!
The Dow closed DOWN -509.72 points (-1.84%), the S&P closed down -38.41 points (-1.16%) while the Nasdaq closed DOWN -14.48 points (-0.13%)
Henry’omics:
Indexes dived sharply on Monday as multiple political factors undermined fears about the worsening coronavirus as well as uncertainty on further fiscal stimulus.
As I stated this a.m.: “Investors are caught-up in Washington’s Supreme Court acrimony, post quadruple witching actions, while EU slides on coronavirus infection rates and Asia dives on money-laundering allegations and then there is the TikTok “deal” questions and WeChat legal issues. Let’s not forget Shares of GM slip and Nikola, a one-time high-flying SPAC-turned electric vehicle play, dropped 27% in pre-market trading…so far.”
These declines added to what has been a downbeat month. The S&P 500 is down more than 6% in September, the Dow has lost 4.5% and the Nasdaq Composite has tumbled 8.5% month to date and has reentered correction territory.
This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: indexes are sinking the pre-open … https://www.regmedinvestors.com/articles/11553
The S&P 500, Dow and Nasdaq are coming off their third (3rd) straight weekly drop, marking their longest weekly slide since 2019.
RegMed/Cell and Gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Monday opened negative at 1/32 and 2 flats, stayed negative at the mid-day at 1/33 and 1 flat, closing negative at 1/33 and 1 flat;
- Friday opened positive at 22/11 and 2 flats, stayed positive at the mid-day at 18/16 and 1 flat, closing positive at 29/5 and 1 flat;
Key metrics:
- Sector volume was NEGLITABLE with 0 of the 1-upside having higher than the 3-month average volume and the 1 of 33-downside having higher than the 3-month average volume;
- Monday’s percentage (%) of the 1-upside was +12.26% (BSTG) while the33-downside ranges from -0.86% (VYGR) to -10.64% (PGEN);
Hammered in today’s market:
- uniQure NV (QURE), Sage Therapeutics (SAGE), Ultragenyx (RARE), bluebird bio (BLUE), Regenxbio (RGNX) to name 5 of the 33 declining of the 35 covered
Jumping with share pricing momentum:
- Biostage (BSTG) to name 1 of the 1 inclining of the 35 covered
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Monday, the IBB closed down -2.56% and XBI closed down -3.55%
- Friday, the IBB closed up +0.51% and XBI closed up +1.10%
Monday’s (2 of 2) incliners:
- Biostage (BSTG +$0.19 with 834 shares traded) by its funder purchasing own stock;
Monday’s (10 of 33) decliners:
- UniQure NV (QURE -$2.96);
- Sage Therapeutics (SAGE -$2.57 after Friday’s +$2.35);
- Ultragenyx (RARE -$2.42);
- Regenxbio (RGNX -$2.19);
- Fate Therapeutics (FATE -$2.08 after Friday’s +$2.34);
- bluebird bio (BLUE -$2.16);
- Editas Medicine (EDIT -$1.56 after Friday’s +$1.20);
- Cellectis SA (CLLS -$1.42);
- Alnylam Pharmaceuticals (ALNY -$1.34);
- Intellia Therapeutics (NTLA -$1.26);
Closing flat: 1 - Stemline Therapeutics (STML – acquired)
Percentage (%) movement/range statistics: 360 degrees comparisons
- Monday’s percentage (%) of the 1-upside was +12.26% (BSTG) while the33-downside ranges from -0.86% (VYGR) to -10.64% (PGEN);
- Friday’s percentage (%) of the 29-upside were +0.02% (QURE) to +12.17% (BLCM) while the 5-downside ranges from -0.94% (MESO) to -5.06% (SLDB);
Sentiment and a few daily indicators:
In Washington, negotiations for a new coronavirus stimulus bill could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. President Donald Trump said he would nominate someone this week to take Ginsburg’s seat. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired. <CNBC>
Operation Warp Speed leader says U.S. could immunize many of the vulnerable Americans by December.
Infections rates:
- Monday 6.81 M cases
- Friday’s 6.67 cases
Monday’s day’s death rate totaled 199,513 after Friday’s 197,655, Thursday’s 196,831, Wednesday’s 196,023, Tuesday’s 194,547 and last Monday’s 194,000 <Johns Hopkins University>
Stats:
Upside volume:
- Monday: 0 out of the 1-upside had higher than the 3-month average volume;
- Friday: 19 out of the 29-upside had higher than the 3-month average volume;
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Monday was up +1.87 points or +7.24% at 27.71
- Friday was down -0.63 points or -2.38% at 25.83
Downside volume:
- Monday: 1 out of the33-downside had higher than the 3-month average volume;
- Friday: 3 out of the 5-downside had higher than the 3-month average volume;
September, the third month of Q3 …
Monday (9/21) closed negative with 1 advancer, 33 decliners and 1 flat
Friday closed positive with 29 advancers, 5 decliners and 1 flat
Thursday closed negative with 13 advancers, 20 decliners and 2 flats
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: As I had stated in the a.m. newsletter, “I’m NOT trusting ANY indicator today. I believe a sell-off is coming again … as September hasn’t made investors happy.
Seasonal and emotional trading patterns are at play. The financial markets are entering a most treacherous time.
Right yet again ...
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.
