September 28, 2020 5:33pm

With low volume setting the tone

Pre-open indication results: 4 HITs 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 +410.10 points (+1.51%), the S&P closed UP +53.14 points (+1.61%) while the Nasdaq closed UP +203.96 points (+1.87%)

 

Henry’omics:

Indexes and stocks rose sharply on Monday built on strong gains from Friday’s (+300-point upside swing) session amid hope for a new deal on U.S. fiscal stimulus.

Indexes also are on track to post steep losses for September, a historically weak month for stocks. The Dow (-3%) and the S&P 500 (-4.3%) have fallen while the Nasdaq (-5.6%) dropped following a massive comeback from the coronavirus sell-off that saw the S&P 500 climb more than 50% from its March bottom.

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: what will be considered normal in this week as September and Q3 come to a close … https://www.regmedinvestors.com/articles/11564

 

Pre-open indications: 4 HITs < Athersys (ATHX +$0.04), Brainstorm Cell Therapeutics (BCLI +$1.00) Sage Therapeutics (SAGE -$0.93), Homology Medicine (FIXX -$0.25)> and 2 MISS < Biostage (BSTG +$0.04), Editas Medicine (EDIT -$0.27)>

 

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

  • Monday opened positive at 23/8 and 4 flats, slipped negative at the mid-day at 15/18 and 2 flats, closing neutral at 16/16 and 3 flats;
  • Friday opened positive at 29/5 and 1 flat, stayed positive at the mid-day at 27/7 and 1 flat, closing positive at 32/2 and 1 flat;

 

Key metrics:

  • Sector volume was extremely LOW with 2 of the 16-upside having higher than the 3-month average volume with the 3 of 16-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 16-upside was +0.52% (RARE) to +10.83 (MESO) while the 16-downside ranges from -0.28% (NTLA) to -4.35% (ADVM); 

 

Hammered in today’s market:

  • bluebird bio (BLUE), CRISPR Therapeutics (CRSP), Sage Therapeutics (SAGE), Global Blood Therapeutics (GBT), Regenxbio (RGNX) to name 5 of the 16 declining of the 35 covered

Jumping with share pricing momentum:

  • Mesoblast (MESO), Fate Therapeutics (FATE), Brainstorm Cell Therapeutics (BCLI), Cellectis SA (CLLS), MiMedx (OTC Pink sheets: MDXG) to name 5 of the 16 inclining of the 35 covered

 

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

  • Monday, the IBB closed up +0.76% and XBI closed up +0.12%
  • Friday, the IBB closed up +2.13% and XBI closed up +2.54%

 

Monday’s (10 of 16) incliners:

  • Fate Therapeutics (FATE +$2.70 after Friday’s +$1.81),
  • Mesoblast (MESO +$1.90),
  • Alnylam Pharmaceuticals (ALNY +$1.50 after Friday’s +$4.97),
  • Brainstorm Cell Therapeutics (BCLI +$1.00 after Friday’s +$0.76),
  • BioLife Solutions (BLFS +$0.78);
  • Ultragenyx (RARE +$0.65 after Friday’s +$2.06);
  • Cellectis SA (CLLS +$0.65)
  • ReNeuron (RENE.L +$0.50 after Friday’s -$4.00);
  • Ionis Pharmaceuticals (IONS +$0.33);
  • MiMedx (OTC Pink sheets: MDXG +$0.22);

Monday’s (10 of 16) decliners:

  • bluebird bio (BLUE -$1.14 after Friday’s +$1.37);
  • uniQure NV (QURE -$0.94);
  • Sage Therapeutics (SAGE -$0.93 after Friday’s +$1.92);
  • Global Blood Therapeutics (GBT -$0.55 after Friday’s +$0.83);
  • Regenxbio (RGNX -$0.49 after Friday’s +$0.84);
  • Adverum Biotechnologies (ADVM -$0.47),
  • CRISPR Therapeutics (CRSP -$0.40 after Friday’s +$0.78);
  • Voyager Therapeutics (VYGR -$0.36 after Friday’s -$0.06);
  • Editas Medicine (EDIT -$0.27);
  • Vericel (VCEL -$0.20);

Closing flat: 3 – Precigen (PGEN), Verastem (VSTM) and Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 16-upside was +0.52% (RARE) to +10.83 (MESO) while the 16-downside ranges from -0.28% (NTLA) to -4.35% (ADVM); 
  • Friday’s percentage (%) of the 32-upside were +0.12% (IONS) to +12.58% (BSTG) while the 2-downside ranges from -0.52% (VYGR) to -4.40% (RENE.L); 

 

Sentiment and a few daily indicators:

Sentiment got a boost after House Speaker Pelosi said Sunday a last-minute coronavirus aid deal remains on the table as House Democrats try to forge ahead on a smaller aid package costing about $2.4 trillion. Pelosi also said she and Treasury Secretary Mnuchin are set to talk on Monday. Still, that price tag is well above what Republican leadership has indicated it will support for a new package. <CNBC>

Infection cases:

  • Monday 7.12 M cases
  • Friday 6.98 M cases

Monday’s death rate totaled 204,881 after Friday’s 202,827, Thursday’s 201,920, Wednesday’s 200,818, Tuesday’s 200,005 and last Monday’s 199,513 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 2 out of the 16-upside had higher than the 3-month average volume;
  • Friday: 4 out of the 32-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was down -0.19 points or -0.72% at 26.19
  • Friday was down -2.13 points or -7.47% at 26.38

Downside volume:

  • Monday: 3 out of the 16-downside had higher than the 3-month average volume;
  • Friday: 0 out of the 2-downside had higher than the 3-month average volume;

 

September, the third month of Q3 …

Monday (9/28) closed neutral with 16 advancer, 16 decliners and 3 flats

Friday closed positive with 32 advancers, 2 decliners and 1 flat

Thursday closed negative with 4 advancers, 29 decliners and 2 flats

Wednesday closed negative with 7 advancers, 27 decliners and 1 flat

Tuesday closed positive with 20 advancers, 13 decliners and 1 flat

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: Indexes rose Monday while RegMed, cell and gene therapy sector shares flipped to the upside, dived and then strolled higher to the close.

I still got on base with three (3) hits of individual “swings” and two (2) misses – one of which I believe is being “pumped” BSTG +$0.04 with 2700 share traded (last week the shares moved two (2) sessions with 700 and 800 shares traded.

 

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.