September 30, 2020 6:07pm

A barometer of markets - increases in COVID cases and hospitalizations

Pre-open indication results: 6 HITs and 1 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 +329.04 points (+1.20%), the S&P closed UP +27.53 points (+0.83%) while the Nasdaq closed UP +82.26 points (+0.74%)

 

Henry’omics:

Indexes climbed in volatile trading on Wednesday amid rising hopes for further coronavirus stimulus, but major averages still posted their first down month since March.

The S&P 500 dropped -3.9% this month, while the Dow dived -2.3% and the Nasdaq fell -5.2%, respectively, in September.

From today’s Data Docket: ADP’s monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey. Meanwhile, pending home sales soared 8.8% in August, marking its highest pace on record, according to the National Association of Realtors survey.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: “Humpty Dumpty sat on the wall … Was not an egg but, a cannon that fired and fell off a battlement and was unable to be saved; the rhyme symbolized Tuesday’s debate actions and reveal more uncertainty of the election process” … https://www.regmedinvestors.com/articles/11568

 

Pre-open indications: 6 HITs < Sell into Strength - Brainstorm Cell Therapeutics (BCLI +$0.60), BioLife Solutions (BCLI +$0.09), Mesoblast (MESO -$0.62), CRISPR Therapeutics (CRSP -$1.78), Regenxbio (RGNX -$0.72), Alnylam Pharmaceuticals (ALNY +$0.29)> and 1 MISS <Biostage (BSTG +$0.05)>

 

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

  • Wednesday opened positive at 22/12 and 1 flat, stayed positive at the mid-day at 22/12 and 1 flat, closing negative at 13/20 and 2 flats;
  • Tuesday opened positive at 2013 and 2 flats, slipped neutral at the mid-day at 16/13 and 3 flats, closing negative at 16/18 and 1 flat;
  • 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;

 

Key metrics:

  • Sector volume was extremely LOW with 3 of the 13-upside having higher than the 3-month average volume with the 3 of 20-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 13-upside were +0.41% (ALNY) to +5.19% (ADRO) while the 20-downside ranges from -0.26% (AXGN) to -8.01% (NTLA); 

 

Hammered in today’s market:

  • Ultragenyx (RARE), Intellia Therapeutics (NTLA), CRISPR Therapeutics (CRSP), bluebird bio (BLUE), Ionis Pharmaceuticals (IONS) to name 5 of the 20 declining of the 35 covered

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), Sage Therapeutics (SAGE), Global Blood Therapeutics (GBT), uniQure NV (QURE), Brainstorm Cell Therapeutics (BCLI) to name 5 of the 13 inclining of the 35 covered

 

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

  • Wednesday, the IBB closed up +0.59% and XBI closed down -0.23%
  • Tuesday, the IBB closed up +0.10% and XBI closed up +0.68%
  • Monday, the IBB closed up +0.76% and XBI closed up +0.12%

 

Wednesday’s (10 of 13) incliners:

  • ReNeuron (RENE.L +$2.50 after Tuesday’s -$2.50 and Monday’s +$0.50);
  • Sage Therapeutics (SAGE +$1.45 after Tuesday’s-$0.22 and Monday’s -$0.93);
  • Global Blood Therapeutics (GBT +$1.20 after Tuesday’s +$0.31 and Monday’s -$0.55);
  • uniQure NV (QURE +$0.85 after Tuesday’s -$0.43 and Monday’s -$0.94);
  • Brainstorm Cell Therapeutics (BCLI +$0.73 after Tuesday’s +$0.24 and Monday’s +$1.00),
  • Alnylam Pharmaceuticals (ALNY +$0.59 after Tuesday’s +$5.20 and Monday’s +$1.50),
  • Fate Therapeutics (FATE +$0.57 after Tuesday’s -$1.10 and Monday’s +$2.70),
  • Pluristem (PSTI +$0.41 after Tuesday’s +$0.63);
  • Vericel (VCEL +$0.34);
  • BioLife Solutions (BLFS +$0.28 after Tuesday’s +$1.63 and Monday’s +$0.78);

Wednesday’s (10 of 20) decliners:

  • Ultragenyx (RARE -$2.91 after Tuesday’s +$2.60 and Monday’s +$0.65);
  • Intellia Therapeutics (NTLA -$1.73 after Tuesday’s +$0.39);
  • CRISPR Therapeutics (CRSP -$1.35 after Tuesday’s +$1.30 and Monday’s -$0.40);
  • bluebird bio (BLUE -$1.05 after Tuesday’s-$0.90 and Monday’s -$1.14);
  • Ionis Pharmaceuticals (IONS -$1.03 after Tuesday’s -$0.55 and Monday’s +$0.33);
  • Editas Medicine (EDIT -$0.98);
  • Mesoblast (MESO -$0.63 after Tuesday’s -$0.25 and Monday’s +$1.90),
  • Sangamo Therapeutics (SGMO -$0.44);
  • Voyager Therapeutics (VYGR -$0.40);
  • Regenxbio (RGNX -$0.39 after Tuesday’s +$0.55 and Monday’s-$0.49);

Closing flat: MiMedx (OTC Pink sheets: MDXG) and Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: a 360 degrees comparison of % and pricing

  • Wednesday’s percentage (%) of the 13-upside were +0.41% (ALNY) to +5.19% (ADRO) while the 20-downside ranges from -0.26% (AXGN) to -8.01% (NTLA); 
  • Tuesday’s percentage (%) of the 16-upside was +0.32% (CLLS) to +6.64% (PSTI) while the 18-downside ranges from -0.20% (SGMO) to -10.92% (BSTG); 
  • 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); 

 

Sentiment and a few daily indicators:

Sentiment was helped by better-than-expected economic data. Many daily gains were gains in the final hour of trading after House Speaker Pelosi and Treasury Secretary Mnuchin failed to strike a coronavirus aid deal.

Infection cases:

  • Wednesday 7.19 cases
  • Tuesday 7.16 cases
  • Monday 7.12 M cases
  • Friday 6.98 M cases

Wednesday’s death rate totaled 206,036 after Tuesday’s 205,547 after Monday’s 204,881, Friday’s 202,827, Thursday’s 201,920 and last Wednesday’s 200,818 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Wednesday: 3 out of the 13-upside had higher than the 3-month average volume;
  • Tuesday: 0 out of the 16-upside had higher than the 3-month average volume;
  • Monday: 2 out of the 16-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.10 points or -0.38% at 26.37
  • Tuesday was up +0.08 points or +0.31% at 26.27
  • Monday was down -0.19 points or -0.72% at 26.19

Downside volume:

  • Wednesday: 3 out of the 20-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 18-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 16-downside had higher than the 3-month average volume;

 

September, the third month of Q3 … it’s over

Wednesday closed negative with 13 advancers, 20 decliners and 2 flats

Tuesday closed negative with 16 advancers, 18 decliners and 1 flat

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: The short-term volatility pressures won’t abate after this debate. In a sense, it’s creating even more uncertainty along with the coming Q3 earnings reporting season.

 

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.