October 5, 2020 5:46pm

Although, there is also “hope” for a new stimulus “deal”

Pre-open indication results: 4 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.

Subscription is coming, my gift to you, I've kept RMi subscription FREE during these COVID-19 and volatile times!

 

The Dow closed UP +465.83 points (+1.68%), the S&P closed UP +60.16 points (+1.80%) while the Nasdaq closed UP +257.47 points (+2.32%)

 

Henry’omics:

Indexes climbed on Monday after President Trump was being discharged (6:30 p.m.) from the hospital, easing concerns about more political uncertainty ahead of Election Day.

From my data docket: After data last week showed an unexpected slowdown in the domestic manufacturing sector in September, figures on Monday showed activity in the broader services industry pulled above levels that prevailed before the COVID-19 pandemic.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: a bumpy road after an overreaction which leaves many oversold below the zone with lowered expectation” … https://www.regmedinvestors.com/articles/11574

 

Pre-open indications: 4 HITs < SELL into Strength - Fate Therapeutics (FATE +3.80), Mesoblast (MESO +$0.77); Solid Biosciences (SLDB +$0.57); BUY - bluebird bio (BLUE +$4.46), and 1 MISS < Biostage (BSTG +$0.01), >

 

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

  • Monday opened positive at 31/3 and 1 flat, stayed positive at the mid-day at 33/1 and 1 flat, closing positive at 33/1 and 1 flat;
  • Friday opened negative at 1330 and 2 flats, stayed negative at the mid-day at 8/26 and 1 flat, closing negative at 8/26 and 1 flat;

 

Key metrics:

  • Sector volume was the usual LOW with 12 of the 33-upside having higher than the 3-month average volume with the increased volume of 1 of 1-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 33-upside were +0.52% (RENE.L) to +13.64% (SLDB) while the 1-downside of -0.30% (MDXG);

 

Hammered in today’s market:

  • MiMedx (OTC Pink sheets: MDXG) to name 1 of the 1 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), Global Blood Therapeutics (GBT), bluebird bio (BLUE) to name 5 of the 33 inclining of the 35 covered

 

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

  • Monday, the IBB closed up +4.26% and XBI closed up +4.94%
  • Friday, the IBB closed down -2.05% and XBI closed down -2.19%

 

Monday’s (10 of 10) incliners:

  • CRISPR Therapeutics (CRSP +$7.08 after Friday’s -$3.67);
  • Alnylam Pharmaceuticals (ALNY +$6.32 after Friday’s -$8.06),
  • Ultragenyx (RARE +$4.85);
  • Global Blood Therapeutics (GBT +$4.79);
  • bluebird bio (BLUE +$4.33 after Friday’s -$2.20);
  • Fate Therapeutics (FATE +$3.80 after Friday’s -$2.52),
  • uniQure NV (QURE +$2.53 after Friday’s -$1.89);
  • Editas Medicine (EDIT +$2.07);
  • Intellia Therapeutics (NTLA +$1.94);

Monday’s (1 of 1) decliner:

  • MiMedx (OTC Pink sheets: MDXG -$0.03 after Friday’s -$+$0.17);

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

 

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

  • Monday’s percentage (%) of the 33-upside were +0.52% (RENE.L) to +13.64% (SLDB) while the 1-downside of -0.30% (MDXG);
  • Friday’s percentage (%) of the 8-upside were +0.09% (AXGN) to +20.91% (SLDB) while the 20-downside ranges from -0.61% (VCEL) to -35.18% (MESO);

 

Sentiment and a few daily indicators:

There are renewed hopes for a stimulus agreement by the election and amid news that President Trump will be discharged from the hospital within hours. House Speaker Pelosi and Treasury Secretary Mnuchin are pushing to strike a deal on an elusive fifth coronavirus stimulus package.

Infection cases <Million>:

  • Monday 7.44 M cases
  • Friday 7.28 M cases

Monday’s death rate totaled 210.013 after Friday’s 207,818, Thursday’s 206,036, Wednesday’s 206,036, Tuesday’s 205,547 and last Monday’s 204,881 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 12 out of the 33-upside had higher than the 3-month average volume;
  • Friday: 1 out of the 8-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.33 points or +1.19% at 27.96
  • Friday was up +0.93 points or +3.48% at 27.63

Downside volume:

  • Monday: 1 out of the 1-downside had higher than the 3-month average volume;
  • Friday: 10 out of the 26-downside had higher than the 3-month average volume;

 

October, the first month of Q4 …

Monday (10/5) closed positive with 33 advancers, 1 decliner and 1 flat 

Friday closed negative with 8 advancers, 26 decliners and 1 flat 

Thursday (10/1) closed negative with 21 advancers, 12 decliners and 2 flats

 

The Bottom Line: Markets seem (to) have lowered the chance of prolonged uncertainty by its dramatic rise - today. As I had stated in the a.m. newsletter, “after an overreaction … <markets> left many oversold below the zone.”

History shows that the stock market’s rebound after faltering late last week following President Donald Trump’s COVID-19 diagnosis isn’t out of the ordinary. <MarketWatch>

So, RIGHT 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.