October 12, 2020 5:25pm

We still don’t have a stimulus program; the economic recovery is faltering and businesses are failing with increased dangling risks

Pre-open indication results: 6 HITs 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 +250.62 points (+0.88), the S&P closed UP +57.09 points (+1.64%) while the Nasdaq closed UP +296.32 points (+2.56%)

 

Henry’omics:

U.S. indexes rose sharply on Monday …

As the iShares Russell 1000 Growth ETF (IWF) rallied 2.3% and outperformed its value counterpart, the iShares Russell 1000 Value ETF (IWD). The latter rose just 0.8%.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: to minimize risk “sell into strength” … https://www.regmedinvestors.com/articles/11584

 

Pre-open indications: 6 HITs < Biostage (BSTG -$0.01), SELL into Strength: Precigen (PGEN -$0.67); Alnylam Pharmaceuticals (ALNY -$0.00), CRISPR Therapeutics (CRSP +$1.14), Intellia Therapeutics (NTLA -$2.40), Editas Therapeutics (EDIT -$0.87) – always good to profit and 0 MISS

 

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

  • Monday opened negative at 10/22 and 3 flats, stayed negative at the mid-day at 14/18 and 3 flats, closing neutral at 16/16 and 3 flats;
  • Friday opened positive at 19/13 and 3 flats, stayed positive at the mid-day at 25/8 and 2 flats, closing positive at 21/9 and 5 flats;

 

Key metrics:

  • Sector volume was the usual LOW with 3 of the 16-upside having higher than the 3-month average volume with the increased volume of 3 of 16-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 16-upside were +0.44% (QURE) to +5.92% (AXGN) while the 16-downside of -0.52% (ATHX) to -11.78% (PGEN);

 

Hammered in today’s market:

  • Global Blood Therapeutics (GBT), Sage Therapeutics (SAGE), Intellia Therapeutics (NTLA), BioLife Solutions (BLFS), Precigen (PGEN) to name 5 of the 16 declining of the 35 covered

Jumping with share pricing momentum:

  • Ultragenyx (RARE), CRISPR Therapeutics (CRSP), bluebird bio (BLUE), AxoGen (AXGN), Ionis Pharmaceuticals (IONS) 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 +0.79% and XBI closed up +0.25%
  • Friday, the IBB closed up +0.81% and XBI closed up +0.92%

 

Monday’s (10 of 16) incliners:

  • CRISPR Therapeutics (CRSP +$1.14 after Monday’s +$2.87);
  • Ultragenyx (RARE +$1.05);
  • bluebird bio (BLUE +$0.79 after Friday’s -$0.13);
  • AxoGen (AXGN +$0.77 after Friday’s +$0.83);
  • Ionis Pharmaceuticals (IONS +$0.54 after Friday’s -$0.92);
  • Fate Therapeutics (FATE +$1.02 after Friday’s +$3.03),
  • Voyager therapeutics (VYGR +$0.44 after Friday’s -$0.32);
  • Regenxbio (RGNX +$0.40);
  • Homology Medicine (FIXX +$0.35 after Friday’s -$0.49);
  • Sangamo Therapeutics (SGMO +$0.33 after Friday’s +$0.94);

Monday’s (10 of 16) decliner:

  • Global Blood Therapeutics (GBT -$3.83 after Friday’s +$0.81);
  • Sage Therapeutics (SAGE -$2.76 after Friday’s -$3.12);
  • Intellia Therapeutics (NTLA -$2.40 after Friday’s +$3.37);
  • BioLife Solutions (BLFS -$0.89);
  • Editas Medicine (EDIT -$0.87 after Friday’s +$2.38);
  • Brainstorm Cell Therapeutics (BCLI -$0.75 after Friday’s -$0.18);
  • Precigen (PGEN -$0.67 after Friday’s +$1.28);
  • Bellicum Pharmaceuticals (BLCM -$0.22);
  • Vericel (VCEL -$0.12);
  • Solid Bioscience (SLDB -$0.10 after Friday’s -$0.01);

Closing flat –3 – Alnylam Pharmaceuticals (ALNY), ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 16-upside were +0.44% (QURE) to +5.92% (AXGN) while the 16-downside of -0.52% (ATHX) to -11.78% (PGEN);
  • Friday’s percentage (%) of the 21-upside were +0.02% (RARE) to +29.02% (PGEN) while the 9-downside ranges from -0.23% (BLUE) to -4.62% (SAGE);

 

Sentiment and a few daily indicators:

The market is “exhibiting a very strong pro-growth/momentum bias,” said Adam Crisafulli, founder of Vital Knowledge. “The pivot away from cyclicals (which had been leading for the last two weeks) could reflect reduced near-term odds for fiscal stimulus and spiking COVID cases, but the core macro narrative in the US is still intensely focused on the possibility for a ‘Blue Wave.’” <CNBC>

I believe, we are “Waiting for Godot” … where some are waiting for something to happen, but it probably never will.

Infection cases <Million>:

  • Monday 7.77 M cases
  • Friday 7.6 M cases

Monday’s death rate totaled 214,882 after Friday’s 212,789, Thursday’s 211,844, Wednesday’s 210,918, Tuesday’s 210,195 and last Monday’s 210.013 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 3 out of the 16-upside had higher than the 3-month average volume;
  • Friday: 7 out of the 21-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.07 points or +0.28% at 25.07
  • Friday was down -1.36 points or -5.16% at 25.00

Downside volume:

  • Monday: 3 out of the 16-downside had higher than the 3-month average volume;
  • Friday: 2 out of the 9-downside had higher than the 3-month average volume;

 

October, the first month <October> of Q4 …

Monday (10/12) closed neutral with 16 advancers, 16 decliners and 3 flats 

Friday closed positive with 21 advancers, 9 decliners and 5 flats 

Thursday closed positive with 18 advancers, 14 decliners and 3 flats

Wednesday closed positive with 26 advancers, 9 decliners and 2 flats 

Tuesday closed negative with 11 advancers, 23 decliners and 1 flat 

Monday (10/5) closed positive with 33 advancers, 1 declined 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: Sector investors should be bracing for Q3 earnings season.

What backs-up the market’s strong performance? Last week. The Dow posted its biggest one-week gain since August, while the S&P 500 and Nasdaq had their best week since July.

Reiterating, I am STILL wary of what and how October will play into November and December for “our’ universe!

The winning constant continues of pre-open indications being on-target

 

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.