October 13, 2020 5:12pm

Negative COVID headlines, fading chances of a fiscal stimulus has hindered markets

Pre-open indication results: 9 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 DOWN -157.71 points (-0.55%), the S&P closed DOWN -22.29 points (-0.63 %) while the Nasdaq closed DOWN -122.36 points (-0.10 %)

 

Henry’omics:

Indexes fell on Tuesday as investors wait and wait for stimulus package and corporate earnings get released.

The major averages fell to their lows of the day at around 2:30 p.m. ET after the FDA paused Eli Lilly’s (LLY) late-stage coronavirus trial due to safety concerns. The news follows Johnson & Johnson (JNJ)halting its coronavirus vaccine trial after an “adverse event” was reported. LLY shares were down 2.85% and J&J slid 2.29%.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: I’m tagging the risk candidates as new highs enhance portfolio profiting … https://www.regmedinvestors.com/articles/11586

 

Pre-open indications: 9 HITs < Biostage (BSTG -$0.00), SELL into Strength: Brainstorm Cell Therapeutics (BCLI +$0.15), Voyager therapeutics (VYGR +$0.07) Precigen (PGEN -$0.24); AxoGen (AXGN +$0.23), CRISPR Therapeutics (CRSP +$3.66), Intellia Therapeutics (NTLA +$0.70), Fate Therapeutics (FATE +$0.29); BUY – Mesoblast (MESO +$0.03) – always good to profit and 0 MISS

 

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

  • Tuesday opened negative at 15/18 and 2 flats, stayed negative at the mid-day at 14/17 and 4 flats, closing positive at 20/12 and 3 flats;
  • 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 7 of the 20-upside having higher than the 3-month average volume with the increased volume of 0 of 12-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 20-upside were +0.25% (MESO) to +4.58% (GBT) while the 12-downside of -0.23% (ALNY) to -4.78% (PGEN);

 

Hammered in today’s market:

  • bluebird bio (BLUE), Regenxbio (RGNX), Vericel (VCEL), uniQure NV (QURE), Alnylam Pharmaceuticals (ALNY) to name 5 of the 12 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Global Blood Therapeutics (GBT), Ionis Pharmaceuticals (IONS), Ultragenyx (RARE), Sage Therapeutics (SAGE) to name 5 of the 20 inclining of the 35 covered

 

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

  • Tuesday, the IBB closed up +0.48% and XBI closed up +1.37%
  • 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%

 

Tuesday’s (10 of 20) incliners:

  • CRISPR Therapeutics (CRSP +$3.66 after Monday’s +$1.14);
  • Global Blood Therapeutics (GBT +$2.68 after Monday’s -$3.83);
  • Sage Therapeutics (SAGE+$2.28 after Monday’s -$2.76);
  • Ultragenyx (RARE +$1.90 after Monday’s +$1.05);
  • Ionis Pharmaceuticals (IONS +$1.49 after Monday’s +$0.54);
  • Intellia Therapeutics (NTLA +$0.70 after Monday’s -$2.40);
  • Cellectis SA (CLLS +$0.64);
  • Editas Medicine (EDIT +$0.55 after Monday’s -$0.87);
  • Adverum Biotechnologies (ADVM +$0.46);
  • Fate Therapeutics (FATE +$0.29 after Monday’s +$1.02),

Tuesday’s (10 of 12) decliner:

  • bluebird bio (BLUE -$1.64 and Monday’s +$0.79);
  • Regenxbio (RGNX -$0.98 after Monday’s +$0.40);
  • Vericel (VCEL -$0.77 after Monday’s -$0.12);
  • uniQure NV (QURE -$0.51);
  • Alnylam Pharmaceuticals (ALNY -$0.34)
  • Pluristem (PSTI -$0.31);
  • BioLife Solutions (BLFS -$0.26 after Monday’s -$0.89);
  • Precigen (PGEN -$0.24 after Monday’s -$0.67);
  • Solid Bioscience (SLDB -$0.12 after Monday’s -$0.10);
  • Bellicum Pharmaceuticals (BLCM -$0.07 after Monday’s -$0.22);

Closing flat –3 – Biostage (BSTG), ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)

 

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

  • Tuesday’s percentage (%) of the 20-upside were +0.25% (MESO) to +4.58% (GBT) while the 12-downside of -0.23% (ALNY) to -4.78% (PGEN);
  • 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:

A pair of coronavirus drug trials have been paused in the U.S. over safety concerns. Eli Lilly’s antibody treatment trial has been put on hold, the company confirmed to CNBC, and Johnson & Johnson announced Monday it has paused late-stage trials of its coronavirus vaccine candidate. While brief suspensions are routine in the world of drug trials, the latest cast added uncertainty on drug development timelines. <CNBC>

Infection cases <Million>:

  • Tuesday 7.8 cases
  • Monday 7.77 M cases
  • Friday 7.6 M cases

Tuesday’s death rate totaled 215,101 after Monday’s 214,882, Friday’s 212,789, Thursday’s 211,844, Wednesday’s 210,918 and last Tuesday’s 210,195 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Tuesday: 3 out of the 20-upside had higher than the 3-month average 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 +1 points or +3.99% at 26.07
  • 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:

  • Tuesday: 0 out of the 12-downside had higher than the 3-month average 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 …

Tuesday closed positive with 20 advancers, 12 decliners and 3 flats 

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: The coronavirus pandemic has left its imprint on just about everything …

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.