October 19, 2020 5:40pm

The sector is coming off a week of choppy trading action starting with a stimulus deadline without a “deal”

Pre-open indication results: 3 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 DOWN -410.89 points (-1.44%), the S&P closed DOWN -56.89 points (-1.63%) while the Nasdaq closed DOWN -192.67 points (-1.65)

 

Henry’omics:

Indexes fell sharply on Monday ahead of a key deadline set by House Speaker Pelosi for new coronavirus stimulus before the election while Covid-19 cases rise.

  • Johns Hopkins University data showed Covid-19 cases were growing by 5% or more in 38 states as of Friday. Nationwide, the daily case average has risen by more than 16% on a week-over-week basis to nearly 55,000;
  • Global coronavirus cases hit 40 million on Monday, which also put a damper on market sentiment.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: define strength and how long can it be sustainable as volatility is heightened by sentiment as COVID-19 cases rise and hopes for a pre-election stimulus deal” … https://www.regmedinvestors.com/articles/11594

 

Pre-open indications: 3 HITs < Biostage (BSTG -$0.00); BUY:  Ionis Pharmaceuticals (IONS +$0.07), SELL: Fate Therapeutics (FATE -$1.12 and 1 MISS < bluebird bio (BLUE -$1.55)>

 

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

  • Monday opened positive at 20/13 and 3 flats, strayed negative at the mid-day at 12/22 and 1 flat, closing negative at 8/25 and 2 flats;
  • Friday opened negative at 15/17 and 3 flats, strayed positive at the mid-day at 23/8 and 4 flats, closing positive at 20/12 and 3 flats;

 

Key metrics:

  • Sector volume was the usual LOW with 2 of the 6-upside having higher than the 3-month average volume with the increased volume of 6 of 25-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 8-upside were +0.15% (IONS) to +4.98% (QURE) while the 25-downside of -0.52% (AXGN) to -10.75% (BCLI);

 

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), Global Blood Therapeutics (GBT), bluebird bio (BLUE), Brainstorm Cell Therapeutics (BCLI) to name 5 of the 25 declining of the 35 covered

Jumping with share pricing momentum:

  • uniQure NV (QURE), ReNeuron (RENE.L), Sage Therapeutics (SAGE), Pluristem (PSTI), Mesoblast (MESO), Ionis Pharmaceuticals (IONS), MiMedx (OTC Pink sheets: MDXG), Caladrius Biosciences (CLBS) to name 8 of the 8 inclining of the 35 covered

 

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

  • Monday, the IBB closed down -1.63% and XBI closed down -1.93%
  • Friday, the IBB closed up +0.36% and XBI closed up +0.37%

 

Monday’s (8 of 8) incliners:

  • uniQure NV (QURE +$1.78);
  • ReNeuron (RENE.L +$1.50);
  • Sage Therapeutics (SAGE +$0.63 after Friday’s +$2.70);
  • Pluristem (PSTI +$0.46);
  • Mesoblast (MESO +$0.35 after Friday’s -$0.37);
  • Ionis Pharmaceuticals (IONS +$0.07 after Friday’s -$1.16);
  • MiMedx (OTC Pink sheets: MDXG +$0.03 after Friday’s -$0.10);
  • Caladrius Biosciences (CLBS +$0.01 after Friday’s -$0.05);

Monday’s (10 of 25) decliner:

  • Alnylam Pharmaceuticals (ALNY -$4.76 after Friday’s +$1.46);
  • CRISPR Therapeutics (CRSP -$2.11 after Friday’s +$9.94);
  • Global Blood Therapeutics (GBT -$1.71 after Friday’s +$1.11);
  • bluebird bio (BLUE -$1.55 after Friday’s +$0.82);
  • Brainstorm Cell Therapeutics (BCLI -$1.49 after Friday’s -$1.43, earnings release and new $45 M ATM <debt package>);
  • Cellectis SA (CLLS -$1.12);
  • Fate Therapeutics (FATE -$1.12 after Friday’s +$0.54);
  • Ultragenyx (RARE -$0.82 after Friday’s -$1.80);
  • Voyager Therapeutics (VYGR -$0.78);

Closing flat –2 –Biostage (BSTG) and Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 8-upside were +0.15% (IONS) to +4.98% (QURE) while the 25-downside of -0.52% (AXGN) to -10.75% (BCLI);
  • Friday’s percentage (%) of the 20-upside were +0.24% (VYGR) to +9.95% (CRSP) while the 12-downside ranges from -0.18% (SGMO) to -9.35% (BCLI);

 

Sentiment and a few daily indicators:

A continued economic recovery in China also boosted sentiment on Monday. The world’s second largest economy reported third-quarter GDP growth of 4.9%, which was on the low end of expectations, but indicates an improving outlook.  <CNBC>

However, global coronavirus cases hit 40 million on Monday, hinders the bullish sentiment.

Infection cases <Million>:

  • Monday 8.15 M cases
  • Friday 8 M cases

Monday’s death rate totaled 219,680 after Friday’s 218,097, Thursday’s 216,904, Wednesday’s 215,971, Tuesday’s 215,101 and last Monday’s 214,882

<Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 2 out of the 8-upside had higher than the 3-month average volume;
  • Friday: 7 out of the 20-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +1.77 points or +6.46% at 29.18
  • Friday was up +0.44 points or +1.63% at 27.41

Downside volume:

  • Monday: 6 out of the 25-downside had higher than the 3-month average volume;
  • Friday: 3 out of the 12-downside had higher than the 3-month average volume;

 

October, the first month <October> of Q4 …

Monday (10/19) closed negative with 8 advancers, 25 decliners and 2 flats 

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

Thursday closed positive with 17 advancers, 15 decliners and 3 flats

Wednesday closed negative with 11 advancers, 22 decliners and 2 flats 

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: As I stated this a.m. - "Theme for the session and maybe the week: which way it can or will go, I’m out of words. Hope and optimism are NOT in my vocabulary this day"

… and again I’m RIGHT.

 

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.