October 22, 2020 5:13pm

Let’s be mindful of forced narrative risks and algorithmic profit “rules”

News: FDA approves Gilead Science’s (GILD) remdesivir as coronavirus treatment

Pre-open indication results: 4 HITs and 3 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 +152.84 points (+0.54%), the S&P closed UP +17.93 points (+0.52%) while the Nasdaq closed UP +21.31 points (+0.09%)

 

Henry’omics:

Indexes turned higher on Thursday as traders weighed fiscal stimulus negotiations.

  • President Trump tweeted on Wednesday that he doesn’t see “any way House Speaker Pelosi and Senator Schumer will be willing to do what is right for American workers on the stimulus;
  • Both sides have yet to reach an agreement on the key issues which include state and local funding.

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: volatility “ain’t” leaving … https://www.regmedinvestors.com/articles/11600

 

Pre-open indications: 4 HITs < Mesoblast (MESO +$0.01), Precigen (PGEN +$0.01), Ionis Pharmaceuticals (IONS +$0.83); SELL into Strength: Fate Therapeutics (FATE +$3.25)> and 3 MISS < Biostage (BSTG +$0.07); CRISPR Therapeutics (CRSP -$2.06), Pluristem (PSTI -$0.05) >  

 

From this a.m.’s Data Docket: The Labor Department said weekly jobless claims fell to 787,000 for the week ending Oct. 17. That marks the first time since March that claims come in below 800,000. Economists expected first-time applicants for state unemployment insurance to have totaled 875,000.

 

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

  • Thursday opened positive at 31/3 and 1 flat, stayed positive at the mid-day at 22/10 and 3 flats, closing positive at 26/7 and 2 flats;
  • Wednesday opened negative at 9/24 and 2 flats, strayed negative at the mid-day at 3/27 and 5 flats, closing negative at 5/27 and 3 flats;
  • Tuesday opened negative at 11/22 and 2 flats, stayed negative at the mid-day at 12/21 and 2 flats, closing negative at 14/19 and 2 flats;
  • 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;

 

Key metrics:

  • Sector volume was the usual LOW with 5 of the 26-upside having higher than the 3-month average volume with the increased volume of 2 of 7-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 26-upside were +0.09% (MESO) to +7.31% (FATE) while the 7-downside ranges from -0.47% (MDXG) to -2.56% (CRSP);

 

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY), Chinook Therapeutics (KDNY), Bellicum Pharmaceuticals (BLCM), Pluristem (PSTI), Solid BioSciences (SLDB), MiMedx (OTC Pink sheets: MDXG) to name 7 of the 7 declining of the 35 covered

Jumping with share pricing momentum:

  • Fate Therapeutics (FATE), Ultragenyx (RARE), Sage Therapeutics (SAGE), Editas Medicine (EDIT), uniQure NV (QURE) to name 5 of the 26 inclining of the 35 covered

 

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

  • Thursday, the IBB closed up +1.46% and XBI closed up +2.71%
  • Wednesday, the IBB closed down -1.71% and XBI closed down -2.36%
  • Tuesday, the IBB closed down -0.65% and XBI closed down -1.35%
  • Monday, the IBB closed down -1.63% and XBI closed down -1.93%

 

Thursday’s (10 of 26) incliners:

  • Sage Therapeutics (SAGE +$3.57 after Wednesday’s -$2.82, Tuesday’s +$0.35 after Monday’s +$0.63);
  • Fate Therapeutics (FATE +$3.25 after Wednesday’s -$3.73, Tuesday’s +$0.67 and Monday’s -$1.12);
  • Ultragenyx (RARE +$2.77);
  • Editas Medicine (EDIT +$1.99 after Wednesday’s -$2.91);
  • uniQure NV (QURE +$1.76 after Wednesday’s +$0.43, Tuesday’s +$1.53 and Monday’s +$1.78);
  • Regenxbio (RGNX +$1.40 after Wednesday’s +$0.07 and Tuesday’s -$0.41);
  • Intellia Therapeutics (NTLA +$1.32);
  • bluebird bio (BLUE +$1.17);
  • Global Blood Therapeutics (GBT +$0.89 after Wednesday’s -$3.03, Tuesday’s -$2.55 and Monday’s -$1.71);
  • Cellectis SA (CLLS +$0.77);

Thursday’s (7 of 7) decliner:

  • Alnylam Pharmaceuticals (ALNY -$2.18 after Wednesday’s -$4.97, Tuesday’s +$0.81 and Monday’s -$4.76);
  • CRISPR Therapeutics (CRSP -$2.06 after Wednesday’s -$14.48, Tuesday’s -$1.02 and Monday’s -$2.11);
  • Chinook Therapeutics (KDNY -$0.21 after Wednesday’s -$1.08, Tuesday’s +$0.57);
  • Solid Biosciences (SLDB -$0.09);
  • Pluristem (PSTI -$0.05);
  • Bellicum Pharmaceuticals (BLCM -$0.04 after Wednesday’s +$0.06 and Tuesday’s -$0.40);
  • MiMedx (OTC Pink sheets: MDXG -$0.03);

Closing flat - 2 – ReNeuron (RENE.L) and Stemline Therapeutics (STML – acquired)

 

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

  • Thursday’s percentage (%) of the 26-upside were +0.09% (MESO) to +7.31% (FATE) while the 7-downside ranges from -0.47% (MDXG) to -2.56% (CRSP);
  • Wednesday’s percentage (%) of the 5-upside were +0.09% (ADVM) to +1.10% (QURE) while the 27-downside ranges from -0.85% (SLDB) to -13.57% (CRSP);
  • Tuesday’s percentage (%) of the 14-upside were +0.42% (IONS) to +5.51% (MESO) while the 19-downside of -0.04% (VYGR) to -17.95% (BCLI);
  • 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);

 

Sentiment and a few daily indicators:

The prospect of another stimulus package before Election Day is uncertain, even as the White House and Democratic leaders kept talking Wednesday. What is certain for now, however, is that many Americans who are struggling financially will soon see their temporary financial safety net end unless lawmakers intervene. <MarketWatch>

Infection cases <Million>:

  • Thursday 8.35 M cases
  • Wednesday 8.27 M cases
  • Tuesday’s 8.2 M cases
  • Monday 8.15 M cases

Thursday’s death rate totaled 222,416 after Wednesday’s 221,122, Tuesday’s 220,338, Monday’s 219,680, Friday’s 218,097 and last Thursday’s 216,904 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Thursday: 5 out of the 26-upside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 5-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 14-upside had higher than the 3-month average volume;
  • Monday: 2 out of the 8-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.57 points or -1.99% at 28.08
  • Wednesday was down -0.70 points or -2.39% at 28.65
  • Tuesday was up +0.15 points or +0.45% at 29.31
  • Monday was up +1.77 points or +6.46% at 29.18

Downside volume:

  • Thursday: 3 out of the 7-downside had higher than the 3-month average volume;
  • Wednesday: 10 out of the 27-downside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 19-downside had higher than the 3-month average volume;
  • Monday: 6 out of the 25-downside had higher than the 3-month average volume;

 

October, the first month <October> of Q4 …

Thursday closed positive with 26 advancers, 7 decliners and 2 flats

Wednesday closed negative with 5 advancers, 27 decliners and 3 flats 

Tuesday closed negative with 14 advancers, 19 decliners and 2 flats

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: The prospect of another stimulus package before Election Day is uncertain, even as the White House and Democratic leaders keep talking.

As I stated this a.m. – I am STILL of the opinion that dark clouds are forming over the market!

Reiterating, I also continue to say: maintain a presence in the sector, SELL the highs and be prepared for a tough Q3 reporting season re LPS (loss-per-share).

 

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.