November 5, 2020 5:22pm

Always good to take earnings off-the-table, not all but, lightens the risk forward. In these volatile markets, I don’t worry about being under-invested but, prepared for the algorithmic rules!

Pre-open indication results: 13 HITs

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I track the numbers, so there’s no question re my opinion; so, you can do what others can't.

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The Dow closed UP +542.52 points (+1.95%), the S&P closed UP +67.01 points (+1.95%) while the Nasdaq closed UP +300.15 points (+2.59%)

 

Henry’omics:

Stocks jumped on Thursday on…  hopes the winner of the U.S. presidential and congressional elections would … soon be determined.

But, not quite yet …

Those gains put the major averages on pace for their biggest weekly gains since April. The Dow was up 7.1% week to date. The S&P 500 was up +7.4% and Nasdaq stayed up +9%.

 

From this a.m.’s Data Docket, “The Federal Reserve on Thursday said the U.S. economy and employment improved since September, but held interest rates at near-zero as the economy continues to face “considerable risks” ahead.”

 

Pre-open indication: 13 HITs < Biostage (BSTG -$0.10), Alnylam Pharmaceuticals (ALNY -$1.63), BioLife Solutions (BLFS -$0.60), bluebird bio (BLUE -$9.72), CRISPR Therapeutics (CRSP +$7.83), Editas Medicine (EDIT +$1.10), Fate Therapeutics (FATE +$0.10), Global Blood Therapeutics (GBT -$1.56), Intellia Therapeutics (NTLA +$1.31), Regenxbio (RGNX -$2.05), uniQure NV (QURE +$0.03), Ultragenyx (RARE +$0.88), Sage Therapeutics (SAGE -$0.44)> 0 MISS

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: calling an audible - SELL, realize gains and take some profit off the table; political and legal battles over the presidency are far from over; even when results are solidified, legal recriminations will continue” … https://www.regmedinvestors.com/articles/11621

 

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

  • Thursday opened positive at 22/11 and 2 flats, stayed positive at the mid-day at 22/10 and 3 flats, closing positive at 20/11 and 4 flats;
  • Wednesday opened positive at 30/3 and 2 flats, stayed positive at the mid-day at 26/4 and 5 flats, closing positive at 28/4 and 3 flats;
  • Tuesday opened positive at 27/5 and 3 flats, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 30/4 and 1 flat;
  • Monday opened positive at 23/8 and 4 flats, strayed negative at the mid-day at 9/23 and 3 flats, closing positive at 17/15 and 3 flats;

 

Key metrics:

  • Sector volume was the usual LOW with 11 of the 20-upside having higher than the 3-month average volume with the increased volume of 8 of 11-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 20-upside were +0.20% (FATE) to +9.88% (CLLS) while the 11-downside ranges from -0.26% (QURE) to -16.60% (BLUE);

 

Hammered in today’s market:

  • bluebird bio (BLUE), Regenxbio (RGNX), Global Blood Therapeutics (GBT), Alnylam Pharmaceuticals (ALNY), Adverum Biotechnologies (ADVM) to name 5 of the 11 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPR Therapeutics (CRSP), Cellectis SA (CLLS), Intellia Therapeutics (NTLA), Ionis Pharmaceuticals (IONS), Editas Medicine (EDIT) to name 5 of the 20 inclining of the 35 covered

 

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

  • Thursday, the IBB closed down -0.05% and XBI closed down -0.05%
  • Wednesday, the IBB closed up +6.04% and XBI closed up +6.16%
  • Tuesday, the IBB closed up +1.77% and XBI closed UP +2.71%
  • Monday, the IBB closed down -0.18% and XBI closed down -0.01%

 

Thursday’s (10 of 20) incliners:

  • CRISPR Therapeutics (CRSP +$7.83 after Wednesday’s +$8.69);
  • Cellectis SA (CLLS +$1.63);
  • Intellia therapeutics (NTLA +$1.31);
  • Ionis Pharmaceuticals (IONS +$1.11);
  • Editas Medicine (EDIT +$1.10 after Wednesday’s +$2.14 and Tuesday’s -$2.99);
  • Homology Medicine (FIXX +$0.97);
  • Ultragenyx (RARE +$0.88 after Wednesday’s +$11.53, Tuesday’s +$6.47 and Monday’s -$4.97);
  • Vericel (VCEL +$0.53);
  • Mesoblast (MESO +$0.47);
  • Brainstorm Cell Therapeutics (BCLI +$0.45 after Wednesday’s -$0.20);

Thursday’s (11 of 11) decliner:

  • bluebird bio (BLUE -$9.72 after Wednesday’s +$4.00, Tuesday’s +$1,46 and Monday’s +$1.38);
  • Regenxbio (RGNX -$2.05 after Wednesday’s +$2.37);
  • Alnylam Pharmaceuticals (ALNY -$1.63 after Wednesday’s +$10.44, Tuesday’s +$4.14 and Monday’s +$1.94);
  • Global Blood Therapeutics (GBT -$1.56 after Wednesday’s +$7.89, Tuesday’s +$1.52 and Monday’s -$0.41);
  • Adverum Biotechnologies (ADVM -$0.86);
  • BioLife Solutions (BLFS -$0.60);
  • MiMedx (MDXG -$0.45);
  • Sage Therapeutics (SAGE -$0.44 after Wednesday’s +$4.32, Tuesday’s +$2.55 and Monday’s -$1.70);
  • Biostage (BSTG -$0.10 after Wednesday’s flat, Tuesday’s $+0.09 and Monday’s flat);
  • Bellicum Pharmaceuticals (BLCM -$0.08 after Wednesday’s -$0.21, Tuesday’s -$0.13 and Monday’s -$0.43);

Closing flat – 3 – Athersys (ATHX), ReNeuron (RENE.L), Solid Biosciences (SLDB) and 1 –Stemline Therapeutics (STML – acquired)

 

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

  • Thursday’s percentage (%) of the 20-upside were +0.20% (FATE) to +9.88% (CLLS) while the 11-downside ranges from -0.26% (QURE) to -16.60% (BLUE);
  • Wednesday’s percentage (%) of the 28-upside were +0.63% (CLBS) to +14.61% (GBT) while the 4-downside ranges from -1.86% (BCLI) to -6.67% (BLCM);
  • Tuesday’s percentage (%) of the 30-upside were +0.13% (CLLS) to +12.23% (PGEN) while the 4-downside of -1.10% (RENE.L) to -9.55% (EDIT);
  • Monday’s percentage (%) of the 17-upside were +0.19% (VYGR) to +14.66% (MDXG) while the 15-downside of -0.11% (PSTI) to -11.59% (BLCM);

 

Sentiment and a few daily indicators:

Sentiment on Thursday also got a boost from the Fed keeping interest rates unchanged near zero, however …

The U.S. recorded 102,831 new cases of Covid-19 on Wednesday, according to a Johns Hopkins University tally. It’s the first time nationwide new cases have topped 100,000 on a single day, and it pushes the seven-day average of daily new infections to a record 89,858. <CNBC>

Infection cases <Million>:

  • Thursday 9.49 M cases
  • Wednesday 9.39 M cases
  • Tuesday 9.29 M cases
  • Monday 9.2 M cases

Thursday’s death rate totaled 233,767 after Wednesday’s 232,693, Tuesday’s 231,566, Monday’s 231,011, Friday’s 229,141 and last Thursday’s 227,706 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Thursday: 11 out of the 20-upside had higher than the 3-month average volume;
  • Wednesday: 15 out of the 28-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 30-upside had higher than the 3-month average volume;
  • Monday: 7 out of the 17-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -1.99 points or -6.73% at 27.58
  • Wednesday was down -5.98 points or -16.82% at 29.57
  • Tuesday was down -1.58 points or -4.26% at 35.55
  • Monday was down -0.89 points or -2.34% at 37.13

Downside volume:

  • Thursday: 8 out of the 11-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Monday: 5 out of the 15-downside had higher than the 3-month average volume;

 

November, the 2nd month of Q4 …

Thursday closed positive with 20 advancers, 11 decliners and 4 flats 

Wednesday closed positive with 28 advancers, 4 decliners and 3 flats 

Tuesday closed positive with 30 advancers, 4 decliners and 1 flat 

Monday (11/2) closed positive with 17 advancers, 15 decliners and 3 flats 

 

The Bottom Line: From this morning’s post, “SELL, realize gains and take some profit off the table; political and legal battles over the presidency are far from over; even when results are solidified, legal recriminations will continue.”

As I had stated, “calling an audible”, I just don’t TRUST multiple session highs …

Now we have big swing in sector earnings’ LPS (loss-per-share) releases with the next month likely to remain volatile and uncertain.

Reiterating,” short-term risk and sentiment continue to weigh on investors, there are certainly fleeting patterns.’

 

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.