November 9, 2020 6:26pm

Go for the ride until an indication of rotation or sector starts to run out of altitude

Pre-open indication results: 7 HITs and 3 MISS

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 +834.57 points (+2.95%), the S&P closed UP +41.06 points (+1.17%) while the Nasdaq closed DOWN -181.45 points (-1.53%)

 

Henry’omics:

The Dow and S&P 500 jumped on Monday as investors cheered trial data from drug makers Pfizer and BioNTech indicating their Covid-19 vaccine is more than 90% effective.

  • The 90% effective rate from Pfizer (PFE)and Germany’s BioNTech two (2) dose vaccine was better than what the market was expecting. Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, has said that a vaccine that was 50% to 60% effective would be acceptable. <CNBC>

 

Pre-open indication: 7 HITs <Biostage (BSTG -$0.25 with only 2,235 shares traded), BioLife Solutions (BLFS -$1.73), Fate Therapeutics (FATE +$2.41),Mesoblast (MESO -$1.19), Homology Medicine (FIXX +$0.37), Global Blood Therapeutics (GBT +$0.14), Sangamo Therapeutics (SGMO +$0.39)> 3 MISS <bluebird bio (BLUE +$0.57), CRISPR Therapeutics (CRSP -$3.01), Editas Medicine (EDIT -$0.08), >

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: futures are popping as Pfizer (PFE) says Covid-19 vaccine is 90% effective … https://www.regmedinvestors.com/articles/11625

 

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

  • Monday opened positive at 25/7 and 3 flats, stayed positive at the mid-day at 24/9 and 2 flats, closing positive at 21/12 and 2 flats;
  • Friday opened negative at 10/23 and 2 flats, stayed negative at the mid-day at 7/27 and 1 flat, closing positive at 5/28 and 2 flats;

 

Key metrics:

  • Sector volume was the usual LOW with 15 of the 21-upside having higher than the 3-month average volume with the increased volume of 6 of 12-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 21-upside were +0.35% (BCLI) to +17.68% (RENE.L) while the 12- downside of -0.26% (EDIT) to -15.62% (BSTG);

 

Hammered in today’s market:

  • Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), BioLife Solutions (BLFS), Mesoblast (MESO), Pluristem (PSTI) to name 5 of the 12 declining of the 35 covered

Jumping with share pricing momentum:  

  • ReNeuron (RENE.L), Regenxbio (RGNX), Fate Therapeutics (FATE), Ultragenyx (RARE), Vericel (VCEL) to name 5 of the 21 inclining of the 35 covered

 

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

  • Monday, the IBB closed down -0.08% and XBI closed up +0.42%
  • Friday, the IBB closed down -2.06% and XBI closed down -2.42%

 

Monday’s (10 of 21) incliners:

  • ReNeuron (RENE.L +$16.00 after Friday’s +$0.50);
  • Regenxbio (RGNX +$2.99 after Friday’s +$1.00);
  • Fate Therapeutics (FATE +$2.41 after Friday’s -$1.64);
  • Ultragenyx (RARE +$2.30 after Friday’s -$2.99);
  • Vericel (VCEL +$1.70 after Friday’s +$0.75);
  • Ionis Pharmaceuticals (IONS +$1.47);
  • uniQure NV (QURE +$1.02 after Friday’s -$0.94);
  • Adverum Biotechnologies (ADVM +$1.02);
  • Cellectis SA (CLLS +$0.84 after Friday’s -$1.07);
  • Intellia therapeutics (NTLA +$0.67);

Monday’s (12 of 12) decliners:

  • Alnylam Pharmaceuticals (ALNY -$3.25 after Friday’s -$7.13);
  • CRISPR Therapeutics (CRSP -$3.01);
  • BioLife Solutions (BLFS -$1.73 after Friday’s +$2.44);
  • Mesoblast (MESO -$1.19);
  • Pluristem (PSTI -$1.13);
  • Biostage (BSTG -$0.25 after Friday’s +$0.23);
  • Sage Therapeutics (SAGE -$0.23);
  • MiMedx (MDXG -$0.19);
  • Chinook Therapeutics (KDNY -$0.08);
  • Editas Medicine (EDIT -$0.08 after Friday’s -$1.06);
  • Solid Biosciences (SLDB $0.06);
  • Bellicum pharmaceutics (SLDB -$0.06);

Closing 1 Caladrius Biosciences (CLBS) and 1 –Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 21-upside were +0.35% (BCLI) to +17.68% (RENE.L) while the 12- downside of -0.26% (EDIT) to -15.62% (BSTG);
  • Friday’s percentage (%) of the 6-upside were +0.56% (RENE.L) to +16.79% (BSTG on 635 shares traded) while the 28-downside ranges from -0.62% (SLDB) to -36.65% (GBT);

 

Sentiment and a few daily indicators:

The bad followed by the good, “The U.S.  topped 10 million cases Monday as global cases surpassed 50 million. The 10 million number was reached just 10 days after the U.S. reached 9 million cases. Pfizer (PFE) and BioNTech (BNTX) announced trial data indicating their Covid-19 vaccine is more than 90% effective.”

Infection cases <Million>:

  • Monday 10 M cases
  • Friday 9.61 M cases

Monday’s death rate totaled 237,742 after Friday’s 234,049, Thursday’s 233,767, Wednesday’s 232,693, Tuesday’s 231,566 and last Monday’s 231,011 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Monday: 15 out of the 21-upside had higher than the 3-month average volume;
  • Friday: 4 out of the 6-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.89points or +3.58% at 25.75
  • Friday was down -2.72 points or -9.86% at 24.86

Downside volume:

  • Monday: 6 out of the 12-downside had higher than the 3-month average volume;
  • Friday: 7 out of the 28-downside had higher than the 3-month average volume;

 

November, the 2nd month of Q4 …

Monday (11/9) closed positive with 21 advancers, 12 decliners and 2 flats 

Friday closed negative with 6 advancers, 28 decliners and 1 flat 

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: the election is still NOT over ... as the market heads skyward, watch and wait ...

 I just didn’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.