November 10, 2020 6:07pm

This market will rotate until the end of the year, this will NOT be an easy economic transition

Pre-open indication results: 4 HITs and 2 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 +262.95 points (+-0.90%), the S&P closed DOWN -4.97 points (-0.14%) while the Nasdaq closed DOWN -159.93 points (-1.37%)

 

Henry’omics:

The Dow rose on Tuesday, as the S&P 500 and Nasdaq struggled amid declines yet, our universe of RegMed, stem, cell and gene therapy sector “broke’ through the resistance.  

 

Pre-open indication: 4 HITs <bluebird bio (BLUE +$0.15); Sell into strength: BioLife Solutions (BLFS +$0.15), Vericel (VCEL +$0.78), Mesoblast (MESO +$1.07)> and 2 MISS <Biostage (BSTG +$0.15 with only 200 shares traded), Global Blood Therapeutics (GBT -$0.55),

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: momentum rallies eventually exact their toll as markets and sectors end-up being overbought and cyclically rotating” … https://www.regmedinvestors.com/articles/11627

 

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

  • Tuesday opened negative at 13/17 and 5 flats, stayed negative at the mid-day at 9/923 and 3 flats, cruised positive at 3p.m. at 21/12 and 2 flats to close positive at 22/11 and 2 flats;
  • 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 8 of the 22-upside having higher than the 3-month average volume with the increased volume of 6 of 11-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 22-upside were +0.16% (IONS) to +11.11% (BSTG with only 200 shares traded) while the 11-downside of -0.46% (PSTI) to -23.21% (VYGR);

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Voyager Therapeutics (VYGR), Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), Cellectis (CLS) to name 5 of the 11 declining of the 35 covered

Jumping with share pricing momentum:  

  • Ultragenyx (RARE), uniQure NV (QURE), Fate Therapeutics (FATE), Sage Therapeutics (SAGE), Mesoblast (MESO) to name 5 of the 22 inclining of the 35 covered

 

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

  • Tuesday, the IBB closed up +0.40% and XBI closed up +1.50%
  • 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%

 

Tuesday’s (10 of 22) incliners:

  • Ultragenyx (RARE +$3.76 after Monday’s +$2.30);
  • uniQure NV (QURE +$2.00 after Monday’s +$1.02);
  • Fate Therapeutics (FATE +$1.92 after Monday’s +$2.41);
  • Sage Therapeutics (SAGE +$1.71 after Monday’s -$0.23);
  • Mesoblast (MESO +$1.07 after Monday’s -$1.19);
  • Intellia Therapeutics (NTLA +$1.78 after Monday’s +$0.67);
  • Vericel (VCEL +$0.78 after Monday’s +$1.70);
  • Regenxbio (RGNX +$0.60 after Monday’s +$2.99);
  • Precision (PGEN +$0.57);
  • AxoGen (AXGN +$0.400;

Tuesday’s (11 of 11) decliner:

  • ReNeuron (RENE.L -$10.00 after Monday’s +$16.00);
  • Voyager Therapeutics (VYGR -$2.60);
  • Alnylam Pharmaceuticals (ALNY -$2.43 after Monday’s -$3.25);
  • CRISPR Therapeutics (CRSP -$0.95 after Monday’s -$3.01);
  • Cellectis SA (CLLS -$0.92 after Monday’s +$0.84);
  • Global Blood Therapeutics (GBT -$0.55);
  • Editas Medicine (EDIT -$0.53 after Monday’s -$0.08
  • Homology medicine (FIXX -$0.26);
  • Chinook Therapeutics (KDNY -$0.22 after Monday’s -$0.08);
  • MiMedx (MDXG -$0.08 after Monday’s -$0.19);
  • Pluristem (PSTI -$004 after Monday’s -$1.13);

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

 

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

  • Tuesday’s percentage (%) of the 22-upside were +0.16% (IONS) to +11.11% (BSTG with only 200 shares traded) while the 11-downside of -0.46% (PSTI) to -23.21% (VYGR);
  • 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);

 

Sentiment and a few daily indicators:

Sentiment was influence by Pfizer (PFE) and German biotech firm BioNTech (BNTX) announcing their coronavirus vaccine was more than 90% effective in preventing Covid-19. Investors also got some positive coronavirus news after the FDA also approved Eli Lilly’s (LLY)Covid-19 treatment for emergency use.

Infection cases <Million>:

  • Tuesday 10.1 M cases
  • Monday 10 M cases
  • Friday 9.61 M cases

Tuesday’s death rate totaled 238,251 after Monday’s 237,742, Friday’s 234,049, Thursday’s 233,767, Wednesday’s 232,693 and last Tuesday’s 231,566 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Tuesday: 8 out of the 22-upside had higher than the 3-month average 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:

  • Tuesday was down -0.95 points or -3.69% at 24.80
  • 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:

  • Tuesday: 6 out of the 11-downside had higher than the 3-month average 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 …

Tuesday closed positive with 22 advancers, 11 decliners and 2 flats 

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: As I stated this a.m., “Let go of momentum driven stocks – cut holding with a profit, volatility will weaken. Don’t just sit on “some’ gains – fill your portfolio with cash and “powder” for coming lows!

Realities are … beginning to set-in re financial disasters of the economy and slow recovery.

 

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.