November 17, 2020 5:21pm

Pre-indication Results: 6 HITs and 1 MISS

News: Brainstorm Cell Therapeutics’ (BCLI -$7.93) ALS therapy fails study, but company sees signs of efficacy. Despite the negative results, talks with the FDA are being held to determine if certain patients might benefit enough to support approval.

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The Dow closed DOWN -166.49 points (-0.56%), the S&P closed DOWN -17.34 points (-0.48%) while the Nasdaq closed DOWN -24.79 points (-0.21%)

 

Henry’omics:

Indexes fell on Tuesday as a sharp decline in drug store shares and disappointing economic data weighed on the broader market.

 

Pre-open indication: 6 HITs <Sell into Strength: Cellectis SA (CLLS -$0.36), Intellia Therapeutics (NTLA +$0.49), Ionis Pharmaceuticals (IONS +$0.36), uniQure NV (QURE +$0.40), Global Blood Therapeutics (GBT +$0.19), CRISPR Therapeutics (CRSP +$1.81) and 1 MISS < Biostage (BSTG +$0.05 with 371 shares traded),

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: is the sector recognized as a glass-half-full, half-empty or ready for a new pour? https://www.regmedinvestors.com/articles/11638

 

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

  • Tuesday opened negative at 6/27 and 2 flats, flipped positive at the mid-day at 18/15 and 2 flats, closing positive at 18/15 and 2 flats;
  • Monday opened positive at 19/16 and 2 flats, stayed positive at the mid-day at 22/12 and 1 flat, closing positive at 19/15 and 1 flat;

 

Key metrics:

  • Sector volume was the usual LOW with 4 of the 18-upside having higher than the 3-month average volume with the increased volume of 7 of 15-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 18-upside were +0.45% (GBT) to +4.22% (PSTI) while the 15-downside ranges from -0.09% (BLUE) to -66.33% (BCLI);

 

Hammered in today’s market:

  • Brainstorm Cell Therapeutics (BCLI), Alnylam Pharmaceuticals (ALNY), Fate Therapeutics (FATE), Applied Genetic Technologies (AGTC), Chinook Therapeutics (KDNY) to name 5 of the 15 declining of the 35 covered

Jumping with share pricing momentum:  

  • CRISPR Therapeutics (CRSP), BioLife Solutions (BLFS), Regenxbio (RGNX), Sage Therapeutics (SAGE), Ultragenyx (RARE), to name 5 of the 18 inclining of the 35 covered

 

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

  • Tuesday, the IBB closed down -0.23% and XBI closed up +0.88%
  • Monday, the IBB closed up +0.01% and XBI closed up +0.48%

 

Tuesday’s (10 of 18) incliners:

  • CRISPR Therapeutics (CRSP +$1.81 after Monday’s +$2.80);
  • BioLife Solutions (BLFS +$1.09 after Monday’s -$1.02);
  • Regenxbio (RGNX +$0.82 after Monday’s +$1.25);
  • Sage Therapeutics (SAGE +$0.78 after Monday’s -$6.05);
  • Ultragenyx (RARE +$0.70 after Monday’s +$1.45);
  • ReNeuron (RENE.L +$0.50 after Monday’s +$1.00);
  • Intellia therapeutics (NTLA +$0.49 after Monday’s +$1.12);
  • uniQure NV (QURE +$0.40 after Monday’s +$0.74);
  • Pluristem (PSTI +$0.38 after Monday’s -$0.16);
  • Ionis Pharmaceuticals (IONS +$0.36 after Monday’s +$0.58);

Tuesday’s (10 of 15) decliner:

  • Brainstorm Cell Therapeutics (BCLI -$7.92 or -66.33% to $4.02);
  • Alnylam Pharmaceuticals (ALNY -$1.75 after Monday’s -$4.46);
  • Applied Genetic Technologies (AGTC -$0.60);
  • Chinook Therapeutics (KDNY -$0.40);
  • Fate Therapeutics (FATE -$0.38 after Monday’s +$2.29);
  • Cellectis SA (CLLS -$0.36 after Monday’s +$0.94);
  • Editas Medicine (EDIT -$0.31 after Monday’s -$0.17);
  • Mesoblast (MESO -$0.23);
  • Precigen (PGEN -$0.20 after Monday’s +$0.49);
  • Athersys (ATHX -$0.13);

Closing 1 Bellicum Pharmaceuticals (BLCM) and 1 -Stemline Therapeutics (STML – acquired)

 

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

  • Tuesday’s percentage (%) of the 18-upside were +0.45% (GBT) to +4.22% (PSTI) while the 15-downside ranges from -0.09% (BLUE) to -66.33% (BCLI);
  • Monday’s percentage (%) of the 19-upside were +0.60% (FIXX) to +8.38% (PGEN) while the 15- downside of -0.35% (KDNY) to -8.16% (BSTG);

 

Sentiment and a few daily indicators:

Sentiment took a hit after data showed retail sales increased less than expected in October. Retail sales rose 0.3% last month, versus a 0.5% gain expected by economists.

Infection cases <Million>:

  • Tuesday 11.2 M cases
  • Monday 11.03 M cases

Tuesday’s death rate totaled 247,437 after Monday’s 246,224, Friday’s 242,536, Thursday’s 241,907, Wednesday’s 239,732 and last Tuesday’s 238,251 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Tuesday: 4 out of the 18-upside had higher than the 3-month average volume;
  • Monday: 8 out of the 19-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.26 points or +1.16% at 22.71
  • Monday was down -0.65 points or -2.81% at 22.45

Downside volume:

  • Tuesday: 7 out of the 15-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 …

Tuesday closed positive with 18 advancers, 15 decliners and 2 flats 

Monday (11/16) closed positive with 19 advancers, 15 decliners and 1 flat   

Friday closed positive with 22 advancers, 11 decliners and 1 flat 

Thursday closed negative with 15 advancers, 19 decliners and 1 flat 

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

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: Markets HAD reached new highs, so I naturally get nervous and call for SELLs into Strength. What sealed my contrarian position was the disappointing retail sales “numbers”.  There’s still more than doubt and uncertainty in the short term.

The BIGGEST issue is the number of coronavirus cases continues to increase, diminishing the country’s near-term economic outlook.

 

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.