December 2, 2020 5:17pm

Stimulus talks walk to the upside

Pre-open indication results: 6 HITs and 1 MISS

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The Dow closed up +59.87 points (+0.20%); the S&P closed UP +6.56 points (+0.18%) while the Nasdaq closed DOWN -5.74 points (-0.05%)

 

Henry’omics:

The Dow and the S&P 500 rose slightly on Wednesday, as traders ride a circuitous road surrounding a new round of U.S. fiscal stimulus negotiations.

Wednesday’s moves came after Senate Majority Leader McConnell rejected a bipartisan proposal for a $908 billion stimulus package aimed at breaking the stalemate over new stimulus in Congress.

  • Despite the positive vaccine data, Federal Reserve Chairman Jerome Powell called the economic outlook “extraordinarily uncertain” on Tuesday when he and Treasury Secretary Steven Mnuchin spoke before Congress this week as part of mandated updates on CARES Act funding. Mnuchin did call on Congress for $300 billion in aid for restaurants heading into the winter months. <CNBC>

 

Pre-open indication: 6 HITs < Maintaining SELL: Biostage (BSTG -$0.01 with 8,574 shares traded), BUY: Ionis Pharmaceuticals (IONS +$0.19); SELL into Strength: Fate Therapeutics (FATE +$0.31), CRISP Therapeutics (CCSP) +$1.96),  BUY: Pluristem (PSTI +$0.52), Mesoblast (MESO +$0.72)> and 1 MISS < Global Blood Therapeutics (GBT -$3.40)>

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: the silence after all the acclaim, the algorithms have been circling, hungry for profiteering … https://www.regmedinvestors.com/articles/11659

 

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

  • Wednesday opened negative at 10/23 and 2 flats, flipped positive at the mid-day at 20/14 and 1 flat, closing positive at 20/14 and 1 flat;
  • Tuesday opened positive at 20/12 and 4 flats, stayed positive at the mid-day at 22/12 and 1 flats, closing positive at 20/15 and 1 flat;
  • Monday opened negative at 13/20 and 2 flats, strayed neutral at the mid-day at 16/16 and 3 flats, closing positive at 21/13 and 1 flat;

 

Key metrics:

  • Sector volume was INCREASING with 9 of the 20-upside having higher than the 3-month average volume with the increased volume of 5 of 14-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 20-upside were +0.15% (MDXG) to +15.33% (CLBS) while the 14-downside ranges from -0.51% (FIXX) to -7.06% (GBT);

 

Hammered in today’s market:

  • Sage Therapeutics (SAGE), Global Blood Therapeutics (GBT), Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) to name 5 of the 14 declining of the 35 covered

Jumping with share pricing momentum:  

  • ReNeuron (RENE.L), Intellia Therapeutics (NTLA), CRSP Therapeutics (CRSP), Regenxbio (RGNX), uniQure NV (QURE) to name 5 of the 20 inclining of the 35 covered

 

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

  • Wednesday, the IBB closed down -0.23% and XBI closed down -0.09%
  • Tuesday, the IBB closed up +0.23% and XBI closed down -0.20%
  • Monday, the IBB closed up +0.35 % and XBI closed up +0.27%

 

Wednesday’s (10 of 20) incliners:

  • ReNeuron (RENE.L +$4.20 after Tuesday’s -$4.00 and Monday’s +$2.50);
  • Intellia Therapeutics (NTLA +$2.98 after Tuesday’s -$1.17 and Monday’s -$0.11 pre-offering);
  • CRISPR Therapeutics (CRSP +$1.96 after Tuesday’s +$2.66 and Monday’s +$5.370;
  • Regenxbio (+$1.21 after Tuesday’s +$1.63 and Monday’s -$2.10);
  • uniQure NV (QURE +$0.94 after Tuesday’s +$1.65 and Monday’s -$1.01);
  • Mesoblast (MESO +$0.72);
  • Ultragenyx (RARE +$0.60 after Tuesday’s -$1.16 and Monday’s -$3.88
  • AxoGen (AXGN +$0.57);
  • Pluristem (PSTI +$0.52 after Tuesday’s -$0.13 and Monday’s +$0.53);
  • Adverum Biotechnologies (ADVM +$0.33);

Wednesday’s (10 of 14) decliner:

  • Sage Therapeutics (SAGE +$4.07 after Tuesday’s -$1.45 and Monday’s -$1.48);
  • Global Blood Therapeutics (GBT -$3.40 after Tuesday’s +$2.27 and Monday’s +$1.05);
  • Alnylam Pharmaceuticals (ALNY -$2.80 after Tuesday’s +$2.36);
  • Vericel (VCEL -$0.94);
  • Editas Medicine (EDIT -$0.34 after Tuesday’s +$1.31 and Monday’s -$0.75);
  • Cellectis SA (CLLS -$0.26 after Tuesday’s +$1.47 and Monday’s +$1.16);
  • Voyager therapeutics (VYGR -$0.23 after Tuesday’s -$0.12 and Monday’s -$0.14);
  • Chinook Therapeutics (KDNY -$0.22 after Tuesday’s -$0.34 and Monday’s -$0.02);
  • Bellicum Pharmaceuticals (BLCM -$0.16 after Tuesday’s -$0.46 and Monday’s +$0.50);
  • Sangamo Therapeutics (SGMO -$0.11);

Closing 1 -Stemline Therapeutics (STML – acquired)

 

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

  • Wednesday’s percentage (%) of the 20-upside were +0.15% (MDXG) to +15.33% (CLBS) while the 14-downside ranges from -0.51% (FIXX) to -7.06% (GBT);
  • Tuesday’s percentage (%) of the 20-upside were +0.20% (MESO) to +8.56% (AGTC) while the 15-downside ranges from -0.09% (BCLI) to -12.47% (BLCM);
  • Monday’s percentage (%) of the 21-upside were +0.04% (ALNY) to +15.67% (BCLM) while the 13- downside of -0.14% (KDNY) to -5.96% (RGNX);

 

Sentiment and a few daily indicators:

Stimulus talks negotiate - up, down, round and round … don’t hold your breath!

Infection cases <Million>:

  • Wednesday 13.75 M cases
  • Tuesday 13.54 M cases
  • Monday 13.38 M cases

Wednesday’s death rate totaled 271,064 after Tuesday’s 268,129, Monday’s 266,887, Friday’s 263,525, Thursday was not recorded and last Wednesday rate was 260,190. <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Wednesday: 9 out of the 20-upside had higher than the 3-month average volume;
  • Tuesday: 10 out of the 20-upside had higher than the 3-month average volume;
  • Monday: 12 out of the 21-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +0.40 points or +1.93% at 21.17
  • Tuesday was up +0.20 points or +0.97% at 20.77
  • Monday was down -0.27 points or -1.30% at 20.57

Downside volume:

  • Wednesday: 5 out of the 14-downside had higher than the 3-month average volume;
  • Tuesday: 5 out of the 15-downside had higher than the 3-month average volume;
  • Monday: 9 out of the 13-downside had higher than the 3-month average volume;

 

December, the 3rd month of Q4 …

Wednesday closed positive with 20 advancers, 14 decliners and 1 flat 

Tuesday (12/1) closed positive with 20 advancers, 15 decliners and 1 flat 

 

The Bottom Line: Right again, the sector followed the market, that did NOT mean it will be SUSTAINABLE!

 

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.