December 21, 2020 5:50pm

Erasing earlier sector and market losses to trade in the green on Monday while lawmakers vote on a $900 billion coronavirus relief package and fright of new strain echoes

U.S. economy to get an “aid” boost that’s LATE and a little LAME

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.

Closing explanations on what you need to know for the next week!

The Dow closed UP +37.40 points (+0.12%); the S&P closed DOWN -14.49 points (-0.39%) while the Nasdaq closed DOWN -13.12 points (-0.10%)

 

Henry’omics:

The Dow closed up recovering from a 400-point loss; while the S&P 500 fell slightly in volatile trading on Monday to start the holiday week as enthusiasm over a coronavirus stimulus deal was overwhelmed by worries over a viral new COVID-19 strain in the U.K.

The intraday comeback came as lawmakers reached an agreement on a $900 billion relief package, which would provide direct payments and jobless aid to struggling Americans.

  • The announcement came after negotiators resolved a key sticking point by rolling back the Federal Reserve’s emergency lending powers. <CNBC>

Crispr Therapeutics (CRSP), Editas Medicine (EDIT) and Intellia Therapeutics (NTLA) set the sector afire as all three genetics stocks hit highs.

  • It wasn't immediately apparent what sent the three gene editing stocks soaring;
  • Although, each of the three genetics stocks had bullish Relative Strength Ratings north of 90. The RS Rating is a 1-99 measure of a stock's 12-month performance. NTLA leads with an RS Rating of 98, CRSP -95 and EDIT had a rating of 94.

uniQure NV (QURE) plummeted after the FDA temporarily halted its gene therapy test in hemophilia B patients. Patients receive gene therapy treatments like this just once. A patient who received the drug in October 2019 was diagnosed with a form of liver cancer earlier this month. More than probably a risk reduction move before year end.

 

 

From this a.m.’s Data Docket

  • Sangamo Therapeutics (SMGO) reached a 52-week of $15.85, closing at $15.09, CRISPR Therapeutics (CRSP) reached an all-time high of $166.84, Intellia Therapeutics (NTLA) reached an all-time high of $62.73, Editas Medicine (EDIT) reached an all-time high of $83.66 and Precigen (PGEN) also reached a 52-week high of $9.96.

Hammered in today’s market:

  • uniQure NV (QURE), Alnylam Pharmaceuticals (ALNY), Chinook Therapeutics (KDNY), Ultragenyx (RARE), Mesoblast (MESO) to name 5 of the 10 declining of the 35 covered

Jumping with share pricing momentum:

  • Editas Medicine (EDIT), CRISPER Therapeutics (CRSP), Intellia Therapeutics (NTLA), Regenxbio (RGNX), Sage Therapeutics (SAGE) to name 5 of the 23 inclining of the 35 covered

 

Pre-open indication: 1 MISS <SELL: Maintaining SELL: Biostage (BSTG +$0.09 with 7,282 shares “pumped’? Is it all about protecting the last private placement of $4.00 by Chinese investors?);

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: “how long can the trend stay your friend?” … https://www.regmedinvestors.com/articles/11687      

 

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

  • Monday opened negative at 7/24 and 4 flats, stayed negative at the mid-day at 15/18 and 2 flats, closing positive at 23/10 and 2 flats;
  • Friday opened positive at 26/6 and 3 flats, stayed positive at the mid-day at 28/6 and 1 flat, closing positive at 21/11 and 3 flats;

 

Key metrics:

  • Sector volume STAYED-UP with 17 of the 23-upside having higher than the 3-month average volume with the increased volume of 5 of 10-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 23-upside were +0.40% (GBT) to +29.89% (EDIT) while the 10-downside of -0.27% (SLDB) to -16.19% (QURE);

 

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

  • Monday, the IBB closed down -0.07% and XBI closed up +1.07%
  • Friday, the IBB closed up +0.43% and XBI closed up +0.61%

 

Monday’s (10 of 23) incliners:

  • Editas Medicine (EDIT +$19.25 after Friday’s +$1.70);
  • CRISPR Therapeutics (CRSP +$18.23 after Friday’s -$0.52
  • Intellia Therapeutics (NTLA +$7.32 after Friday’s +$0.97
  • Sage Therapeutics (SAGE +$2.21 after Friday’s +$5.16
  • Regenxbio (RGNX +$1.66 after Friday’s +$1.32);
  • BioLife Solutions (BLFS +$1.52);
  • bluebird bio (+$1.47 after Friday’s -$0.04);
  • Ionis Pharmaceuticals (IONS +$1.01 after Friday’s +$3.14);
  • Cellectis SA (CLLS +$0.92 after Friday’s -$0.60
  • Vericel (VCEL +$0.79);

Monday’s (10 of 10) decliner:

  • uniQure NV (QURE -$7.44 after Friday’s -$2.25);
  • Alnylam Pharmaceuticals (ALNY -$2.96 after Friday’s +$3.74);
  • Chinook Therapeutics (KDNY -$1.97 after Friday’s -$1.85);
  • Mesoblast (MESO -$0.68 after Friday’s -$4.30);
  • Ultragenyx (RARE -$0.64 after Friday’s +$3.48);
  • Brainstorm Cell Therapeutics (BCLI -0.12);
  • Applied Genetic Technologies (AGTC -$0.12 after Friday’s -$0.16);
  • Caladrius Biosciences (CLBS -$0.04);
  • Pluristem (PSTI -$0.04);
  • Solid Bioscience (SLDB -$0.02);

Closing 1 - Stemline Therapeutics (STML – acquired)

 

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

  • Monday’s percentage (%) of the 23-upside were +0.40% (GBT) to +29.89% (EDIT) while the 10-downside of -0.27% (SLDB) to -16.19% (QURE);
  • Friday’s percentage (%) of the 21-upside were +0.16% (PSTI) to +17.58% (PGEN) while the 11-downside ranges from -0.09% (BLUE) to -31.69% (MESO);

 

Sentiment and a few daily indicators:

Moderna (MRNA) is shipping its first batch of vaccine doses after receiving approval for emergency use from the U.S. FDA. Meanwhile, the vaccine by Pfizer (PFE) and BioNTech (BNTX) is being distributed to front-line health-care workers around the country.

The U.K. strain “doesn’t seem to have mutated the surface proteins of the virus in a way that they would slip past our vaccines or prior immunity. In fact, we don’t think that that’s the case,” Dr. Scott Gottlieb told CNBC’s “Squawk Box.” “But what this does suggest is that eventually this vaccine probably will evolve its surface proteins in a way that they won’t be recognized by the antibodies we have right now, and we will have to update our vaccines.”

  • Gottlieb said the COVID-19 virus did not seem to be mutating its proteins as rapidly as the seasonal flu and estimated that vaccines would need to be updated about every three years.

Eli Lilly said Monday that its COVID-19 antibody therapy “should maintain full activity against the new strain” identified in the U.K. <CNBC>

Infection cases <Million>:

  • Monday 17.86 M cases
  • Friday 17.22 M cases

Monday’s death rate totaled 317,749 after Friday’s 311,010, Thursday’s 307,770, Wednesday’s 304,094, Tuesday’s 300,723 and last Monday’s 299,191 <Johns Hopkins University>

 

Stats:

Upside volume:

  • Monday: 17 out of the 23-upside had higher than the 3-month average volume;
  • Friday: 21 out of the 21-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +3.59 points or +16.64% at 25.16
  • Friday was down -0.36 points or -1.64% at 21.57

Downside volume:

  • Monday: 5 out of the 10-downside had higher than the 3-month average volume;
  • Friday: 9 out of the 11-downside had higher than the 3-month average volume;

 

December, the 3rd month of Q4 …

Monday (12/23) closed positive with 23 advancers, 10 decliners and 2 flats

Friday closed positive with 21 advancers, 11 decliners and 3 flats

Thursday closed positive with 28 advancers, 5 decliners and 2 flats

Wednesday closed neutral with 16 advancers, 16 decliners and 3 flats

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

Monday (12/14) closed positive with 23 advancers, 12 decliners and 1 flat

Friday closed negative with 13 advancers, 20 decliners and 2 flats

Thursday closed positive with 22 advancers, 9 decliners and 4 flats

Wednesday closed negative with 10 advancers, 22 decliners and 3 flats

Tuesday closed positive with 19 advancers, 14 decliners and 2 flats

Monday (12/7) closed negative with 14 advancers, 20 decliners and 1 flat

Friday closed positive with 25 advancers, 9 decliners and 2 flats

Thursday closed neutral with 16 advancers, 16 decliners and 3 flats

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: The session was NOT as bad as I had expected although weakness was evident through the mid-day. Year end is approaching and investors need to de-risk their portfolio …

 

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.