December 29, 2020 5:29pm

It’s all about trading dynamics in last days of 2020 and the fiscal aid debate ramps-up

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.

Sorry, no pre-open post … a bad cold over past days, NOT Covid-19

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

 

The Dow closed DOWN -68.30 points (-0.22%); the S&P closed DOWN -8.32 points (-0.22%) while the Nasdaq closed DOWN -49.20 points (-0.38%)

 

Henry’omics:

Indexes dipped on Tuesday after reaching fresh all-time highs as “our” universe of stem, cell and gene therapy equities dived even deeper than Monday.

Blocking and talking the fiscal relief bill – “Senate republican Majority Leader McConnell blocked Senate democratic Minority Leader Schumer’s Tuesday attempt to unanimously pass a bill to increase direct payments in the year-end coronavirus relief package to $2,000.

McConnell brought the chamber back this week with one major goal: overriding Trump’s veto of the annual National Defense Authorization Act.

  • He outlined three priorities Trump said he wanted Congress to address when he signed the coronavirus relief and government spending bill into law Sunday: larger direct payments, Section 230 legal liability protections for internet platforms and unfounded concerns about widespread election fraud. Without detailing any specific plans, he said that “this week, the Senate will begin a process to bring these three priorities into focus.” <CNBC>

 

There are clear leaders in the daily losers as the gene editors collapse— heading into the final days of 2020:

Hammered in today’s market:

  • Ultragenyx (RARE), Editas Medicine (EDIT), CRISPER Therapeutics (CRSP), Intellia Therapeutics (NTLA), Fate therapeutics (FATE) to name 5 of the 26 declining of the 35 covered

Jumping with share pricing momentum:

  • MiMedx (MDXG), Athersys (ATHX), Vericel (VCEL (VCEL), Adverum Biotechnologies (ADVM), Solid Biosciences (SLDB), Biostage (BSTG), Caladrius Biosciences (CLBS) to name 7 of the 7 inclining of the 35 covered

 

Sorry, this morning, I missed writing about the pre-open action with a severe cold – NOT COVID-19 …

 

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

  • Tuesday opened negative at 3/31 and 1 flats, stayed negative at the mid-day at 5/28 and 2 flats, closing negative at 7/26 and 2 flats;
  • Monday opened positive at 23/9 and 3 flats, strayed neutral at the mid-day at 16/16 and 3 flats, closing negative at 8/25 and 2 flats;
  • Thursday opened positive at 18/15 and 2 flats, flipped negative at the early close at 8/25 and 2 flats;

 

Key metrics:

  • Sector volume was BALANCED with 2 of the 7-upside having higher than the 3-month average volume with the increased volume of 15 of 26-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 7-upside were +0.04% (ADVM) to +6.79% (MDXG) while the 26-downside of -0.91% (SAGE) to -13.21% (RARE);

 

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

  • Tuesday, the IBB closed down -1.15% and XBI closed down -2.93%
  • Monday, the IBB closed down -2.37% and XBI closed down -1.57%
  • Thursday, the IBB closed down -0.76% and XBI closed down -0.82%

 

Tuesday’s (7 of 7) incliners:

  • MiMedx (MDXG +$0.59 after Monday’s -$0.71);
  • Vericel (VCEL +$0.36);
  • Athersys (ATHX +$0.07);
  • Adverum Biotechnologies (ADVM +$0.01);
  • Solid Biosciences (SLDB +$0.01);
  • Caladrius Biosciences (CLBS +$0.01);
  • Biostage (BSTG +$0.01 with only 552 shares traded);

Tuesday’s (10 of 26) decliner:

  • Ultragenyx (RARE -$22.45 after Monday’s -$2.98);
  • CRISPR Therapeutics (CRSP -$11.10 after Monday’s +$0.43);
  • Editas Medicine (EDIT -$9.48 after Monday’s +$0.82);
  • Intellia therapeutics (NTLA -$6.25 after Monday’s -$1.27);
  • Fate Therapeutics (FATE -$3.62 after Monday’s -$3.29);
  • Alnylam Pharmaceuticals (ALNY -$3.52 after Monday’s -$3.48);
  • BioLife Solutions (BLFS -$3.19);
  • Cellectis SA (CLLS -$2.44 after Monday’s +$0.77);
  • Ionis Pharmaceuticals (IONS -$1.90 after Monday’s -$0.75);
  • bluebird bio (-$1.65 after Monday’s +$0.21);

Closing flat -1 ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML – acquired)

 

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

  • Tuesday’s percentage (%) of the 7-upside were +0.04% () to +6.79% (MDXG) while the 26-downside of -0.91% (SAGE) to -13.21% (RARE);
  • Monday’s percentage (%) of the 8-upside were +0.26% (CRSP) to +5.39% (PGEN) while the 25-downside of -0.14% (BLFS) to -7.55% (MDXG);
  • Thursday’s percentage (%) of the 8-upside were +0.42% (VCEL) to +3.15% (PSTI) while the 25-downside ranges from -0.0.12% (RGNX) to -13.79% (BSTG);

 

Sentiment and a few daily indicators:

Coronavirus cases in the U.S. continues to increase barely balanced by over one million people in the U.S. being vaccinated.

The U.K. is expected to approve the coronavirus vaccine developed by AstraZeneca (AZN) and the University of Oxford in the next few days. If approved this week, the AZN “shot” would likely be rolled out next week and would be administered alongside the Pfizer-BioNTech vaccine, which has been given to at least 600,000 people in the U.K. so far. <CNBC>

Infection cases <Million>:

  • Tuesday 19.44 M cases
  • Monday 19.22 M cases
  • Thursday 18.49 M cases

Tuesday’s death rate totaled 336,947 after Monday’s 334,025 <Johns Hopkins University>

 

Stats:

Upside volume:

  • Tuesday: 2 out of the 7-upside had higher than the 3-month average volume;
  • Monday: 6 out of the 8-upside had higher than the 3-month average volume;
  • Thursday: 1 out of the 8-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +1.38 points or +6.36% at 23.08
  • Monday was up +0.17 points or +0.79% at 21.70
  • Thursday was down -1.85 points or -7.94% at 21.46

Downside volume:

  • Tuesday: 15 out of the 26-downside had higher than the 3-month average volume;
  • Monday: 10 out of the 25-downside had higher than the 3-month average volume;
  • Thursday: 3 out of the 25-downside had higher than the 3-month average volume;

 

December, the 3rd month of Q4 …

Tuesday closed negative with 7 advancers, 26 decliners and 2 flats

Monday (12/28) closed negative with 8 advancers, 25 decliners and 2 flats

Friday was a market holiday

Thursday closed negative with 8 advancers, 25 decliners and 2 flats

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

Tuesday closed positive with 23 advancers, 11 decliners and 1 flat

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: I was early in stating; “investors should continue to use the stock market's strength to SELL 52-week and all-time highs”.  

Year-end approaches and investors need to de-risk their portfolio … investors could should be taking chips off the table of those who have registered upside gains in 2020.

My soapbox is still in place as I re-emphasize volatility will remain elevated into the New Year.

 

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.