December 30, 2020 6:09pm

After three (3) down sessions, the sector finds some momentum from being oversold

Pre-open indication: 1 HIT - Biostage (BSTG -$0.01 to $1.21)

Wednesday’s move higher came after a British regulator approved a coronavirus vaccine developed by the University of Oxford and AstraZeneca A(AZN) for emergency use.

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

The Dow closed UP +73.89 points (+0.74%); the S&P closed UP +5 points (+0.13%) while the Nasdaq closed UP +19.78 points (+0.15%)

 

Henry’omics:

Indexes rose on Wednesday as the market tried to reclaim record highs after a British regulator approved a coronavirus vaccine developed by the University of Oxford and AstraZeneca for emergency use.

The Senate currently has no plans to vote on a bill that would increase checks to $2,000 from $600.

With just two trading days left in the year, the major averages were on track to end 2020 higher. The Dow up nearly 6.6% for the year, while the S&P 500 has gained 15.5% along with the Nasdaq, which has gained 43.4%. with the Russell 2000 up +19%.

 

Hammered in today’s market:

  • Ultragenyx (RARE), Mesoblast (MESO), Adverum Biotechnologies (ADVM), Precigen (PGEN), Biostage (BSTG), Brainstorm cell Therapeutics (BCLI) to name 6 of the 6 declining of the 35 covered

Jumping with share pricing momentum:

  • CRISPER Therapeutics (CRSP), Intellia Therapeutics (NTLA), Editas Medicine (EDIT), Sage Therapeutics (SAGE), Vericel (VCEL (VCEL) to name 5 of the 27 inclining of the 35 covered

 

Pre-open indication: 1 HIT - Biostage (BST +$0.01 to $1.21 with 6,842 shares traded)

  • Yesterday, it took 600 shares for this equity to a +$0.01; yet, today it took 6,842 “pumping” shares today which even then created a loss. What a waste of dollars to protect a share price when transparency and communication re a clinical trial after a ten (10) month approved IND are MORE than needed … chief scientific officer, William Fodor, PhD? WHY don’t you stand-up and explain?

 

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

  • Wednesday opened positive at 29/4 and 2 flats, stayed positive at the mid-day at 29/4 and 2 flats closing positive at 27/6 and 2 flats;
  • 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;

 

Key metrics:

  • Sector volume was BALANCED with 6 of the 27-upside having higher than the 3-month average volume with the increased volume of 3 of 6-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 27-upside were +0.02% (BLUE) to +17.41% (SLDB) while the 6-downside ranges from -0.22% (BCLI) to -2.08% (RARE);

 

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

  • Wednesday, the IBB closed up +0.38% and XBI closed up +1.34%
  • 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%

 

Wednesday’s (10 of 27) incliners:

  • CRISPR Therapeutics (CRSP +$3.74 after Tuesday’s -$11.10 and Monday’s +$0.43);
  • Vericel (VCEL +$2.20 after Tuesday’s +$0.36);
  • Intellia therapeutics (NTLA +$1.96 after Tuesday’s -$6.25 and Monday’s -$1.27);
  • Editas Medicine (EDIT +$1.63 after Tuesday’s -$9.48 and Monday’s +$0.82);
  • Sage therapeutics (SAGE +$1.50);
  • Solid Biosciences (SLDB +$1.14 after Tuesday’s +$0.01);
  • Fate Therapeutics (FATE +$1.03 after Tuesday’s -$3.62 and Monday’s -$3.29);
  • Cellectis SA (CLLS +$0.68 after Tuesday’s -$2.44 and Monday’s +$0.77);
  • uniQure NV (QURE +$0.65);
  • Alnylam Pharmaceuticals (ALNY +$0.48);

Wednesday’s (6 of 6) decliner:

  • Ultragenyx (RARE -$3.07 after Tuesday’s -$22.45 and Monday’s -$2.98);
  • Mesoblast (MESO -$0.07 after Tuesday’s -$0.05);
  • Adverum Biotechnologies (ADVM -$0.05 after Tuesday's +$0.00);
  • Alnylam Pharmaceuticals (ALNY -$0.05 after Tuesday’s -$3.52 and Monday’s -$3.48);
  • Precigen (PGEN -$0.03 after Tuesday’s -$0.02);
  • Biostage (BSTG -$0.01 after Tuesday’s +$0.01);
  • Brainstorm cell therapeutics (BCLI -$0.01);

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

 

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

  • Wednesday’s percentage (%) of the 27-upside were +0.02% (BLUE) to +17.41% (SLDB) while the 6-downside ranges from -0.22% (BCLI) to -2.08% (RARE);
  • 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);

 

Sentiment and a few daily indicators:

The coronavirus vaccine developed by AstraZeneca (AZN) and the University of Oxford was approved for emergency use in the U.K. and is expected to be rolled out next week.

Infection cases <Million>:

  • Wednesday 19.65 M cases
  • Tuesday 19.44 M cases
  • Monday 19.22 M cases

Wednesday’s death rate totaled 340,956 after Tuesday’s 336,947 and Monday’s 334,025 <Johns Hopkins University>

 

Stats:

Upside volume:

  • Wednesday: 6 out of the 27-upside had higher than the 3-month average 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;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.31 points or -1.34% at 22.77
  • Tuesday was up +1.38 points or +6.36% at 23.08
  • Monday was up +0.17 points or +0.79% at 21.70

Downside volume:

  • Wednesday: 3 out of the 6-downside had higher than the 3-month average 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;

 

December, the 3rd month of Q4 …

Wednesday closed positive with 27 advancers, 6 decliners and 2 flats

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 think, we are wrong that weighing the prospects of a greater amount of coronavirus relief are forth-coming in the short-term as lawmakers continued to disagree over direct payments to Americans.

This market is “floating” on optimism, which is not exactly quantifiable although with just one trading day left in the year, the major averages were on track to end 2020 higher.

The end of pandemic Investing Is coming to an end, so volatility will continue to be variable issue.

To reiterate, 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.