December 31, 2020 6:55pm

No fond goodbyes, just a riotous scramble to the exit

Pre-open indication: 1 MISS - Biostage (BSTG +$0.04)

Wrapping-up a wild year of trading

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

Happy New Year!


The Dow closed UP +196.92 points (+0.65%); the S&P closed UP +24.03 points (+0.64%) while the Nasdaq closed UP +18.28 points (+0.14%)

 

Henry’omics:

The Dow and S&P 500 rose to all-time highs as markets wrapped up one of the most volatile years for the market.

Stocks were largely flat on Thursday as markets wrapped up one of the most volatile years for the market.

In a year that marked the end of the longest bull market on record as COVID-19 lockdowns battered the U.S. and global economy; equities stormed back, with the S&P 500 climbing more than 66% from its March 23 low, resulting in the shortest bear market on in history.

The gains, which have left the three (3) major averages near record highs hit earlier this week, were fueled in part by massive fiscal and monetary stimulus put in place to buttress the economy reeling from the coronavirus fallout, as well as progress on a vaccine. <Reuters>

For the year, the S&P 500 was up +16.3%, the Dow +7.3% and the Nasdaq about +43.6% which would mark the biggest yearly gain since 2009.

 

Data Docket: The number of first-time unemployment-benefits filers totaled 787,000 for the week ending Dec. 26, according to the Labor Department while expecting a print of 828,000.

 

New high:

  • Solid Biosciences (SLDB) reached a 52-week high of $8.19, closing at  $7.58

Hammered in today’s market:

  • CRISPER Therapeutics (CRSP), Editas Medicine (EDIT), Ultragenyx (RARE), Fate Therapeutics (FATE), Cellectis SA (CLLS) to name 5 of the 29 declining of the 35 covered

Jumping with share pricing momentum:

  • Precigen PGEN), AxoGen (AXGN), Biostage (BSTG), Bellicum Pharmaceuticals (BLCM) to name 2 of the 4 inclining of the 35 covered

 

Pre-open indication: 1 MISS - Biostage (BSTG +$0.04 to $1.25)

  • Today, it took 5,491 shares for this equity to close +$0.04 to $1.25; yet, yesterday (Wednesday) it took 6,800 “pumping” shares yesterday which even then created a loss of -$0.01. What a waste of dollars to protect the last private placement share price of $4.00 when transparency and communication re a clinical trial after a ten (10) month approved IND are MORE than needed … chief scientific officed, William Fodor, PhD and Hong Yu, president (not CEO)? WHY don’t you explain - preferably in English, please?

 

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

  • Thursday opened negative at 4/29 and 2 flats, stayed negative at 2/30 and 3 flats, closing negative at 4/29 and 2 flats;
  • 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 LOW with 2 of the 4-upside having higher than the 3-month average volume with the increased volume of 6 of 29-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 4-upside were +0.86% (BLCM) to +3.31% (BSTG) while the 29-downside ranges from -0.47% (MESO) to -8.35% (EDIT);
  • As 2020 ends, the S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq recorded 105 new highs and 19 new lows.

 

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

  • Thursday, the IBB closed down -0.65% and XBI closed down -2.29%
  • 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%

 

Thursday’s (4 of 4) incliners:

  • Precigen (PGEN +$0.25 after Wednesday’s -$0.03 and Tuesday’s -$0.02);
  • AxoGen (AXGN +$0.20);
  • Biostage (BSTG +$0.04);
  • Bellicum Pharmaceuticals (BLCM +$0.03);

Thursday’s (10 of 29) decliner:

  • CRISPR Therapeutics (CRSP -$8.46 after Wednesday’s +$3.74, Tuesday’s -$11.10 and Monday’s +$0.43);
  • Editas Medicine (EDIT -$6.39 after Wednesday’s +$1.63, Tuesday’s -$9.48 and Monday’s +$0.82);
  • Ultragenyx (RARE -$5.94 after Wednesday’s -$3.07, Tuesday’s -$22.45 and Monday’s -$2.98);
  • Fate Therapeutics (FATE -$2.69 after Wednesday’s +$1.03, Tuesday’s -$3.62 and Monday’s -$3.29);
  • Cellectis SA (CLLS -$2.35 after Wednesday’s +$0.68, Tuesday’s -$2.44 and Monday’s +$0.77);
  • Intellia Therapeutics (NTLA -$2.18 after Wednesday’s +$1.96, Tuesday’s -$6.25 and Monday’s -$1.27);
  • Sage therapeutics (SAGE -$2.15 after Wednesday’s +$1.50);
  • Alnylam Pharmaceuticals (ALNY -$1.07 after Wednesday’s -$0.05, Tuesday’s -$3.52 and Monday’s -$3.48);
  • uniQure NV (QURE -$1.03 after Wednesday’s +$0.65);
  • BioLife Solutions (BLFS -$0.97);

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

 

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

  • Thursday’s percentage (%) of the 4-upside were +0.86% (BLCM) to +3.31% (BSTG) while the 29-downside ranges from -0.47% (MESO) to -8.35% (EDIT);
  • 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 level of vaccinations does not fit with the narrative of intensifying COVID restrictions.

Infection cases <Million>:

  • Thursday 19.82 M cases
  • Wednesday 19.65 M cases
  • Tuesday 19.44 M cases
  • Monday 19.22 M cases

Thursday’s death rate totaled 343,818 after Wednesday’s 340,956, Tuesday’s 336,947 and Monday’s 334,025 <Johns Hopkins University>

 

Stats:

Upside volume:

  • Thursday: 2 out of the 4-upside had higher than the 3-month average 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:

  • Thursday was down -0.02 points or -0.09% at 22.75
  • 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:

  • Thursday: 6 out of the 29-downside had higher than the 3-month average 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 …

Thursday closed negative with 4 advancers, 29 decliners and 2 flats

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: Not sad to see 2020 end but accepting of its downward slide having expected the reversal!

Trading volumes were light and have dwindled as the week moved closer to Thursday, New Year's Eve; markets will be closed on Friday for the 2021’s first holiday.

I still think, we should expect prospects of a greater amount of coronavirus relief forth-coming won’t exist or happen as lawmakers continue to disagree over payments to the American public.

This market has “floated” on optimism, which is not exactly quantifiable.

The end of pandemic Investing Is NOT coming to any conclusion; volatility will continue to be the most 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.