RegMed Investors’ (RMi) closing bell: sector stays up as momentum re-performs

January 5, 2021 5:03pm

Key word of session: sustainability

Numbers based facts speak better then opinion

Pre-open indication: 8 HIT and 0 MISS

News seems pre-occupied with Georgia’s Senate race and Biden’s agenda – it’s about the tax consequences and government spending in the next four (4) years

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

The Dow closed UP +167.71 points (+0.55%); the S&P closed UP +26.21 points (+0.71%) while the Nasdaq closed UP +120.51points (+0.95%)

Henry’omics:

Indexes rose on Tuesday, recovering some of their sharp losses from the previous session while “our” universe of stem, cell and gene therapy equities overcame a negative opening to close positive by the end of the session.

Everyone’s wallet and tax risks are being measured as the outcome as the Georgia run-off election comes to a close.

Data Docket: Economic activity in the manufacturing sector grew in December, with the overall economy notching an eighth (8^th) consecutive month of growth,

This a.m.’s post, “RegMed Investors’ (RMi) pre-open: “compression in the session. Could it be an overexpression of multiple regression, a statistical technique that predicts values of one variable on the basis of two or more other variables” … https://www.regmedinvestors.com/articles/11706

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

• Tuesday opened negative at 12/20 and 3 flats, swung positive at the mid-day at 19/15 and 1 flat, closing positive at 19/14, 1 flat and 1 acquired;
• Monday opened negative at 12/21 and 2 flats, strayed positive at the mid-day at 19/15 and 1 flat, closing positive at 26/7, 1 flat and 1 acquired;

There are clear winners — and losers — heading into the first month of 2021.

Hammered in today’s market:

• Fate Therapeutics (FATE), Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), Precigen (PGEN) to name 5 of the 14 declining of the 35 covered

Jumping with share pricing momentum:

• Editas Medicine (EDIT), ReNeuron RENE.L), Intellia Therapeutics (NTLA), CRISPER Therapeutics (CRSP), Global Blood therapeutics (GBT) to name 5 of the 19 inclining of the 35 covered

Pre-open indication: 8 HITs <Applied Genetic Technologies (AGTC +$0.00), Pluristem (PSTI +$0.10); Athersys (ATHX -$0.04), Homology Medicine (FIXX -$0.18), Solid Biosciences (SLDB -$0.41), Verastem (VSTM -$0.005), Fate Therapeutics (FATE-3.86), Biostage (BSTG -$0.10 to $1.15 -Today, it took 11,943 shares traded to drop -$0.10 to $1.15 the share pricing after Monday’s 2,652 shares for this equity to close FLAT at $1.25; it was down -$0.10. to $1.15 or -8% (twice) during the session – “pump” away. Still NO hint of a clinical trial initiation after spending approximately $75 M> 0 MISS

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

• Tuesday, the IBB closed up +0.21% and XBI closed down -0.35%
• Monday, the IBB closed down -0.66% and XBI closed up +0.12%

Key metrics:

• Sector volume was LOW with 6 of the 19-upside having higher than the 3-month average volume with the increased volume of 2 of 14-downside having higher than the 3-month average volume;

• Tuesday’s percentage (%) of the 19-upside were +0.22% (MDXG) to +9.72% (CLBS) while the 14-downside ranges from -0.13% (RGNX) to -12.60% (PGEN);

Tuesday’s (10 of 19) incliners:

• Editas Medicine (EDIT +$5.25 after Monday’s +$1.48);
• Intellia Therapeutics (NTLA +$5.10 after Monday’s +$1.51);
• ReNeuron (RENE.L +$4.60 after Monday’s +$10.50);
• CRISPR Therapeutics (CRSP +$2.61 after Monday’s +$4.90)
• Global Blood Therapeutics (GBT +$1.18 after Monday’s +$0.95);
• uniQure NV (QURE +$1.01 after Monday’s +$0.63);
• Vericel (VCEL +$0.53);
• AxoGen (AXGN +$0.49 after Monday’s -$0.39);
• Bellicum Pharmaceuticals (BLCM +$0.32 after Monday’s -$0.13);
• bluebird bio (BLUE +$0.27 after Monday’s +$1.39);

Tuesday’s (10 of 14 decliners:

• Fate Therapeutics (FATE -$2.96 after Monday’s -$1.25);
• Ultragenyx (RARE -$1.48 after Monday’s -$1.96);
• Sage Therapeutics (SAGE -$1.41 after Monday’s -$0.69);
• Precigen (PGEN -$1.38 after Monday’s +$0.75);
• Ionis Pharmaceuticals (IONS -$0.85);
• Alnylam Pharmaceuticals (ALNY -$0.65 after Monday’s -$1.87);
• Chinook Therapeutics (KDNY -$0.45);
• Cellectis SA (CLLS -$0.42);
• Solid Biosciences (SLDB -$0.40);
• Adverum Biotechnologies (ADVM -$0.40 after Monday’s +$1.14);

Closing FLAT  1 – Applied Genetic Technologies (AGTC) and 1 - Stemline Therapeutics (STML – acquired)

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

• Tuesday’s percentage (%) of the 19-upside were +0.22% (MDXG) to +9.72% (CLBS) while the 14-downside ranges from -0.13% (RGNX) to -12.60% (PGEN);
• Monday’s percentage (%) of the 26-upside were +0.14% (PSTI) to +12.73% (RENE.L) while the 7-downside ranges from -0.80% (SAGE) to -3.68% (BLCM);

Sentiment and a few daily indicators:

Rising Covid-19 cases globally and new lockdown restrictions continued to keep investors on edge. However, the U.S. rollout of multiple Covid-19 vaccines has recently been slowed down due to supply constraints.

Infection cases <Million>:

• Tuesday 20.82 M cases
• Monday 20.64 M cases

Tuesday’s death rate totaled 353,632 after Monday’s 351,774 after Thursday’s 343,818, Wednesday’s 340,956 and last Tuesday’s 336,947 <Johns Hopkins University>

Stats:

Upside volume:

• Tuesday: 6 out of the 19-upside had higher than the 3-month average volume;
• Monday: 7 out of the 26-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

• Tuesday was down -1.63 points or -6.04% at 25.34
• Monday was up +4.22 points or +18.55% at 26.97

Downside volume:

• Tuesday: 2 out of the 14-downside had higher than the 3-month average volume;
• Monday: 2 out of the 7-downside had higher than the 3-month average volume;

January, the 1^st month of Q1 …

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

Monday (1/4) closed positive with 26 advancers, 7 decliners and 2 flats

The Bottom Line: The sector beat the odds again of falling after a bad session in yesterday’s market corral. Still, the fate of markets and stocks rests on the Georgia Senate races although risk assets are likely to make further gains in the first half, regardless of the results.

Never forget, the Pac-man algorithms are getting hungry, watch the advance/decline (A/D) lines!

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.