January 6, 2021 5:56pm

As investor fears moved higher heading into the close

Numbers based facts speak better then opinion

Pre-open indication: 4 HITs and 4 MISS (in the last hours of the session)

News: REGENXBIO (RGNX) proposes $175 million offering

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

The Dow closed UP +437.80 points (+1.44%); the S&P closed UP +21.28 points (+0.57%) while the Nasdaq closed DOWN -78.17 points (-0.61%)

 

Henry’omics:

The Dow closed at a record as the U.S. Capitol is locked down after supporters of President Trump stormed past barricades and breached multiple government buildings.

  • Since the Democrats have won, that would make a 50-50 tie in the upper chamber, with VP-elect Harris as the tiebreaker vote to give the party control of the Senate. This outcome could facilitate the passing of new coronavirus relief, raising hope for the country’s economic recovery. <CNBC>

 

Data Docket: private payrolls fell 123,000 in December, marking the first contraction since the early days of the pandemic, according to a report from ADP. Economists had been expecting growth of 60,000.

  • The Fed’s policymakers continued to back the status quo of near-zero rates and bond purchases to support the recovery as vaccines are rolled out across the country, according to the minutes of the central bank's last policy meeting released Wednesday.

 

This a.m.’s post, “RegMed Investors’ (RMi) pre-open: “Georgia election results, markets will react, will the sector follow? However, the advance/decline (A/D) line was already deteriorating (Tuesday = 19/14, 1 flat and 1 acquired) versus (Monday = 26/7, 1 flat and 1 acquired)” … https://www.regmedinvestors.com/articles/11708

 

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

  • Wednesday opened positive at 21/13 and 1 flat, stayed positive at the mid-day at 28/5 and 2 flats, closing positive at 22/12, 1 flat and 1 acquired;
  • 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:

  • BioLife Solutions (BLFS), Alnylam Pharmaceuticals (ALNY), Solid Biosciences (SLDB), Pluristem (PSTI), Global Blood therapeutics (GBT) to name 5 of the 12 declining of the 35 covered

Jumping with share pricing momentum:

  • Fate Therapeutics (FATE), ReNeuron RENE.L), Intellia Therapeutics (NTLA), Regenxbio (RGNX), Editas Medicine (EDIT) to name 5 of the 22 inclining of the 35 covered

Pre-open indication:

  • 4 HITs < Sell into Strength: Caladrius Biosciences (CLBS +$0.01), CRISPR Therapeutics (CRSP +$3.23), Editas Medicine (EDIT +$3.70), Intellia Therapeutics (NTLA +$5.73);
  • 4 MISS < Precigen (PGEN -$0.11), Pluristem (PSTI -$0.19), bluebird bio (BLUE -$0.03); Maintaining SELL: Biostage (BSTG +$0.06 to $1.21 with 366 shares traded, after Tuesday’s -$0.10 to $1.15, it took 11,943 shares traded to drop -$0.10 to $1.15 the share pricing, 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. Still NO hint of a clinical trial initiation after spending approximately $75 M>

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

  • Wednesday, the IBB closed up +1.21% and XBI closed up +2.04%
  • 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%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.27 points or -1.07% at 25.07
  • Tuesday was down -1.63 points or -6.04% at 25.34
  • Monday was up +4.22 points or +18.55% at 26.97

Key metrics:

  • Sector volume was LOW with 14 of the 22-upside having higher than the 3-month average volume with the increased volume of 5 of 12-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 22-upside were +0.03% (VCEL) to +15.06% (FATE) while the 12-downside ranges from -0.07% (BLUE) to -6.06% (BLFS);

Stats: Upside volume:

  • Wednesday: 14 out of the 22-upside had higher than the 3-month average 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;

Downside volume:

  • Wednesday: 5 out of the 12-downside had higher than the 3-month average 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;

 

Wednesday’s (10 of 22) incliners:

  • Fate Therapeutics (FATE +$13.06 after Tuesday’s -$2.96 and Monday’s -$1.25);
  • ReNeuron (RENE.L +$6.40 after Tuesday's +$4.60 and Monday’s +$10.50);
  • Intellia Therapeutics (NTLA +$5.73 after Tuesday’s +$5.10 and Monday’s +$1.51);
  • Regenxbio (RGNX +$3.77);
  • Editas Medicine (EDIT +$3.70 after Tuesday’s +$5.25 and Monday’s +$1.48);
  • CRISPR Therapeutics (CRSP +$3.23 after Tuesday’s +$2.61 and Monday’s +$4.90)
  • Sage Therapeutics (SAGE +$2.93 after Tuesday’s -$1.41 and Monday’s -$0.69);
  • Ultragenyx (RARE -$2.50 after Tuesday’s -$1.48 and Monday’s -$1.96);
  • uniQure NV (QURE +$0.77 after Tuesday’s +$1.01 and Monday’s +$0.63);
  • AxoGen (AXGN +$0.68 after Tuesday’s +$0.49 and Monday’s -$0.39);

Wednesday’s (12 of 12 decliners:

  • BioLife Solutions (BLFS -$2.57);
  • Alnylam Pharmaceuticals (ALNY -$0.62 after Tuesday’s -$0.65 and Monday’s -$1.87);
  • Solid Biosciences (SLDB -$0.36);
  • Pluristem (PSTI -$0.19);
  • Global Blood therapeutics (GBT -$0.19 after Tuesday’s +$1.18 and Monday’s +$0.95);
  • Adverum Biotechnologies (ADVM -$0.14 after Tuesday’s -$0.40 and Monday’s +$1.14);
  • Bellicum Pharmaceuticals (BLCM -$0.14 after Tuesday’s +$0.32 and Monday’s -$0.13);
  • Brainstorm Cell Therapeutics (BCLI -$0.14);
  • Precigen (PGEN -$0.11 after Tuesday’s -$1.38 and Monday’s +$0.75);
  • Cellectis SA (CLLS -$0.05 after Tuesday’s -$0.42);
  • Applied Genetic Technologies (AGTC -$0.05);
  • bluebird bio (BLUE -$0.03 after Tuesday’s +$0.27 and Monday’s +$1.39);

Closing 1 - Stemline Therapeutics (STML – acquired)

 

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

  • Wednesday’s percentage (%) of the 22-upside were +0.03% (VCEL) to +15.06% (FATE) while the 12-downside ranges from -0.07% (BLUE) to -6.06% (BLFS);
  • 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:

Democrats could be on the verge of getting control of the U.S. Senate, following runoff elections for two seats in Georgia this week. That could pave the way for $2,000 stimulus checks to make it into the hands of millions of Americans. <CNBC>

Infection cases <Million>:

  • Wednesday 21.06 M cases
  • Tuesday 20.82 M cases
  • Monday 20.64 M cases

Wednesday’s death rate totaled 357, 620 after Tuesday’s 353,632, Monday’s 351,774, Thursday’s 343,818, and last Wednesday’s 340,956 <Johns Hopkins University>

 

January, the 1st month of Q1 …

Wednesday closed positive with 22 advancers, 12 decliners and 1 flat

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 as sector volatility stayed steady; if retreats, it will have to do with the slow pace of vaccine distribution in the U.S. and the sequence of Wednesday’s political violence events in many locations in the U.S.

Uncertainty reigns as disruption in capital hill will aggravate markets, I believe!

Spikes in the volatility has been about fears of dysfunctional vaccine distribution, not about higher corporate taxes which could happen if and when democrats control the Senate.

The Cboe Volatility Index (VIX) is fell -11% as many sector stocks are being sustained, falling volatility means a calmer market, or less price variance from the average price.

investors are now expecting heavy fiscal spending; that would spur economic activity and inflation.

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.