January 8, 2021 6:10pm

Right yet again, “it’s time to take some profit off the table from a sprinting sector and run-away market”

The week in review ...

Numbers based facts speak better then opinion

Pre-open indication: 10 HITs and 0 MISS

 

Where are the canaries in the sector coal mine, am I the only one?  Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investor profiting!

The Dow closed UP +56.84 points (+0.18%); the S&P closed UP +20.89 points (+0.55%) while the Nasdaq closed UP +134.49 points (+1.03 %)

 

Henry’omics:

After a high note, the first trading week failed to stem the index downdraft as they closed up on Friday after the release of data showing the U.S. economy unexpectedly lost jobs last month.

The unexpected drop in employment came as the recent surge in Covid-19 cases across the country has forced state and local governments to re-take stricter measures to mitigate the outbreak. More than 21.5 million coronavirus cases have now been confirmed in the U.S., according to data from Johns Hopkins University. <CNBC>

For the week, the Dow gained +1%, the S&P 500 +1% and the Nasdaq advanced 2.4%.

 

Data Docket: The Labor Department reported Friday that nonfarm payrolls fell by 140,000. That was below expectations for 50,000 from economists surveyed by Dow Jones.

 

Sentiment and COVID-19 infections:

  • U.S. jobs recovery faltered as COVID-19 infections and hospitalizations surged as the hiring streak cracked.
  • Followed by bond yields jumping, boosting risks of inflation and higher borrowing costs, while making debt securities more alluring than stocks to income investors – which should/could make economic recovery taking much longer!

Infection cases <Million>:

  • Friday 21.61 M cases, Thursday 21.41 M cases, Wednesday 21.06 M cases, Tuesday 20.82 M cases and Monday 20.64 M cases
  • Friday’s death rate totaled 365,882 after Thursday’s 362,983, Wednesday’s 357, 620, Tuesday’s 353,632 and Monday’s 351,774 <Johns Hopkins University>

 

This a.m.’s post, “RegMed Investors’ (RMi) pre-open: “prudence is selling into strength; it’s time to take some profit off the table from a sprinting sector and run-away market” …  https://www.regmedinvestors.com/articles/11713

 

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

  • Friday opened positive at 20/14 and 1 flat, dived negative at the mid-day to 8/26 and 1 flat, closing negative at 16/18 and 1 acquired;
  • Thursday opened positive at 31/3 and 1 flat, stayed positive at the mid-day at 29/5 and 1 flat, closing positive at 31/2, 1 flat and 1 acquired;
  • 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;

 

Pre-open indication:

  • 10 HITs <Maintaining SELL: Biostage (BSTG -$0.04); Sell into Strength: Applied Genetic Technologies (AGTC -$0.18), Athersys (ATHX -$0.01), Cellectis SA (CLLS +$0.63), Editas Medicine (EDIT +$0.92), FATE Therapeutics (FATE -$0.91), Homology Medicine (FIXX +$0.20), Intellia Therapeutics (NTLA +$0.88), Solid Biosciences (SLDB -$1.78), Verastem (VSTM +$0.19)> 0 MISS

 

Key metrics:

  • Sector volume INCREASED with 12 of the 16-upside having higher than the 3-month average volume with the increased volume of 9 of 18-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 16-upside were +0.25% (KDNY) to +8.12% (VSTM) while the 18-downside ranges from -0.22% (BCLI) to -20.99% (SLDB);

 

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

All-time and 52-week highs;

  • IBB reached all-time high of $159.50, Editas Medicine (EDIT) reached 52-week high of $97.59, Intellia Therapeutics (NTLA) all-time high of $78.89, CRISPR Therapeutics (CRSP) reached an all-time high of $198.44

Hammered in today’s market:

  • ReNeuron (RENE.L), Regenxbio (RGNX), Solid Biosciences (SLDB), uniQure NV (QURE), Fate Therapeutics (FATE) to name 5 of the 18 declining of the 35 covered

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), Ultragenyx (RARE), Global Blood Therapeutics (GBT), Ionis Pharmaceuticals (IONS), Vericel (VCEL) to name 5 of the 16 inclining of the 35 covered

 

Friday’s (10 of 16) incliners:

  • Alnylam Pharmaceuticals (ALNY +$7.26 after Thursday’s +$12.57, Wednesday’s -$0.62, Tuesday’s -$0.65 and Monday’s -$1.87);
  • Ultragenyx (RARE +$5.19 after Thursday’s +$7.91, Wednesday’s -$2.50, Tuesday’s -$1.48 and Monday’s -$1.96);
  • Global Blood Therapeutics (GBT +$2.58);
  • Ionis Pharmaceuticals (IONS +$1.90);
  • Vericel (VCEL +$1.37 after Thursday’s +$3.02);
  • Sage Therapeutics (SAGE +$1.20 after Thursday’s -$1.15);
  • Editas Medicine (EDIT +$0.92 after Thursday’s +$9.12 after Wednesday’s +$3.70, Tuesday’s +$5.25 and Monday’s +$1.48);
  • Intellia Therapeutics (NTLA +$0.88 after Thursday’s +$10.74, Wednesday’s +$5.73, Tuesday’s +$5.10 and Monday’s +$1.51);
  • Cellectis SA (CLLS +$0.63 after Thursday’s +$1.65);
  • Homology Medicine (FIXX +$0.20);

Friday’s (10 of 18) decliners:

  • ReNeuron (RENE.L -$3.50 after Thursday’s +$6.50, Wednesday’s +$6.40, Tuesday’s +$4.60 and Monday’s +$10.50);
  • Regenxbio (RGNX -$2.53 – post offering);
  • Solid Biosciences (SLDB -$1.78 - disappointing clinical results for experimental gene therapy SRP-9001 in treating rare genetic disease Duchenne muscular dystrophy (DMD);
  • uniQure NV (QURE -$1.05 after Thursday’s +$3.49, Wednesday’s +$0.77, Tuesday’s +$1.01 and Monday’s +$0.63);
  • Fate Therapeutics (FATE -$0.91 – stock offering closes, after Thursday’s +$17.44, Wednesday’s +$13.06, Tuesday’s -$2.96 and Monday’s -$1.25);
  • MiMedx (MDXG -$0.75);
  • CRISPR Therapeutics (CRSP -$0.61 after Thursday’s +$30.58, Wednesday’s +$3.23, Tuesday’s +$2.61 and Monday’s +$4.90)
  • Mesoblast (MESO -$0.26);
  • Precigen (PGEN -$0.22);
  • Applied Genetic Technologies (AGTC -$0.18);

Closing 1 - Stemline Therapeutics (STML – acquired)

 

Stats:

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

  • Friday, the IBB closed up +0.61% and XBI closed up +0.22%
  • Thursday, the IBB closed up +3.04% and XBI closed up +4.11%
  • 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:

  • Friday was down -0.81 points or -3.62% at 21.56
  • Thursday was down -2.70 points or -10.77% at 22.37
  • 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

Upside volume:

  • Friday: 12 out of the 16-upside had higher than the 3-month average volume;
  • Thursday: 16 out of the 31-upside had higher than the 3-month average 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:

  • Friday: 9 out of the 18-downside had higher than the 3-month average volume;
  • Thursday: 1 out of the 2-downside had higher than the 3-month average 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;

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

  • Friday’s percentage (%) of the 16-upside were +0.25% (KDNY) to +8.12% (VSTM) while the 18-downside ranges from -0.22% (BCLI) to -20.99% (SLDB);
  • Thursday’s percentage (%) of the 31-upside were +0.63% (PGEN) to +19.77% (SLDB) while the 2-downside ranges from -0.63% (CLBS) to -0.83% (BSTG);
  • 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);

 

 

January, the 1st month of Q1 …

Friday closed negative with 16 advancers, 18 decliners and 1 flat

Thursday closed positive with 31 advancers, 2 decliners and 2 flats

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: I always love Friday, as a time to escape the early mornings to quantify and qualify the results of an over-heated session.

Sector volatility remains fluid … as I had stated, “Start taking some profits even if some money is left on the table – safety is cash in your pocket of portfolio!”

While markets seemed to ignore and side-step the government riots as markets focused on the broader issue of certifying Biden’s presidency.

Never forget, the “hungry” Pac-man algorithms were satiating as the sector soared!

 

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.