January 11, 2021 5:20pm

Political upheaval and a pandemic have raised concerns that markets are less than rational

Numbers based facts speak better then opinion as I see answers in numbers

Pre-open indication: 8 HITs and 0 MISS

 

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The Dow closed DOWN -89.28 points (-0.29%); the S&P closed DOWN -25.07 points (-0.66%) while the Nasdaq closed DOWN -165.54 points (-1.25%)

 

Henry’omics:

Indexes dived on Monday as investors assessed valuations and the outlook for more Covid-19 relief stimulus, along with ongoing political turmoil.

Tensions were high in Washington again to start the week as House Democrats introduced an article of impeachment on Monday against President Trump citing the mob attack at the Capitol. The lower chamber plans to vote on the article sometime this week.

 

Sentiment and COVID-19 infections:

Dr. Scott Gottlieb, former head of FDA expects a larger percentage of the U.S. population to become eligible to receive a COVID-19 vaccine ahead of schedule.  “We’re living in this sort of belief that the demand here is endless, and it’s not,” Gottlieb said.” “I think by the end of February, we’re going to find that we have to open up eligibility pretty wide to get people to come in to get inoculated. We’re not going to be in this rationing situation. I think it’s going to end sooner than we think.” <CNBC>

Infection cases <Million>:

  • Monday 22.42 M cases,
  • Monday’s death rate totaled 374,442 <Johns Hopkins University>

 

This a.m.’s post, “Volatility, valuations, news and prelim earnings and a spin-off to hoot as sector momentum were sapped by record highs, outlook for Covid-19 relief stimulus and frustrated by ongoing political turmoil” … https://www.regmedinvestors.com/articles/11715

 

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

  • Monday opened negative at 20/14 and 1 flat, stayed negative at the mid-day at 12/20 and 3 flat3, closing negative at 13/20, 1 flat and 1 acquired;
  • Friday opened positive at 20/14 and 1 flat, dived negative at the mid-day to 826 and 1 flat, closing negative at 16/18 and 1 acquired;

 

Pre-open indication:

  • 8 HITs <Maintaining SELL: Biostage (BSTG -$0.06); Sell into Strength: Alnylam Pharmaceuticals (ALNY +9.97), Global Blood Therapeutics (GBT -$2.91), Intellia Therapeutics (NTLA -$5.58), Vericel (VCEL -$1.28): BUY: Applied Genetic Technologies (AGTC +$0.02), bluebird bio (BLUE +$1.86), Mesoblast (MESO +$2.74)> 0 MISS

 

Key metrics:

  • Sector volume was BALANCED with 5 of the 13-upside having higher than the 3-month average volume with the increased volume of 10 of 20-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 13-upside were +0.17% (SAGE) to +31.64% (MESO) while the 20-downside ranges from -0.62% (CLBS) to -15.06% (EDIT);

 

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

Hammered in today’s market:

  • Editas Medicine (EDIT), Ultragenyx (RARE), Intellia Therapeutics (NTLA), CRISPER Therapeutics (CRSP), Fate Therapeutics (FATE) to name 5 of the 20 declining of the 35 covered

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), Mesoblast (MESO), bluebird bio (BLUE), Regenxbio (RGNX), Pluristem (PSTI) to name 5 of the 13 inclining of the 35 covered

 

Monday’s (13 of 13) incliners:

  • Alnylam Pharmaceuticals (ALNY +$9.97 after Friday’s +$7.26);
  • Mesoblast (MESO +$2.74 after Friday’s -$0.26);
  • bluebird bio (BLUE +$1.86);
  • Regenxbio (RGNX +$1.17 after Friday’s -$2.53 – post offering);
  • Pluristem (PSTI +$1.08);
  • Ionis Pharmaceuticals (IONS +$1.06 after Friday’s +$1.90);
  • Adverum Biotechnologies (ADVM +$0.29);
  • Bellicum Pharmaceuticals (BLCM +$0.27);
  • Sage Therapeutics (SAGE +$0.15 after Friday’s +$1.20);
  • Voyager Therapeutics (VYGR +$0.10);
  • Brainstorm Cell therapeutics (BCLI +$0.09);
  • AxoGen (AXGN +$0.05);
  • Applied Genetic Technologies (AGTC +$0.02 after Friday’s -$0.18);

Monday’s (10 of 20) decliners:

  • Editas Medicine (EDIT -$13.64 after Friday’s +$0.92);
  • Ultragenyx (RARE -$8.85 after Friday’s +$5.19);
  • Intellia Therapeutics (NTLA -$5.58 after Friday’s +$0.88);
  • CRISPR Therapeutics (CRSP -$4.94 after Friday’s -$0.61)
  • Fate Therapeutics (FATE -$4.30 after Friday’s -$0.91 – stock offering closes);
  • Global Blood Therapeutics (GBT -$2.91 after Friday’s +$2.58);
  • Cellectis SA (CLLS -$2.04 after Friday’s +$0.63);
  • Vericel (VCEL -$1.28 after Friday’s +$1.37);
  • uniQure NV (QURE -$1.12 after Friday’s -$1.05);
  • Sangamo Therapeutics (SGMO -$0.77);

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

 

Stats:

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

  • Monday, the IBB closed down -0.16% and XBI closed down -0.99%
  • Friday, the IBB closed up +0.61% and XBI closed up +0.22%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +2.52 points or +11.69% at 24.08
  • Friday was down -0.81 points or -3.62% at 21.56

Upside volume:

  • Monday: 5 out of the 13-upside had higher than the 3-month average volume;
  • Friday: 12 out of the 16-upside had higher than the 3-month average volume;

Downside volume:

  • Monday: 10 out of the 20-downside had higher than the 3-month average volume;
  • Friday: 9 out of the 18-downside had higher than the 3-month average volume;

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

  • Monday’s percentage (%) of the 13-upside were +0.17% (SAGE) to +31.64% (MESO) while the 20-downside ranges from -0.62% (CLBS) to -15.06% (EDIT);
  • 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);

 

January, the 1st month of Q1 …

Monday (1/11) closed negative with 13 advancers, 20 decliners and 2 flats

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

Right again …

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.