February 8, 2021 5:20pm

is a correction due in the market and sector – i.e., earnings’ LPS (loss-per-share) season in the cards? While fiscal aid/stimulus is STILL not delivered …

Pre-open indication results: 6 HITs and 1 MISS

News: REGENXBIO (RGNX) additional positive interim data from a total of eight patients in Cohorts 1 and 2 of the ongoing P1/2 trial of RGX-121 for the treatment of patients up to 5 years old diagnosed with Mucopolysaccharidosis Type II (MPS II), also known as Hunter Syndrome,

Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investor profiting! Numbers based facts speak better then opinion as I see answers in numbers to speak truth over opinion!

More than a snapshot of today’s sector movements 

The Dow closed UP +237.52 points (+0.76%); the S&P closed UP +28.76 points (+0.74%) while the Nasdaq closed UP +131.35 points (+0.95%)

 

Henry’omics:

Indexes climbed on Monday, building on a recent rally to record levels as investors remained optimistic about further COVID-19 stimulus and an economic recovery.

The Russell 2000 jumped 2.2% to another record high, after gaining 7.7% last week for its best weekly performance since June. The small-cap benchmark has surged more than 15% in 2021 as investors flocked to beaten-up value names amid rising hopes for a fast rebound in the economy. <CNBC>

 

RegMed Investors’ (RMi) pre-open: “new highs say to me - bye in some sector equities as earnings’ season is about to ramp-up. Is it better to be early than being caught in a downdraft; expectation is a strong belief that something will happen or be the case in the future in the game of market prospects and sector chance?” …  https://www.regmedinvestors.com/articles/11759

 

Pre-open indication results:  6 HITs < SELL: Biostage (BSTG -$0.19 with 1,725 shares traded); SELL into Strength: AxoGen (AXGN -$0.23), BioLife Solutions (BLFS +$1.59 – profit taking), Ionis Therapeutics (IONS -$0.46); BUY: Fate Therapeutics (FATE +$3.31), uniQure NV (QURE +$2.75) and 1 MISS < Global Blood Therapeutics (GBT -$0.07)>

 

Sentiment and COVID-19 infections:

  • ONLY 9.7% of the population has received at least one vaccine shot while 2.9% are fully vaccinated, latest CDC data shows

Infection cases <Million>: never to forget …

  • Monday 27.04 M cases,
  • Monday’s death rate totaled 463,938<Johns Hopkins University>

 

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

  • Monday opened positive at 25/8 and 2 flats, stayed positive at the mid-day to 25/8 and 2 flats, closing positive at 26/7, 1 flat and 1 acquired;
  • Friday opened positive at 20/13 and 2 flats, stayed positive at the mid-day to 25/9 and 1 acquired, closing positive at 28/6 and 1 acquired;

 

Key metrics:

  • Sector volume was LOW with 9 of the 26-upside having higher than the 3-month average volume with the increased volume of 2 of 7-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 26-upside were +0.02% (ALNY) to +14.16% (PSTI) while the 7-downside ranges from -0.14% (GBT) to -9.50% (BSTG);

 

There are clear winners — and losers — heading into the second month and Q1 of 2021.

All-time highs:

  • IBB reached an all-time high of 171.25 and the BI reached an all-time high of 169.19

Jumping with share pricing momentum:

  • Editas Medicine (EDIT), Intellia Therapeutics (NTLA), Ultragenyx (RARE), Fate Therapeutics (FATE), uniQure NV (QURE) to name 5 of the 26 inclining of the 35 covered

Hammered in today’s market:

  • Ionis Pharmaceuticals (IONS), AxoGen (AXGN), Biostage (BSTG), Chinook Therapeutics (KDNY), Caladrius Biosciences (CLBS), Global blood Therapeutics (GBT), Applied Genetic technologies (AGTC) to name 7 of the 7 declining of the 35 covered

 

Monday’s (10 of 26) incliners:

  • Editas Medicine (EDIT +$5.69 after Friday’s +$0.88);
  • Intellia Therapeutics (NTLA +$4.71 after Friday’s +$1.46);
  • Ultragenyx (RARE +$3.62 after Friday’s +$7.22);
  • Fate Therapeutics (FATE +$3.31 after Friday’s +$2.57);
  • uniQure NV (QURE +$2.75 after Friday’s -$0.17);
  • Sage Therapeutics (SAGE +$2.58 after Friday’s +$1.26);
  • Vericel (VCEL +$2.48);
  • Regenxbio (RGNX +$2.42 after Friday’s +$1.48);
  • BioLife Solutions (BLFS +$1.59 after Friday’s +$1.25);
  • Cellectis SA (CLLS +$2.56);

Monday’s (7 of 7) decliners:

  • Ionis Pharmaceuticals (IONS -$0.46);
  • AxoGen (AXGN -$0.23);
  • Biostage (BSTG -$0.19 after Friday’s -$0.06);
  • Chinook Therapeutics (KDNY -$0.11 after Friday’s -$0.10);
  • Caladrius Bioscience (CLBS -$0.09);
  • Global Blood Therapeutics (GBT -$0.07);
  • Applied Genetic Technologies (AGTC -$0.02);

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 up +2.10% and XBI closed up +4.32%
  • Friday, the IBB closed up +1.76% and XBI closed up +2.46%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +0.37 points or +1.77% at 21.24
  • Friday was down -0.90 points or -4.13% at 20.97

Upside volume:

  • Monday: 9 out of the 26-upside had higher than the 3-month average volume;
  • Friday: 5 out of the 28-upside had higher than the 3-month average volume;

Downside volume:

  • Monday: 2 out of the 7-downside had higher than the 3-month average volume;
  • Friday: 3 out of the 6-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 26-upside were +0.02% (ALNY) to +14.16% (PSTI) while the 7-downside ranges from -0.14% (GBT) to -9.50% (BSTG);
  • Friday’s percentage (%) of the 28-upside were +0.01% (SLDB) to +17.37% (AGTC) while the 6-downside ranges from -0.27% (VYGR) to -10.53% (BCLI);

 

February, the 2nd month of Q1 … a visual review identifies the range of sector volatility

Monday (2/8) closed positive with 27 advancers, 7 decliners, 1 flat and 1 acquired

Friday closed positive with 28 advancers, 6 decliners and 1 acquired

Thursday closed positive with 27 advancers, 7 decliners and 1 acquired

Wednesday closed positive with 17 advancers, 16 decliners, 1 flat and 1 acquired

Tuesday closed positive with 25 advancers, 7 decliners, 2 flats and 1 acquired

Monday (2/1) closed positive with 22 advancers, 11 decliners, 1 flat and 1 acquired

 

The Bottom Line: Warning: As new highs evolve, so won’t the declines as electronic trading reap profits before earnings’ season appears – keep watching the advance/decline (A/D) lines.

They broke the “line” today by advancing, my miss but, I won’t back down from one fundamental factor to watch.

Let’s NOT forget, it is a new tax year thus, a cut back of some (I say many) gains in the sector before the release of Q4 and FY20 “earnings” i.e., LPS (loss-per-share)!

Forewarned … earnings LPS (loss-per-share) season is coming quickly – my advice, trim and skim!!

 

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.