February 10, 2021 5:33pm
Will fiscal aid/stimulus, when it happens and in what format cause the Fed to face challenges to economic re-opening and keep equities moving upward as they decline?
Pre-open indication results: 3 HITs and 2 MISS
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More than a snapshot of today’s sector movements
The Dow closed UP +61.97 points (+0.20%); the S&P closed DOWN -1.35 points (-0.03%) while the Nasdaq closed DOWN -35.16 points (-0.25%)
Henry’omics:
Indexes flipped on Wednesday as consumer price data showed passive inflation.
The S&P 500 and the Nasdaq ended slightly lower dragged down by financial shares and the continuing sell-off in some tech stocks.
Then, markets shrugged off remarks by Fed Chair Powell, who reassured markets interest rates will remain low for some time to spur the economy and jobs growth, but provided NO new insights on monetary policy.
Data Docket: Also, Fed Chairman Powell says rates will stay low for a while, citing a bleak job picture
RegMed Investors’ (RMi) pre-open: “a bounce-back … https://www.regmedinvestors.com/articles/11763
Pre-open indication results: 3 HITs < SELL: Biostage (BSTG -$0.28 with 4,292 shares traded after Tuesday’s 525 shares traded), Verastem (VSTM -$0.05), Pluristem (PSTI +$0.51)> and 2 MISS < Global Blood Therapeutics (GBT -$0.57), Homology Medicine (FIXX -$0.35)>
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …
- Wednesday opened positive at 30/4 and 1 flat, quickly dropped negative 15 minutes later to 12/21 and 1 acquired, stayed negative at the mid-day to 14/18, 2 flat and 1 acquired, closing negative at 8/25, 1 flat and 1 acquired;
- Tuesday opened negative at 14/20 and 1 flat, stayed negative at the mid-day to 15/18, 1 flat and 1 acquired, closing negative at 11/23 and 1 acquired;
- 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;
Key metrics:
- Sector volume was LOW with 5 of the 8-upside having higher than the 3-month average volume with the increased volume of 8 of 25-downside having higher than the 3-month average volume;
- Wednesday’s percentage (%) of the 8-upside were +0.13% () to +6.69% (PSTI) while the 25-downside ranges from -0.04% (BLUE) to -11.42% (EDIT);
There are clear winners — and losers — heading into the second month and Q1 of 2021.
Jumping with share pricing momentum:
- ReNeuron (RENE.L), Pluristem (PSTI), Regenxbio (RGNX), Bellicum Pharmaceuticals (BLCM), Applied Genetic Technologies (AGTC), Caladrius Biosciences (CLBS), Solid Biosciences (SLDB), Voyager Therapeutics (VYGR) to name 8 of the 8 inclining of the 35 covered
Hammered in today’s market:
- Editas Medicine (EDIT), CRISPR Therapeutics (CRSP), Alnylam Pharmaceuticals (ALNY), Intellia Therapeutics (NTLA), Fate therapeutics (FATE) to name 5 of the 25 declining of the 35 covered
Wednesday’s (8 of 8) incliners:
- ReNeuron (RENE.L +$2.50 after Tuesday’s -$5.00 and Monday’s flat);
- Pluristem (PSTI +$0.51);
- Regenxbio (RGNX +$0.40 after Tuesday’s -$1.52 and Monday’s +$2.42);
- Bellicum Pharmaceuticals (BLCM +$0.31 after Tuesday’s +$0.21);
- Applied Genetic Technologies (AGTC +$0.24);
- Caladrius Bioscience (CLBS +$0.04 after Tuesday’s +$0.07 and Monday’s -$0.09);
- Solid Biosciences (+$0.03);
- Voyager Therapeutics (VYGR +$0.01);
Wednesday’s (10 of 25) decliners:
- Editas Medicine (EDIT -$7.62 after Tuesday’s -$3.02 and Monday’s +$5.69);
- CRISPR Therapeutics (CRSP -$7.35 after Tuesday’s -$1.68 and Monday’s -$0.42);
- Alnylam Pharmaceuticals (ALNY -$3.49 after Tuesday’s +$2.50 and Monday’s +$0.04);
- Intellia Therapeutics (NTLA -$3.16 after Tuesday’s -$0.67 after Monday’s +$4.71):
- Fate Therapeutics (FATE -$2.01 after Tuesday’s -$3.18 and Monday’s +$3.31);
- Cellectis SA (-$1.21);
- Sage Therapeutics (SAGE -$0.82 after Tuesday’s +$0.38 and Monday’s +$2.58);
- AxoGen (AXGN -$0.61 after Tuesday’s +$0.32 and Monday’s -$0.23);
- Global Blood Therapeutics (GBT -$0.57 after Tuesday’s -$1.59 and Monday’s -$0.07);
- Sangamo Therapeutics (SGMO -$0.55 after Tuesday’s -$0.73 and Monday’s -$0.68);
Closing 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML – acquired)
Sentiment and COVID-19 infections:
- Investors remained a little too optimistic about Covid-19 vaccinations and stimulus … for HOW long?
Infection cases <Million>: never to forget …
- Wednesday 27.19 M cases,
- Wednesday’s death rate totaled 468,247<Johns Hopkins University>
Stats:
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB closed down -0.82% and XBI closed down -2.24%
- Tuesday, the IBB closed down -0.54% and XBI closed down -1.22%
- Monday, the IBB closed up +2.10% and XBI closed up +4.32%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was up +0.36 points or +1.66% at 21.99
- Tuesday was up +0.39 points or +1.84% at 21.63
- Monday was up +0.37 points or +1.77% at 21.24
Upside volume: low
- Wednesday: 5 out of the 8-upside had higher than the 3-month average volume;
- Tuesday: 1 out of the 11-upside had higher than the 3-month average volume;
- Monday: 9 out of the 26-upside had higher than the 3-month average volume;
Downside volume: low
- Wednesday: 8 out of the 25-downside had higher than the 3-month average volume;
- Tuesday: 7 out of the 23-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: % and pricing drop
- Wednesday’s percentage (%) of the 8-upside were +0.13% () to +6.69% (PSTI) while the 25-downside ranges from -0.04% (BLUE) to -11.42% (EDIT);
- Tuesday’s percentage (%) of the 11-upside were +0.19% (MDXG) to +4.41% (BLCM) while the 23-downside ranges from -0.54% (ATHX) to -6.48% (AGTC);
- 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);
February, the 2nd month of Q1 … a visual review identifies the range of sector volatility
Wednesday closed negative with 8 advancers, 25 decliners, 1 flat and 1 acquired
Tuesday closed negative with 11 advancers, 23 decliners and 1 acquired
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: A change in sector leadership is underway with the focus on the up-coming earnings’ LPS (loss-per-share) release of Q4 and FY20 results.
MY warning became self-evident: 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.
Many talk of horizons; its’s Tuesday, my horizon is Friday’s close …
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.
