February 22, 2021 5:06pm

Say that four (4) times, as the appetite for risk in “our” universe of earnings’ releases diminish following

News: BrainStorm Cell Therapeutics (BCLI) slammed by FDA for the “Lack of Substantial Data for Submission” … https://www.regmedinvestors.com/articles/11780     

Pre-open indication results: 10 HITs and 2 MISS

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The Dow closed up +27.37 points (+0.09%); the S&P closed DOWN -30.21 points (-0.77%) while the Nasdaq closed DOWN -341.41 points (-2.46%)

 

Henry’omics - more than a snapshot of today’s sector movements:

The final week of February …

The S&P and Nasdaq were dragged down while the Dow barely stayed up …

Monday’s move came after the S&P 500 (-0.7%) and the Nasdaq (-1.6%) snapped a two (2)-week upside streak.

 

A warning to equities: The 10-year Treasury yield jumped 14 basis points last week to 1.34%, near its highest level since February 2020. On Monday, the benchmark yield hit a high of 1.37% before turning flat. So far this month, the benchmark rate has moved up 25 basis points. A basis point is 0.01%.

 

BrainStorm Cell Therapeutics (BCLI) slammed by FDA for the “Lack of Substantial Data for Submission” … https://www.regmedinvestors.com/articles/11780    

 

Data Docket: Many believe that the jump in bond yields reflect a sign of growing confidence in the economic recovery and stocks should be able to absorb higher rates amid strong earnings.

 

RegMed Investors’ (RMi) pre-open: “big earnings’ week, it’s time to be defensive. The sector’s optimism is shaky over worries that enable fears of earning’s season LPS (loss-per-share) missing expectations” …  https://www.regmedinvestors.com/articles/11779

 

Pre-open indication results:  10 HITs < BUY:  Global Blood Therapeutics (GBT +$0.14); SELL: BioLife Solutions (BLFS -$1.52), Fate Therapeutics (FATE -$9.22), Intellia therapeutics (NTLA -$6.21), Mesoblast (MESO -$0.04), Regenxbio (RGNX -$2.52), Sangamo Therapeutics (SGMO -$0.59), Cellectis SA (CLLS -$1.83), Editas Medicine (EDIT -$4.07); SELL into Strength: Sage Therapeutics (SAGE -$1.24) and 2 MISS <BUY:  blue bird bio (BLUE -$0.61 – my soft spot) SELL: Biostage (BSTG +$0.145 with 2,094 shares traded – “pumped again”)>  

 

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

  • Monday opened negative at 12/22 and 1 acquired, stayed negative at the mid-day to 10/24 and 1 acquired, closing negative at 7/27 and 1 acquired;

 

There are clear winners — and losers — week ending the second month and Q1 of FY2021.

Jumping with share pricing momentum:

  • AxoGen (AXGN), Chinook Therapeutics (KDNY), Precigen (PGEN), MiMedx (MDXG), Biostage (BSTG), Global Blood Therapeutics (GBT), uniQure NV (QURE) to name 7 of the 7 inclining of the 35 covered

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Fate Therapeutics (FATE), ReNeuron (RENE.L), Alnylam Pharmaceuticals (ALNY), Intellia Therapeutics (NTLA) to name 5 of the 27 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 2 of the 7-upside having higher than the 3-month average volume with the increased volume of 7 of 27-downside having higher than the 3-month average volume;
  • Monday’s percentage (%) of the 7-upside were +0.22% (QURE) to +7.82% (BSTG – “pumped”) while the 27-downside ranges from -0.39% (MESO) to -33.62% (BCLI);

 

Monday’s (7 of 7) incliners:

  • AxoGen (AXGN +$0.54);
  • Chinook Therapeutics (KDNY +$0.49);
  • Precigen (PGEN +$0.41);
  • MiMedx (MDXG +$0.28 after Friday’s -$0.11);
  • Biostage (BSTG +$0.145 after Friday’s -$0.00 – “pumping the share price, yet again”);
  • Global Blood Therapeutics (GBT +$0.14 after Friday’s -$0.43);
  • uniQure NV (QURE +$0.08 after Friday’s +$1.52);

Monday’s (10 of 27) decliners:

  • CRISPR Therapeutics (CRSP -$10.42 after Friday’s +$2.32);
  • Fate Therapeutics (FATE -$9.22 after Friday’s +$8.08);
  • ReNeuron (RENE.L -$7.50 after Friday’s +$4.50);
  • Alnylam Pharmaceuticals (ALNY -$6.99 after Friday’s +$4.83);
  • Intellia Therapeutics (NTLA -$6.21 after Friday’s +$4.76);
  • Editas Medicine (EDIT -$4.07 after Friday’s +$1.13);
  • Ultragenyx (RARE -$3.45 after Friday’s +$5.14);
  • Vericel (VCEL -$2.96);
  • Regenxbio (RGNX -$2.52);
  • Brainstorm Cell Therapeutics (BCLI -$2.32 after news of FDA slam)

Closing 1 – Stemline Therapeutics (STML – acquired)

 

Sentiment and COVID-19 infections:

  • The White House expects shipments of millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics.

Infection cases <Million>: never to forget …

  • Monday 28.14 M cases,
  • Monday’s death rate totaled 499,186 <Johns Hopkins University>

 

Stats:

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

  • Monday, the IBB closed down -2.51% and XBI closed down -3%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday was up +1.40 points or +4.35% at 23.45

Upside volume: low

  • Monday: 2 out of the 7-upside had higher than the 3-month average volume;

Downside volume: low

  • Monday: 7 out of the 27-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: % and pricing drop

  • Monday’s percentage (%) of the 7-upside were +0.22% (QURE) to +7.82% (BSTG – “pumped”) while the 27-downside ranges from -0.39% (MESO) to -33.62% (BCLI);

 

February, the 2nd month of Q1 … the final week:

Monday (2/22) closed negative with 7 advancers, 27 decliners and 1 acquired

 

The BOTTOM LINE: As I stated this a.m., “The short-term path to sector equities rolling higher is smaller ... to put it succinctly, earnings’ season seems to disengage buyers to wait for bigger dips pre- and post-releases to buy back into “our’ universe.

It’s STILL all about, the “bouncing ball” of sector momentum …

Brainstorm Cell Therapeutics (BCLI) “crash” did help the risk “quotient”.

 

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.