March 5, 2021 5:35pm

As markets reversed from an earlier sell-off, jumped as a rally in bond yields eased and a stronger-than-expected jobs report boosted optimism; while, the sector drifted to a counter-trend

Pre-open indication results: 5 HITs and 2 MISS

Numbers based facts speak better then opinion as I see answers in numbers to speak truth over opinion!

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What I provide is a trusted source of share pricing intelligence

The Dow closed UP +572.16 points (+1.85%); the S&P closed UP +73.47 points (+1.95%) while the Nasdaq closed UP +196.68 points (+1.55%)

 

Henry’omics:

All three (3) indexes reversed from a sharp sell-off and climbed higher on Friday …

The Dow climbed 600 points after losing 150 points, the S&P 500 last traded up 1.9% after shedding 1% earlier; while the Nasdaq gained 1.4% in the volatile session having dropped -2.6%.

The Nasdaq logged its third straight weekly decline.

The focus is also on a $1.9 trillion coronavirus aid bill as a sharply divided U.S. Senate began what was expected to be a long debate over a slew of amendments on how that money would be spent.

 

Data docket: U.S. businesses added 379,000 jobs in February, topping expectations, as signs of the economic recovery gather pace.

 

RegMed Investors’ (RMi) pre-open: “lately markets are more forbidding than Russian roulette. Buying into sector equities is about assessing risk with pricing sustainable.” …  https://www.regmedinvestors.com/articles/11798

 

Pre-open indication results:  6 HITs <SELL: Biostage (BSTG -$0.00 with 217 shares); Falling Knives: Bellicum Pharmaceuticals (BLCM -$0.08), Editas Medicine (EDIT +1.27), Cellectis SA (CLLS -$1.12), Intellia Therapeutics (NTLA -$2.61) BUY: bluebird bio (BLUE +$0.74), and 1 MISS < Homology Medicine (FIXX -$0.27)

 

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

  • Friday opened negative at 11/22 1 flat and 1 acquired, stayed negative at the mid-day to 11/22, 1 flat and 1 acquired, closing positive at 18/17, 2 flats and 1 acquired;
  • Thursday opened negative at 1/32, 1 flat and 1 acquired, stayed negative at the mid-day to 7/26, 1 flat and 1 acquired, closing negative at 3/30, 1 flat and 1 acquired;
  • Wednesday opened negative at 2/30, 2 flat and 1 acquired, stayed negative at the mid-day to 4/29, 1 flat and 1 acquired, closing negative at 3/30, 1 flat and 1 acquired;
  • Tuesday opened negative at 16/17, 1 flat and 1 acquired, stayed negative at the mid-day to 15/18, 1 flat and 1 acquired, closing negative at 8/26 and 1 acquired;
  • Monday opened positive at 26/6, 2 flat and 1 acquired, stayed positive at the mid-day to 26/6, 2 flat and 1 acquired, closing positive at 27/6, 1 flat and 1 acquired;

 

There are clear winners  and losers:

Jumping with share pricing momentum:

  • Sage Therapeutics (SAGE), Alnylam Pharmaceuticals (ALNY), ReNeuron (RENE.L), Vericel (VCEL), Ionis Pharmaceuticals (IONS) to name 5 of the 18 inclining of the 35 covered

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA), Fate Therapeutics (FATE), Ultragenyx (RARE), Editas medicine (EDIT) to name 5 of the 14 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 8 of the 18-upside having higher than the 3-month average volume with the volume of 9 of 14-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 18-upside were +0.54% (ATHX) to +8.96% (SAGE) while the 14-downside ranges from -0.11% (MESO) to -6.73% (PSTI);

 

Friday’s (10 of 18) incline

  • Sage Therapeutics (SAGE +$6.33 after Thursday’s -$5.52, Wednesday’s -$7.97, Tuesday’s -$3.14 and Monday’s +$2.71);
  • Alnylam Pharmaceuticals (ALNY +$6.02 after Thursday’s -$6.95, Wednesday’s -$8.09 and Tuesday’s +$3.94);
  • ReNeuron (RENE.L +$2.50 after Thursday’s -$6.50, Wednesday’s +$4.00, Tuesday’s +$2.50 and Monday’s -$6.00);
  • Vericel (VCEL +$2.10);
  • Ionis Pharmaceuticals (IONS +$1.51);
  • Editas Medicine (EDIT +$1.27 after Thursday’s -$2.77, Wednesday’s -$2.56, Tuesday’s -$1.20 and Monday’s +$3.03);
  • bluebird bio (BLUE +$0.74);
  • Regenxbio (RGNX +$0.72);
  • Global Blood therapeutics (GBT +$0.62 after Thursday’s -$1.98);

Friday’s (10 of 14) decliners:

  • Intellia Therapeutics (NTLA -$2.61 after Thursday’s -$3.29, Wednesday’s -$4.26, Tuesday’s -$2.06 after Monday’s +$3.57);
  • Cellectis SA (CLLS -$1.12 after earnings’ release);
  • BioLife Solutions (BLFS -$0.96);
  • CRISPR Therapeutics (CRSP -$0.84 after Thursday’s -$3.59 and Wednesday’s -$10.69);
  • uniQure NV (QURE -$0.57 after Thursday’s -$1.80);
  • Ultragenyx (RARE -$0.47 after Thursday’s -$6.67, Wednesday’s +$14.63 and Tuesday’s -$2.54);
  • Pluristem (PSTI -$0.36);
  • Homology Medicine (FIXX -$0.27);
  • Applied genetic technologies (AGTC -$0.18);
  • Ultragenyx (RARE -$0.13);

Closing 2 – Biostage (BSTG), Verastem (VSTM) and 1 - Stemline Therapeutics (STML – acquired)

 

Sentiment and COVID-19 infections:

  • More U.S. states are lifting coronavirus restrictions on residents and nonessential businesses

Infection cases <Million>: never to forget …

  • Friday 28.82 M cases,
  • Friday’s death rate totaled 520,356 <Johns Hopkins University>

 

Stats:

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

  • Friday, the IBB closed up +2.05% and XBI closed up +2.47%
  • Thursday, the IBB closed down -2.41% and XBI closed down -3.22%
  • Wednesday, the IBB closed down -3.58% and XBI closed down -4.71%
  • Tuesday, the IBB closed down -2.05% and XBI closed down -3.13%
  • Monday, the IBB closed up +1.73% and XBI closed up +2.430%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -3.91 points or -13.69% at 24.66
  • Thursday was up +1.90 points or +7.12% at 28.57
  • Wednesday was up +2.57 points or +10.86% at 26.67
  • Tuesday was up +0.75 points or +3.21% at 24.10
  • Monday was down -4.60points or -16.46% at 23.25

 

Upside volume: increasing

  • Friday: 8 out of the 18-upside had higher than the 3-month average volume;
  • Thursday: 0 out of the 3-upside had higher than the 3-month average volume;
  • Wednesday: 1 out of the 3-upside had higher than the 3-month average volume;
  • Tuesday: 3 out of the 8-upside had higher than the 3-month average volume;
  • Monday: 1 out of the 27-upside had higher than the 3-month average volume;

 

Downside volume: increasing

  • Friday: 9 out of the 14-downside had higher than the 3-month average volume;
  • Thursday: 19 out of the 30-downside had higher than the 3-month average volume;
  • Wednesday: 5 out of the 30-downside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 26-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 6-downside had higher than the 3-month average volume;

 

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

  • Friday’s percentage (%) of the 18-upside were +0.54% (ATHX) to +8.96% (SAGE) while the 14-downside ranges from -0.11% (MESO) to -6.73% (PSTI);
  • Thursday’s percentage (%) of the 3-upside were +0.27% (SGMO) to +0.72% (VYGR) while the 30-downside ranges from -1.90% (KDNY) to -10.73% (MDXG);
  • Wednesday’s percentage (%) of the 3-upside were +1.08% (MDXG) to +3.90% (RENE.L) while the 30-downside ranges from -0.17% (KDNY) to -10.46% (RARE);
  • Tuesday’s percentage (%) of the 8-upside were +0.75% (KDNY) to +25.82% (SLDB) while the 27-downside ranges from -0.37% (CRSP) to -8.78% (ADVM);
  • Monday’s percentage (%) of the 27-upside were +0.44% (ALNY) to +8.46% (AGTC) while the 6-downside ranges from -0.23% (VCEL) to -5.41% (RENE.L);

 

March, the 3rd month of Q1/21:

Friday closed positive with 18 advancers, 14 decliners, 2 flats and 1 acquired

Thursday closed negative with 3 advancers, 30 decliners, 1 flat and 1 acquired

Wednesday closed negative with 3 advancers, 30 decliners, 1 flat and 1 acquired

Tuesday closed negative with 8 advancers, 26 decliners and 1 acquired

Monday (3/1) closed positive with 27 advancers, 6 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: There is a lot of confusion in the sector; that at the least, I had expected during earnings’ season and these volatile markets.

Markets are scary, frightening investors – volatilities basis is pure speculation i.e., gambling.

NOT for me - I am STILL sending up a red flag on stock pricing until earnings’’ season completes its run.

This sell-off has been coming for months and weeks, it just got stronger in March, remember when I mentioned the “Ides of march” coming early!

There is always a shift going-on however, these last two (2) months and one (1) week continues to leave me … QUESTIONING each WEEK as I have said recently - my horizon on Monday is to meet on Friday.

As to earnings’ season: “Again, “forewarned … earnings LPS (loss-per-share) season is upon us – my advice, trim and skim … if one can!”

 

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.