March 17, 2021 6:14pm

Our universe of cell and gene therapy jumped from the downside as the Fed ensured economic recovery

Pre-open indication results: 7 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 +189.42 points (+0.58%); the S&P closed UP +11.41 points (+0.29%) while the Nasdaq closed UP +53.64 points (+0.40 %)

 

Henry’omics:

U.S. stocks erased earlier losses and jumped higher Wednesday after the Federal Reserve said it sees no interest rate hikes through 2023 and that it will let inflation run hotter than usual to ensure a full economic recovery.

While stocks took a leg higher Wednesday afternoon; investors digested Powell’s monetary policy decision and upgraded economic outlook.

Treasury yields climbed, and the yield on the benchmark 10-year Treasury note jumped to more than 1.65%.

Bottom Line - no interest rate hikes through 2023 and Fed will let inflation run hotter than usual to ensure a full economic recovery

 

Data Docket: Fed Chair Powell said in a press conference that the Fed would need to see a material and sustained move in inflation above 2% before considering changes to its current easy policy stance.

 

RegMed Investors’ (RMi) pre-open: “waiting for Powell is like sitting next to Godot on the bench; whether we like it or not, there’s is a short-term focus to the sector” … https://www.regmedinvestors.com/articles/11818

 

Pre-open indication results:  7 HITs < SELL: Biostage (BSTG -$0.00 with 36 shares), bluebird bio (BLUE -$1.39), Ionis Pharmaceuticals (IONS -$0.95), Sangamo Therapeutics (SGMO +$0.38), Sage Therapeutics (SAGE +$2.50), Global Blood Therapeutics (GBT +$0.05), Intellia Therapeutics (NTLA +$1.47) and 2 MISS < CRISPR Therapeutics (CRSP +$0.53), Editas Medicine (EDIT +$0.90)>

 

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

  • Wednesday opened negative at 5/28, 1 flat and 1 acquired, stayed negative at the mid-day to 10/24, 3 flat and 1 acquired, closing positive at 25/8, 1 flat and 1 acquired;

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Sage Therapeutics (SAGE), Fate therapeutics (FATE), Intellia therapeutics (NTLA), Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) to name 5 of the 25 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), bluebird bio (BLUE), Ionis Pharmaceuticals (IONS), Cellectis SA (CLLS), Ultragenyx (RARE), Voyager Therapeutics (VYGR), Athersys (ATHX), Pluristem (PSTI) to name 8 of the 8 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 2 of the 25-upside having higher than the 3-month average volume with the volume of 1 of 8-downside having higher than the 3-month average volume;
  • Wednesday’s percentage (%) of the 25-upside were +0.11% (GBT) to +5.31% (VSTM) while the 8-downside ranges from -0.29% (RARE) to -4.29% (BLUE);

 

Wednesday’s (10 of 25) incliners

  • Sage Therapeutics (SAGE +$2.50 after Tuesday’s -$2.84);
  • Fate Therapeutics (FATE+$2.04 after Tuesday’s -$3.04 and Monday’s -$1.22);
  • Intellia Therapeutics (NTLA +$1.47 after Tuesday’s -$2.51 and Monday’s +$2.54);
  • Alnylam Pharmaceuticals (ALNY+$1.37 after Tuesday’s -$2.34 and Monday’s +$3.92);
  • Vericel (VCEL+$1.36 after Tuesday’s -$1.95);
  • uniQure NV (QURE +$1.46 after Tuesday’s +$0.43);
  • BioLife Solutions) BLFS +$1.04);
  • Editas Medicine (EDIT +$0.90 after Tuesday’s -$2.30 and Monday’s +$1.69);
  • Chinook Therapeutics (KDNY +$0.55 after Tuesday’s -$1.34 and Monday’s -$0.08);
  • CRISPR Therapeutics (CRSP +$0.53);

Wednesday’s (8 of 8) decliners:

  • ReNeuron (RENE.L -$3.00 after Tuesday’s +$9.00 and Monday’s +$1.00);
  • bluebird bio (BLUE -$1.39);
  • Ionis Pharmaceuticals (IONS -$0.95);
  • Cellectis SA (CLLS -$0.73);
  • Ultragenyx (RARE -$0.38);
  • Voyager Therapeutics (VYGR -$0.17);
  • Athersys (ATHX -$0.06);
  • Pluristem (PSTI -$0.03);

Closing Flat: 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML – acquired)

 

Sentiment and COVID-19 infections:

  • A year after the spread of Covid-19 led to business shutdowns, inflation has replaced the pandemic as investors’ biggest fear.

Infection cases <Million>: never to forget …

  • Wednesday 29.54 M cases,
  • Wednesday’s death rate totaled 536,925 <Johns Hopkins University>

 

Stats:

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

  • Wednesday, the IBB closed up +0.70% and XBI closed up +1.12%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was down -0.56 points or -2.83% at 19.23

Upside volume: low

  • Wednesday: 2 out of the 25-upside had higher than the 3-month average volume;

Downside volume: low

  • Wednesday: 1 out of the 8-downside had higher than the 3-month average volume;

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

  • Wednesday’s percentage (%) of the 25-upside were +0.11% (GBT) to +5.31% (VSTM) while the 8-downside ranges from -0.29% (RARE) to -4.29% (BLUE);

 

March, the 3rd month of Q1/21:

Wednesday closed positive with 25 advancers, 8 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: The Fed announcement accelerated an upside shift from the newest bottoms of “our” universe of cell and gene therapy stocks.

Although the Russell 2000 has rallied 18% this year so far as investors sold into strength in the sector.

What has changed - sustainability is the real issue in “this” market!

However, markets are scary, frightening investors – volatilities’ basis is pure speculation.

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

As to earnings’ season: “Again, “forewarned … earnings LPS (loss-per-share) season is upon us – my advice has been … 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.