June 3, 2021 6:05pm

Pre-open indications: 6 HITs and 2 MISS

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The Dow closed DOWN -23.34 points (-0.07%); the S&P closed DOWN -15.27 points (-0.36%) while the Nasdaq closed DOWN -141.82 points (-1.03%)

 

Henry’omics:

June is historically a weak month for stocks, but Instinet points out that the S&P 500 has had a better track record recently, gaining every June since 2016.

Another bad session in the cell and gene therapy sector …

  • Thursday, a hole sprung in the dike of sector share pricing, with a negative advance/decline line of 10/22, 2 flats and 1 acquired in the cell and gene therapy sector closing seriously negative;
  • Wednesday, a stake was driven into the heart of the sector with a negative advance/decline line of 10/23 with the sector closing seriously downward;
  • Tuesday opened positive at 18/15, 1 flat and 1 acquired, strayed neutral by the mid-day to 16/16, 2 flats and 1 acquired, closing positive at 17/16, 1 flat and 1 acquired.
  • Monday was a market holiday

Reiterating the view of the month of May, last week, there were 3 negative sector closes of five sessions (beginning 5/24) after the previous week’s) beginning 5/17) two negative closes of five sessions following the mid-month (5/10) four negative closes of five sessions as Monday began the month (5/3) with a negative close. Not a good track record as the sector barely closed positive on the first day, Tuesday and closed negative in the second session of June.

 

Data Docket: ADP jobless claims broke the 400k barrier—a pandemic low, with eyes on the larger jobs picture tomorrow.

  • The market may be on hold before the release of the jobs report Friday, which is likely to show an additional 671,000 nonfarm payrolls in May, according to economists. The economy added 266,000 jobs in April.

 

RegMed Investors’ (RMi) pre-open: “the cell and gene therapy sector need to elevate its visibility” … https://www.regmedinvestors.com/articles/11939

 

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

  • Thursday opened negative at 13/28, 13 flats and 1 acquired, stayed negative by the mid-day to 10/22, 2 flats and 1 acquired, closing negative at 7/26, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump and promote” is NOT working as 3528 shares are traded with no pricing advantage after Wednesday’s flat at $1.11 with 5,673 shares were traded and the stock was down -$0.11 to $1.11; WHO is buying this “zombie”?

 

Pre-open Indications: 6 HITs < Biostage (BSTG -$0.00), bluebird bio -$0.44); Mesoblast (MESO -$0.45), ReNeuron (RENE.L +$1.50), Verastem (VSTM -$0.01), Applied Genetic Technologies (AGTC $0.06) and 2 MISS <Editas Medicine (EDIT -$1.68), Fate Therapeutics (FATE -$1.69)>

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … MESO added: https://www.regmedinvestors.com/articles/11628

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Alnylam Pharmaceuticals (ALNY), ReNeuron (RENE.L), uniQure NV (QURE), Global Blood therapeutics (GBT), Chinook Therapeutics (KDNY) to name 5 of the 8 inclining of the 35 covered

Hammered in today’s market:

  • CRISPR Therapeutics (CRSP) - another again, Ultragenyx (RARE) – another again, Fate Therapeutics (FATE) – another again, Editas Medicine (EDIT), Sage Therapeutics (SAGE) - again, to name 5 of the 26 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 1 of the 8-upside having higher than the 3-month average volume with the volume of 1 of 26-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 7-upside were +0.27% (SLDB) to +3.50% (QURE) while the 27-downside ranges from -0.25% (VSTM) to -5.97% (MESO);

 

Thursday’s (7 of 7) incliners:

  • Alnylam Pharmaceuticals (ALNY +$4.44 after Wednesday’s -$1.43 and Tuesday’s +$2.29);
  • ReNeuron (REN.L +$2.40 after Wednesday’s +$2.50 and Tuesday’s flat;
  • uniQure NV (QURE +$1.18 after Wednesday’s -$0.87 and Tuesday’s -$0.17);
  • Global Blood Therapeutics (GBT +$0.70 after Wednesday’s +$0.19 and Tuesday’s -$1.23);
  • Chinook Therapeutics (KDNY +0.15);
  • Homology Medicine (FIXX +$0.02);
  • Solid Biosciences (SLDB +$0.01);

Thursday’s (10 of 27) decliners:

  • CRISPR Therapeutics (CRSP -$4.91 after Wednesday’s -$1.06 and Tuesday’s -$2.38);
  • Ultragenyx (RARE -$3.33 after Wednesday’s -$2.13 and Tuesday’s -$1.88);
  • Fate Therapeutics (FATE -$1.69 after Wednesday’s -$3.52 and Tuesday’s -$4.14);
  • Editas Medicine (EDIT -$1.68 after Wednesday’s +$0.82 and Tuesday’s +$0.27);
  • Sage Therapeutics (SAGE -$1.52 after Wednesday’s -$1.89 and Tuesday’s +$0.37);
  • Intellia Therapeutics (NTLA -$1.27 after Wednesday’s -$0.95 and Tuesday’s -$1.21);
  • Ionis Pharmaceuticals (IONS -$0.96 after Wednesday’s -$1.06 and Tuesday’s -$0.51);
  • Cellectis SA (CLLS -$0.84 after Wednesday’s -$1.15 after Tuesday’s +$0.68);
  • Vericel (VCEL -$0.74 after Wednesday’s -$1.03);

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

 

COVID-19 updates:

  • Twelve U.S. states now have 70% of adult residents with at least one Covid vaccine shot.

Wednesday’s COVID Data Tracker <Million>:

  • Cases: 34.167 m
  • Death rate totaled 611,496
  • 63% of the U.S. population has received one dose or more.

 

Stats:

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

  • Thursday, the IBB closed down -0.13% and XBI closed down -0.38%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was up +0.56 points or +3.20% at 18.04

Upside volume: low

  • Thursday: 1 out of the 18-upside had higher than the 3-month average volume;

Downside volume: low

  • Thursday: 1 out of the 27-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: LOW % with limited pricing drops as upside maintains

  • Thursday’s percentage (%) of the 7-upside were +0.27% (SLDB) to +3.50% (QURE) while the 27-downside ranges from -0.25% (VSTM) to -5.97% (MESO);

 

 

June, third month of Q2/21:

Thursday closed negative with 7 advancers, 26 decliners, 1 flat and 1 acquired

Wednesday closed negative with 10 advancers, 23 decliners, 1 flat and 1 acquired

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

 

The BOTTOM LINE: What changes, it might just pay to read … I haven’t been wrong, as I had stated “Expect the sector rotation trades to continue to play out.”

Q1 earnings season is wrapping up and my reaction to earnings LPS (loss-per-share) results reveals more than some skepticism that Q1 losses provide a reason for additional forward-looking less than optimistic and more pessimism through the mid-year.”

I’m STILL a “beware or the cautious man” whose focus has always been “warning analysis” … earnings’ season is NOT over … my advice, trim and skim any new highs if one can!”

My time frame of measurement remains Friday to Friday and has been proved right again, don’t get complacent …

 

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.