June 8, 2021 6:10pm

Sector recovers as the mid-day unfolds to close positive

Pre-open indications: 7 HITs and 1 MISS

News: Chinook Therapeutics (KDNY) presented data from the ongoing P1/2 study of BION-1301 in patients with IgAN. The findings were presented in an oral presentation at the 58th European Renal Association – European Dialysis and Transplant Association (ERA-EDTA) Virtual Congress.

My comments try to distinguish the temporary from real pricing digression or progress.

If you’re looking for sector intel, ideas and facts or numbers (which don’t lie) in a volatile climate, RMi defines the rigors of share pricing! My comments distinguish the temporary from real pricing digression or progress.

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The Dow closed DOWN -30.42 points (-0.09%); the S&P closed UP +0.74 points (+0.02%) while the Nasdaq closed UP +43.19 points (+0.31%)

 

Henry’omics:

Indexes returned to a positive state of being after facing negative selling into strength … get close to all-time highs.

 

RegMed Investors’ (RMi) pre-open: “I question sustainability and stability of sector share pricing. The timing of new record highs usually tells me to say BYE, even if I am early” … https://www.regmedinvestors.com/articles/11945

 

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

  • Tuesday opened positive at 29/5, 1 flat and 1 acquired, strayed negative at the mid-day to 12/22 and 1 acquired, closing positive at 25/9 and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump and promote” is BACK

  • As 1,216 shares traded i.e., were “pumped” as the stock increased +0.13 to $1.26 after Monday’s 2,350 shares traded dropping the stock -$0.17 to $1.13 after Friday’s as 800 shares traded pumping the stock +$0.19 to $1.30, Thursday’s 3528 shares 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: 7 HITs < Sell into Strength and Profit: Athersys (ATHX -$0.02), Editas Medicine (EDIT +$0.48), Ionis Pharmaceuticals (IONS +$1.02), CRISPR Therapeutics (CRSP -$0.29), Homology Medicine (FIXX -$0.07), Global Blood Therapeutics (GBT +$1.08), Applied Genetic Technologies (AGTC +$0.01)> and 1 MISS < Biostage (BSTG +$0.13)>  

 

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:

  • Sage Therapeutics (SAGE), Fate Therapeutics (FATE), Intellia therapeutics (NTLA), Global Blood Therapeutics (GBT) Ionis Pharmaceuticals (IONS), to name 5 of the 25 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), Ultragenyx (RARE), MiMedx (MDXG) CRISPR Therapeutics (CRSP), Cellectis SA (CLLS), to name 5 of the 9 inclining of the 35 covered

 

Key metrics:

  • Sector volume was WEAK with 7 of the 25-upside having higher than the 3-month average volume with the volume of 2 of 9-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 25-upside were +0.24% (AGTC) to +11.50% (BSTG) while the 9-downside ranges from -0.24% (CRSP) to -4.57% (BCLI);

 

Tuesday’s (10 of 25) incliners:

  • Sage Therapeutics (SAGE +$4.29 after Monday’s +$2.86);
  • Fate Therapeutics (FATE +$2.23 after Monday’s +$4.21);
  • Intellia Therapeutics (NTLA +$1.32 after Monday’s +$5.42);
  • Global Blood Therapeutics (GBT +$1.08);
  • Ionis Pharmaceuticals (IONS +$1.02);
  • Chinook Therapeutics (KDNY +$0.91);
  • bluebird bio (BLUE +$0.83);
  • Alnylam Pharmaceuticals (ALNY +$0.62 after Monday’s +$4.86);
  • AxoGen (AXGN +$0.540;
  • Mesoblast (MESO +$0.54 after Monday’s -$0.15);

Tuesday’s (9 of 9) decliners:

  • ReNeuron (REN.L -$2.50 after Monday’s -$1.50);
  • Ultragenyx (RARE -$2.04 after Monday’s +$3.30);
  • MiMedx (MDXG -$0.38);
  • CRISPR Therapeutics (CRSP -$0.29 after Monday’s +$5.91);
  • Cellectis SA (CLLS -$0.22);
  • uniQure NV (QURE -$0.22 after Monday’s +$1.85);
  • Brainstorm Cell Therapeutics (BCLI -$0.18);
  • Vericel (VCEL +$2.65 after Friday’s +$0.98);
  • Verastem VSTM -$0.08);

Closing 1 -Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

More than half of Americans have received at least one dose of a vaccine and 42% are fully vaccinated.

Friday’s COVID Data Tracker <Million>:

  • Cases: 34,228 M
  • Death rate totaled 612,819
  • Recovered/Discharged 28,179,545

 

Stats:

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

  • Tuesday, the IBB closed down -0.13% and XBI closed up +0.64%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +0.65 points or +3.96% at 17.07

Upside volume: weak

  • Tuesday: 7 out of the 25-upside had higher than the 3-month average volume;

Downside volume: low

  • Tuesday: 2 out of the 9-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: price versus percentage …

  • Tuesday’s percentage (%) of the 25-upside were +0.24% (AGTC) to +11.50% (BSTG) while the 9-downside ranges from -0.24% (CRSP) to -4.57% (BCLI);

 

June, third month of Q2/21:

Tuesday closed positive with 25 advancers, 9 decliners and 1 acquired

Monday closed positive with 30 advancers, 4 decliners and 1 acquired

 

The BOTTOM LINE: Volatility eased after I mentioned, “I question sustainability and stability of sector share pricing. The timing of new record highs usually tells me to say BYE, even if I am early.”

Expect the sector rotation trades to continue to play out. – I’m maintaining SELLING into STRENGTH on Wednesday.

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.