October 5, 2021 5:24pm

As small caps lagged the other indexes, with the Russell 2000 rising just +0.3%.

Pre-open indication results: 5 Hits and 1 MISS

Who else is tracking a broad representative index of cell and gene therapy equities – the facts are supported by real numbers?

My version of the morning’s “indications” is about what you need to know; it’s what could happen or materialize after the opening and what might happen during the session

A legitimate fact-based narrative ...

The Dow closed UP +311.75 points (+0.92%); the S&P closed UP +45.25 points (+1.05%) while the Nasdaq closed UP +178.25 points (+1.25%)

 

Henry’omics:

Indexes rebounded on Tuesday following a market rout in the previous session.

Yesterday, the sell-off was in part driven by a rise in 10-year government bond yields, higher inflation, and weaker growth.

In Washington, lawmakers are still trying to agree to raise or suspend the U.S. borrowing limit and avert a dangerous first-ever default on the national debt. <CNBC>

 

Economic Data Docket: Helping sentiment around the recovery, September Institute for Supply Management services PMI rose to 61.9 from 61.7 in August, 2 points better than expected.

 

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

  • Tuesday opened positive at 24/9 and 1 acquired, flipped negative at the mid-day at 20/13, 1 flat and 1 acquired, at 2:30 p.m. turned the advance/decline line positive to 17/16, 1 flat and 1 acquired, ending barely positive close of 17/16, 1 flat and 1 acquired;
  • Monday opened negative at 4/27, 3 flats and 1 acquired, stayed negative at the mid-day at 6/27, 1 flat and 1 acquired, ending with a negative close of 5/28, 1 flat and 1 acquired;

 

RegMed Investors’ (RMi) pre-open: “mini bounce after two (2) October trounces. There’s still risk lurking but, selectively beat the electronic traders to the bid” … https://www.regmedinvestors.com/articles/12124

 

Pre-open indication results: 5 Hits: <Biostage (BSTG -$0.59), Cellectis SA (CLLS +$0.31), CRISPR Therapeutics (CRSP +$0.06), Editas Medicine (EDIT +$0.94), Fate Therapeutics (FATE +$0.89)> and 1 MISS < Global Blood Therapeutics (GBT -$0.31),

 

Key Metric - volume:

  • Sector volume was LOW with x of the x-upside having higher than the 3-month average volume with INCREASED volume of x of x-downside having higher than the 3-month average volume;

Largest downside volume:

  • Adverum Biotechnologies (ADVM -$0.19 with 7.54M shares traded),
  • Regenxbio (RGNX -$1.43 with 675,399 shares traded),
  • Homology Medicine (FIXX -$0.38 with 1.062 M shares traded

 

The Biostage (BSTG) Chronicles: “For years, U.S. regulators said they never got the transparency they needed into the auditing on Chinese companies because ...  https://www.regmedinvestors.com/articles/12110

  • The “pump/promote” is NOT working…

Tuesday closed down -$0.59 with 957 shares traded following Monday closed up +$0.58 with 2,189 shares traded following an a.m. dive of -$0.46 with 2,018 shares traded.

 

There are clear winners and losers

Hammered in today's sector: (10 of 16):

  • Regenxbio (RGNX -$1.43 after Monday’s -$7.95)
  • Biostage (BSTG -$0.59 after Monday’s +$0.58 - “pumped”),
  • Chinook Therapeutics (KDNY -$0.51),
  • BioLife Solutions (BLFS -$0.42 after Monday’s -$2.02)
  • Homology Medicine (FIXX -$0.38),
  • Global Blood Therapeutics (GBT -$0.31),
  • Adverum Biotechnologies (ADVM -$0.24 after Monday’s +$0.22),
  • bluebird bio (BLUE -$0.17),
  • Mesoblast (MESO -$0.16),
  • Voyager therapeutics (VYGR -$0.09),

Jumping with share pricing momentum (10 of 17):

  • Alnylam Pharmaceuticals (ALNY +$3.33 after Monday’s +$2.34)
  • Intellia Therapeutics (NTLA +$2.98 after Monday’s -$7.28),
  • Ultragenyx (RARE +$2.14 after Monday’s -$2.82),
  • Vericel (VCEL +$1.85 after Monday’s -$1.34)
  • Editas Medicine (EDIT +$0.94 after Monday’s -$2.62)
  • Fate Therapeutics (FATE +$0.89 after Monday’s -$3.09)
  • Sage Therapeutics (SAGE +$0.67),
  • Ionis Pharmaceuticals (IONS +$0.46 after Monday’s -$1.24),
  • AxoGen (AXGN +$0.37 after Monday’s -$1.03),
  • Cellectis SA (CLLS +$0.31),

Closing Flat:

  • 1 – ReNeuron (RENE.L) and 1 - Stemline Therapeutics (STML) – acquired

 

Stats:

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

  • Tuesday the IBB closed up +0.07% and XBI closed up +0.31%
  • Monday, the IBB closed down -2.04% and XBI closed down -2.95%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -1.66 points or -7.23% at 21.30
  • Monday was up +1.81 points or +8.56% at 22.96

 

October, the first month of Q3/21:

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

Monday (10/4) closed negative with 5 advancers, 28 decliners, 1 flat and 1 acquired

Friday (10/1) closed negative with 4 advancers, 28 decliners, 2 flats and 1 acquired

 

The BOTTOM LINE: What hasn’t changed … volatility with low volume?

We are here … the first full week of October, the month for some of history's most infamous market routs. Let’s not forget Q3 results are being prepared.

 Some bought the dip; the upside saw +4% while the downside experienced a further dip of -0.31% to 7.7% with one as high as -16.25% - Biostage (BSTG).

As I have been stating,” investors were still mulling implications on-going Washington, D.C. political antics, inflation worries, bond yields, infrastructure arguments, questions of drug pricing and patterns while military patterns of behavior re the debacle of the Afghanistan withdrawal i.e., surrender “bites” and hard!”

Sentiment has been capricious and languishing as the sector bounded to the upside from the downside.

The stem, cell and gene therapy sector is still seen as vulnerable to extreme moves in either direction, overbought and oversold categories as risk stimulates the susceptibility!

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!”

WHY do I keep analyzing Biostage (BSTG): When one sees an inextricable wrong and morally repulsive scenario; it takes courage, resolve and patience to stay the course of asking the questions without response!

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 – it’s more than opinion, I deal in the facts and numbers that back them up.

 

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.

Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.