December 15, 2021 5:04pm
From one session extreme to another, check the advance/decline lines
Pre-open indication results: 5 HITs, 3 MISS
Who else is tracking a broad representative of cell and gene therapy equities – with facts supported by real numbers?
If I have learned one thing as a former research analyst, venture and public markets investor to a journalist; it is that your life and your bank account are largely tied to your questioning of price movements and targets.
The Dow closed UP +383.25 points (+1.08%); the S&P closed UP +75.76 points (+1.63%) while the Nasdaq closed +327.94 points (+215%)
Indexes cut their losses and moved higher on Wednesday after the Fed signaled a more aggressive unwinding of its monthly bond buying, as expected by the market, and forecast multiple rate hikes on the way next year.
This was a surprise divergence from the Fed's prior plans. On Nov. 3, the Fed announced it would gradually taper asset purchases from the $120 billion monthly pace.
- All three (3) indexes were in negative territory for the day before the central bank’s decision.
Economic data Docket: Retail sales for November came in worse than expected, rising 0.3% month-over-month. Economists surveyed by Dow Jones were looking for a 0.8% month.
The Fed quickened the pace of its tapering as asset purchases will now decrease by $30 billion per month and likely come to an end in March.
- Clearing the way for a first interest rate hike next year
RegMed/Stem/Cell and Gene therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what’s happening …
- Wednesday opened negative at 9 ups/24 downs, 1 flat and 1 acquired, flipped positive at the mid-day at 21/12, 1 flat and 1 acquired, ending with a positive close of 27 up/6 downs, 1 flat and 1 acquired;
RegMed Investors’ (RMi) pre-open: “a bounce after an upcoming Fed decision? The cell and gene therapy sector’s advance/decline lines continue to deteriorate, reflecting an ongoing bear market for many if not most sector stocks. New lows crushed new highs Tuesday.” … https://www.regmedinvestors.com/articles/12227
Pre-open indication results: 5 HITs: < Biostage (OTCQB: BSTG), Fate Therapeutics (FATE +$4.50), Mesoblast (MESO +$0.80), Global Blood Therapeutics (GBT) +$3.30), Editas Medicine (EDIT +$1.32) and 3 MISS: <Ionis Pharmaceuticals (IONS +$0.86), CRISPR Therapeutics (CRSP +$4.28), Intellia Therapeutics (NTLA +$7.03)>
Key Metric - volume
Sector volume INCREASED with 12 of the 27-upside having higher than the 3-month average volume with INCREASED volume of 5 of 6-downside having higher than the 3-month average volume;
Note: Biostage (BSTG) closed flat with 3,281 shares traded after Tuesday’s flat with 500 shares traded after Monday’s 0 shares traded; WHEN will David Green, the new interim CEO and chairman STOP the “pump and promote”?
New 52-week lows:
- Sangamo Therapeutics (SGMO) at $7.07
- Homology Medicine (FIXX) at $4.24
- Pluristem (PSTI) at $2.05
Jumping with share pricing momentum (10 of 27):
- Intellia Therapeutics (NTLA +$7.03 after Tuesday’s +$1.02),
- Alnylam Pharmaceuticals (ALNY +$5.33 after Tuesday’s -$0.69 and Monday’s +$12.77),
- Fate Therapeutics (FATE +$4.50 after Tuesday’s +$1.19 and Monday’s -$0.18),
- CRISPR Therapeutics (CRSP +$4.28 after Tuesday’s +$1.59 and Monday’s -$0.63),
- Global Blood Therapeutics (GBT +$3.30 after Tuesday’s -$4.16 and Monday’s +$1.47),
- BioLife Solutions (BLFS +$1.62 after Tuesday’s -$1.49),
- Editas Medicine (EDIT +$1.32 after Tuesday’s -$0.64 and Monday’s +$0.25),
- Ultragenyx (RARE +$1.30 after Tuesday’s +$2.12 and Monday’s +$1.73),
- Vericel (VCEL +$1.15 after Tuesday’s -$1.05 and Monday’s -$1.07),
- Sage therapeutics (SAGE+$0.94),
Hammered in today’s market (6 of 6):
- ReNeuron (RENE.L -$4.00 after Tuesday’s -$5.50 and Monday’s -$1.50),
- Homology Medicine (FIXX -$0.10),
- AxoGen (AXGN -$0.05),
- MiMedx (MDXG -$0.05),
- Pluristem (PSTI -$0.03),
- Caladrius Biosciences (CLBS -$0.0209),
- 1 – Biostage (BSTG) and 1 - Stemline Therapeutics (STML) – acquired
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB closed up +2.21% and XBI closed up +4.25%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -2.60 points or -11.88% at 19.29
December, the second month of Q4/21:
Wednesday closed positive with 27 incliners, 6 decliners 1 flat and 1 acquired
Tuesday closed negative with 7 incliners, 27 decliners and 1 acquired
Monday (12/13) closed positive with 16 incliner, 15 decliners, 3 flats and 1 acquired
The BOTTOM LINE: Sector stocks sold off Tuesday, came back to the upside Wednesday after the Fed announcing it will speed up the taper of its asset-purchase program while the S&P 500 was up, the Dow was higher and the Nasdaq gained.
Volume was higher in the sector versus Tuesday.
Despite gains for the sector last week, direction is still unclear. But historically, December has been a strong month for the stock market.
In any case, I have continued to write … don’t ramp exposure at the current levels.
Reiterating, “the stem, cell and gene therapy sector is still seen as vulnerable to extreme low volume moves in either direction, as share pricing risk stimulates their 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.