January 18, 2022 5:04pm

Weak volume, IBB and XBI indexes, Nasdaq trading as traders prepared for the Fed to be more aggressive in tackling unabated inflation and inflation spooks markets

Pre-open Indication results: 4 HITs, 4 MISS

If I have learned one thing as a former research analyst, venture and public markets investor then a journalist; it is that your life and your bank account are largely tied to your questioning of price movements and targets.

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

Just the facts ... supported by real numbers!

The Dow closed DOWN -543.34 points (-1.51%); the S&P closed DOWN -85.74 points (-1.84%) while the Nasdaq closed DOWN -386.86 points (-2.60%)

 

Henry’omics:

Indexes fell sharply Tuesday as treasury yields posted strong gain (the 2-year yield broke above 1% for the first time since February 2020).

The Nasdaq sits more than 10% from its most recent high and closed below its 200-day moving average for the first time since April 2020.

An on-target quote, ““Recent economic data is further confirming the economy is indeed slowing due to omicron. Retail sales, consumer confidence, industrial production, and the Empire State manufacturing all told a similar story, our economy is slowing and worries are growing,” said Ryan Detrick of LPL Financial. “This isn’t the end of the world though, as we expect any near-term slowdown of output to simply be pushed back to further quarters once the omicron worries subside.”

 

RegMed Investors’ (RMi) pre-open: “one doesn’t profit from playing defense. The major indexes are closer to breaking down than breaking out; as I have stated, “it’s a short-term oriented sector especially pre-earning’s season” yet, BUYs and SELLs are opportunistic” … https://www.regmedinvestors.com/articles/12260

 

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

  • Tuesday opened negative at 4 up/29 downs, 1 flat and 1 acquired, stayed negative at the mid-day at 3/31 and 1 acquired, ending with a negative close of 2/31, 1 flat, and 1 acquired;
  • Monday was a holiday,
  • Friday opened negative at 6 up/26 downs, 2 flats and 1 acquired, stayed negative at the mid-day at 3/30, 1 flat and 1 acquired, ending with a positive close of 28/4, 2 flats and 1 acquired;

 

Pre-open indication results: 4 Hits <Intellia Therapeutics (NTLA -$5.57), BioLife Solutions (BLFS -$2.45), bluebird bio (BLUE -$0.82), Biostage (OTCQB: BSTG -$0.85)> 4 MISS <Global Blood therapeutics (GBT -$1.56), Fate Therapeutics (FATE -$2.66), Editas Medicine (EDIT -$2.14), CRISPR Therapeutics (CRSP -$2.72)>

 

The Biostage (BSTG) Chronicles: Question, WHY is the “pimp/pump and promote” in full swing with the shares depreciating -$0.00 with 8,288 shares trading after Friday’s -$0.32 after traveling +$0.16, +$0.19 -$0.08 -$0.10 to -$0.32 to $0.00 with 13,368 shares traded, Thursday’s +$0.02 with 700 shares traded to +$0.78 to +$0.93 to +$0.77 to +$0.28 with 31,551 shares traded <3-month average = 2,728 shares>, Wednesday’s 44,200 shares traded?

  • Just another example of a “House of Cards” – just a game of “fake it because they can’t make it? Overhang of non-registered PPM shares is also a factor beyond the terminal and wrongful death suit which their insurance company refused to cover or reimburse which hinders indemnification of a partner and management’s personal liabilities?

 

52-week lows experiences today:

  • IBB hit a 52-week low of 134.20
  • XBI hit a 52-week low of 95.56
  • bluebird bio (BLUE) hit a 52-week low of $8.06
  • Sangamo Therapeutics (SGM)) hit a 52-week low of $5.97
  • Cellectis SA (CLLS) hit a 52-week low of $6.95
  • Editas Medicine (EDIT) hit a 52-week low of $20.66
  • Verastem Oncology (VSTM) hit a 52-week low of $1.67

 

Key Metrics:

  • Tuesday - Sector volume was MODERATE with 2 of 2-upside having higher than the 3-month average volume with LOW volume of 12 of 31-downside having higher than the 3-month average volume;
  • Monday was a holiday,
  • Friday - Sector volume was MODERATE with 10 of the 28-upside having higher than the 3-month average volume with HIGH volume of 3 of 4-downside having higher than the 3-month average volume;

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

  • Tuesday the IBB closed down -3.95% and XBI closed down -5.94%
  • Monday was a holiday  
  • Friday the IBB closed up +0.65% and XBI closed up +2.44%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was up +3.60 points or +18.76% at 22.79
  • Monday was a holiday,
  • Friday was down -1.12 points or -5.51% at 19.19

 

Jumping with share pricing momentum (2 of 2):

  • Pluristem (PSTI -$0.21),
  • Solid Biosciences (SLDB +$0.08),

Hammered in today’s market (10 of 131):

  • ReNeuron (RENE.L -$34.00),
  • Alnylam Pharmaceuticals (ALNY -$9.31),
  • Intellia Therapeutics (NTLA -$5.57),
  • Ultragenyx (RARE -$4.38),
  • Ionis Pharmaceuticals (IONS -$2.96),
  • Sage Therapeutics (SAGE -$2.85),
  • CRISPR Therapeutics (CRSP -$2.72),
  • Fate Therapeutics (FATE -$2.66),
  • Editas medicine (EDIT -$2.14),
  • Regenxbio (RGNX -$1.61),

Closing:

  • 1 – Applied Genetic Technologies (AGTC)and 1- Stemline Therapeutics (STML) – acquired

 

January, Q1/2022:

  • Tuesday closed negative with 2 incliners, 31 decliners, 1 flat and 1 acquired
  • Monday (1/17) was a holiday

 

The BOTTOM LINE: another wipe-out and we weren’t even surfing

January has been a rough month for the cell and gene therapy sector, so far.

Trust, conviction is lacking as Q4 and end-of-year earnings are about to be made aware of.

As I have stated, “After being oversold, when will the overbought syndrome” materialized.

Algorithms, hedge funds and traders continue to punish the cell and gene therapy stocks as valuations “creeped” up.

  • Early January 2022 can deliver some gains but also generate algorithmic based losses.

Reiterating from last year, 2021, “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!”

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.