June 8, 2022 4:43pm
As I wrote this a.m., “the market giveth, palms it or takes it away just as fast”
More investors should read as I DEVOTE a HUGE amount of time to “reckoning” the geography of my coverage group
Pre-open indications: 7 HITs and 4 MISS
WHY and HOW is this market affecting the cell and gene therapy sector … “The Bottom Line” underlines the framework of share pricing actions. Who else is tracking a broad grouping of cell and gene therapy equities – can you afford to not read facts supported by real numbers?
It’s a quick read to understand the ebb and flow of the session in one site
If I have learned one thing as a former research analyst, venture and public fund investor now a journalist; it is that your life and your bank account are largely tied to your knowledge of price movements and questioning pricing targets.
The Dow closed DOWN -269.96 points (-0.81%); the S&P closed DOWN -44.93 points (-1.08%) while the Nasdaq closed DOWN -88.96 points (-0.73%)
Indexes fell on Wednesday as the bond market jumped further initiating signs of an economic slowdown.
Economic Data Docket: The number of mortgage applications tumbled 6.5% last week to its lowest level in 22 years, well below the 2.3% decline that economists had expected. Refinance applications fell 5.6% and home purchase applications fell 7.1%, according to the Mortgage Bankers' Association.
A hot reading on inflation would likely spook markets already worried about how the Fed will balance growth and inflation as it withdraws its pandemic-era policy support to the economy. <Reuters>
RegMed Investors’ (RMi) pre-open: “the market giveth, palms it or takes it away just as fast” … https://www.regmedinvestors.com/articles/12464
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Wednesday opened positive at 27 up/7 downs and 1 flat, stayed positive at the mid-day to 20/12 and 3 flats, ending with a positive close of 22/10 and 3 flats.
Pre-open Indications: 7 HITs < Biostage (BSTG $0.00 with 2 shares traded), Regenxbio (RGNX -$0.57), MiMedx (MDXG -$0.10), Alnylam Pharmaceuticals (ALNY +$5.39), Caribou Biosciences (CRBU +$0.15); Sell into Strength: bluebird bio (BLUE +$0.12), Verve Therapeutics (VERV +$0.28)> 4 MISS < Beam Therapeutics (BEAM +$1.66), Chinook Therapeutics (KDNY +$0.44), Editas Medicine (EDIT +$0.38), Mesoblast (MESO -$0.12)>
Key Metrics: review the disparities between daily sessions …
- Wednesday - Sector volume was MODERATE with 10 of the 22-upside having higher than the 3-month average volume with LOW volume of 2 of 10-downside having higher than the 3-month average volume;
The iShares NASDAQ Biotechnology (IBB) and the SPDR S&P ETF (XBI) indicators:
- Wednesday, the IBB was up +0.25% and the XBI was up +0.81%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was up +0.02 points or +0.08% at 24.04
Jumping with share pricing momentum (10 of 22):
- Alnylam Pharmaceuticals (ALNY +$5.39 after Tuesday’s +$2.38 and Monday’s +$0.11),
- CRISPR Therapeutics (CRSP +$4.79 after Tuesday’s +$4.82 and Monday’s +$0.01),
- Intellia therapeutics (NTLA +$3.90 after Tuesday’s +$2.91),
- Beam Therapeutics (BEAM +$1.66 after Tuesday’s +$2.63 and Monday’s -$1.39),
- Ultragenyx (RARE +$1.16 after Tuesday’s +$3.97 and Monday’s -$2.15),
- Sage Therapeutics (SAGE +$0.66 after Tuesday’s -$0.01),
- Chinook therapeutics (KDNY +$0.44),
- Editas Medicine (EDIT +$0.38),
- Verve Therapeutics (VERV +$0.28 after Tuesday’s +$1.18)
- Sangamo Therapeutics (SGMO +$0.25),
Closing down (10 of 10):
- Regenxbio (RGNX -$0.57 after Tuesday’s +$1.20 and Monday’s -$0.81),
- BioLife Solutions (BLFS -$0.28),
- uniQure NV (QURE -$0.22 after Tuesday’s +$1.53),
- Mesoblast (MESO -$0.12),
- MiMedx (MDXG -$0.10),
- Global Blood Therapeutics (GBT -$0.08),
- Vericel (VCEL -$0.07),
- Fate Therapeutics (FATE -$0.03 after Tuesday’s +$2.29 and Monday’s -$1.65),
- Ionis Pharmaceuticals (IONS -$0.03 after Tuesday’s +$1.01 and Monday’s -$2.13),
- Voyager Therapeutics (VYGR -$0.02),
- AVROBIO (AVRO), Homology Medicine (FIXX) and Biostage (BSTG)
- Wednesday closed positive with 22 incliner, 10 decliners and 3 flats
The BOTTOM LINE: Another altitude reaching session; it had seemed hard in this continuum to have consecutive days of strength with an algorithm withdrawal!
I try to keep it simple and short … because there’s so much worry that people use any piece of good news as a chance to sell – it has become a process of developing ROI (return of investment).”
Reiterating, I believe there will be opportunity in cell and gene therapy equities but, the summer doldrums are still a roadblock. This period of volatility will likely last into the second half of the year.
At this time in June, as consecutive upside sessions are ominous as dramatic upsides initiate downslides opening the door to electronic trading appetites!
What changes … it’s a tug-of-war!
Again, as have I written (repeatedly), “There's a battle in the cell and gene therapy sector between which or what breaks first: share pricing resilience or tumbling into yet another downturn as fear remains beneath the strength of any positive close” …
I am not always right but, more than frequently not wrong … I just DO NOT trust this market … too much fear and panic. This continuing state of volatility confirms fears that I have been expressing in these daily and weekly posts.
Reiterating, “I continue to expose the feeling … “like Sisyphus … eternally to repeatedly roll a heavy rock up a hill … only to have it roll down again as it nears the top … as I watch the roller-coaster go round.
· Reiterating, “Sisyphus teaches us to never give in to circumstantial disappointments or try to escape from the failures, rather accept failures the same way we accept our achievements. And most importantly, no matter how much we lose in our quest, we must never back down till we fulfill our potential.”
However, the continuing state of volatility confirms fears that I have been expressing these daily and weekly posts.
I stick to my view of anticipating the risks – as my careers focus has been “warning analysis”.
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.