June 22, 2022 5:02pm
Investors should be worrying about the proximity of month and quarter’s end
As the Fed's aggressive plans to tighten monetary policy could lead the U.S. into a recession
Pre-open indications: 1 HIT- made profit in selling into strength
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 -47.12 points (-0.15%); the S&P closed DOWN -4.90 points (-0.13%) while the Nasdaq closed DOWN -16.22 points (-0.15%)
Henry’omics:
indexes fell slightly and are on pace for their second straight day of gains; they had gained more than 2% on Tuesday.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Tuesday.
Economic Data Docket: Powell began his semiannual report to the Senate banking, housing and urban affairs committee about 9:45 a.m. ET. Powell said the Fed is looking for "compelling evidence" that inflation is coming down before it halts its tightening strategy. It will make rate decisions "meeting by meeting," he added. <CNBC>
· Fresh inflation readings from South Africa to Great Britain and Canada indicated that central bank action, at least to date, has had little impact on consumer price pressures, while digging into the readings showed a broadening of their effects, particularly in the United Kingdom, where CPI hit a four-decade high of 9.1%. <TheStreet>
RegMed Investor’s (RMi) Pre-Open: “Expectation bucks into sustainability. Misses the biggest ingredient, volatility” … https://www.regmedinvestors.com/articles/12482
RegMed/Stem/Cell and Gene Therapy’s 35 covered equities’ Advance/Decline (A/D) lines: what happened …
- Wednesday opened positive at 23 up/ 11 downs and 1 flat, stayed positive at the mid-day to 27/5 and 3 flats, ending with a positive close of 27/7 and 1 flat.
Pre-open Indications: 1 HIT < Biostage (BSTG $0.00 with 0 shares traded);
Key Metrics:
- Wednesday - Sector volume was HIGHER with 17 of the 27-upside having higher than the 3-month average volume with HIGHER volume of 3 of 7-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 +1.23% and the XBI was up +2.51%
The CBOE Volatility Index (VVIX: INDEX) tracked:
- Wednesday was down -1.24 points or -4.11% at 28.95
Jumping with share pricing momentum (10 of 27):
- Alnylam Pharmaceuticals (ALNY +$2.54 after Tuesday’s +$1.93),
- Regenxbio (RGNX +$1.89 after Tuesday’s +$0.91),
- Fate Therapeutics (FATE +$11.38 after Tuesday’s +$1.19),
- Sage Therapeutics (SAGE +$1.32),
- Beam Therapeutics (BEAM +$1.08 after Tuesday’s +$2.28),
- Verve Therapeutics (VERV +$1.07),
- Intellia Therapeutics (NTLA +$1.06 after Tuesday’s +$1.50),
- Vericel (VCEL +$1.06),
- AxoGen (AXGN +$1.05),
BioLife Solutions (BLFS +$0.64),
Closing down (7 of 7):
- CRISPR Therapeutics (CRSP -$4.73 after Tuesday’s -$5.33),
- Voyager Therapeutics (VYGR -$0.34),
- Chinook therapeutics (KDNY -$0.25),
- Ionis Pharmaceuticals (IONS -$0.17),
- Brainstorm Cell Therapeutics (BCLI -$0.04),
- Mesoblast (MESO -$0.04 after Tuesday’s -$0.01),
Closing Flat:
- Biostage (BSTG)
June, Q2/2022:
- Wednesday closed positive with 27 incliner, 7 decliners and 1 flat
- Tuesday closed positive with 26 incliner, 7 decliners and 2 flats
- Monday was market holiday
The BOTTOM LINE: Be thankful, the cell and gene therapy remained up on Wednesday with three (3) positive sessions.
So, while we had a rally today, I am looking at the volatility index that is down just slightly, it is not really buying this. There is still quite a bit of nervousness around the markets.
Up, down, back and forth … it’s a CONSTANT tug-of-war of share pricing!
Investors should watch of the bounces and question what will be sustainable.
We always need a villain – Inflation affects the market and conversely the sector with downslides has remained a dominant issue for investors.
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.
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.
