May 29, 2024 4:44pm

The IBB and XBI dived as the VIX (fear indicator) explodes +9.84%

Anyone who reads my posts, knows that I am about making money in a portfolio, no matter what happens in the sector

Never leave an investor uninformed!

The sector is being driven by the same theme - until we get some optimism, the path of least resistance is lower.

 

Wednesday: The Dow closed DOWN -411.32 points or -1.06%, the S&P closed DOWN -39.09 points or -0.74% while the Nasdaq closed DOWN -99.30 points or -0.58%

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes slipped Wednesday as mounting pressure from rising Treasury yields; as the 10-year Treasury note yield ticked higher for a second day, last trading above 4.6% following a Treasury Department auction on Tuesday that was met with weak demand.

All 11 sectors that comprise the broad S&P 500 retreated, underscoring the breadth of market weakness. <CNBC>

 

All-time Low:

  • Caribou Biosciences (CRBU) at $2.91
  • Verve Therapeutics (VERV) at $5.07
  • Sage Therapeutics (SAGE) at $10.80

 

Advance/Decline (A/D) Line:

  • Wednesday’s advance/decline line at the open was negative with 1 incliner, 31 decliners and 3 flats; ending with a negative close of 5 incliners, 27 decliners and 3 flats
  • Tuesday’s advance/decline line at the open was neutral with 16 incliner, 16 decliners and 3 flats; ending with a negative close of 15 incliners, 16 decliners and 4 flats
  • Monday was a market holiday.

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

Q2/24: 1 holiday, 9 positive and 11 negative closes

  • April; 16 negative and 6 positive closes

 

Key Metrics:

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

  • Wednesday, the IBB was down -1.17% and the XBI was down -1.85%
  • Tuesday, the IBB was down -1.17% and the XBI was up +0.34%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Wednesday was up +1.27 point or +9.84% at 14.19
  • Tuesday was up +0.53 point or +4.29% at 12.89

 

Wednesday’s Closing Down (10 of 27):

  • Alnylam Pharmaceuticals (ALNY -$3.13 after Tuesday’s +$2.30),
  • Blueprint Medicine (BPMC -$1.79 after Tuesday’s -$0.45),
  • Vericel (VCEL -$1.23 after Tuesday’s -$0.26),
  • Ultragenyx Pharmaceuticals (RARE -$1.20 after Tuesday’s -$1.00),
  • Ionis Pharmaceuticals (IONS -$1.19 after Tuesday’s +$0.36),
  • Sage Therapeutics (SAGE -$1.07 after Tuesday’s +$0.15),
  • Intellia Therapeutics (NTLA -$1.05 after Tuesday’s -$2.12),
  • CRISPR Therapeutics (CRSP -$0.99 after Tuesday’s -$0.40),
  • Regenxbio (RGNX -$0.85 after Tuesday’s +$0.04),
  • Beam Therapeutics (BEAM -$0.54),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX)

Wednesday’s Closing Up (5 of 5):

  • Adverum Biotechnologies (ADVM +$0.36 after Tuesday’s +$0.06),
  • Lenz Therapeutics (LENZ +$0.10 after Tuesday’s -$0.31),
  • AxoGen (AXGN +$0.07 after Tuesday’s +$0.37),
  • Prime Medicine (PRME +$0.04 after Tuesday’s -$0.43),
  • Brainstorm Cell Therapeutics (BCLI +$0.0121),

 

Q2/24 – May

  • Wednesday closed negative with 5 incliners, 27 decliners and 3 flats
  • Tuesday closed negative with 15 incliners, 16 decliners and 4 flats
  • (5/27) Monday was a market holiday

 

The BOTTOM LINE:  The cell and gene therapy sector was mired in negativity, even algorithms and electronic traders didn’t respond.

  • Fading optimism pervades with a busy week for me (after a busy weekend of yard and garden work) more of yard work, the pool open and prep, winterizing the extended porch will keep my writing to a minimum but still hit the highs and lows.

“Today is really all about interest rates,” said Adam Turnquist, chief technical strategist at LPL Financial, adding that the 10-year and 2-year yields have touched “uncomfortable levels.” “That all is creating some angst among investors. While there has been a choppy start to the shortened week, the major averages are on track to close the month with notable gains.” <CNBC>

 

The top three (3) performing in the session:  

  • Wednesday: Adverum Biotechnologies (ADVM), Lenz Therapeutics (LENZ) and AxoGen (AXGN)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Agenus (AGEN) and BioLife Solutions (BLFS)
  • Monday:  was a holiday

The worst three (3) in the session:

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BLMC) and Vericel (VCEL)
  • Tuesday: Intellia Therapeutics (NTLA), Ultragenyx Pharmaceuticals (RARE) and Blueprint Medicine (BLMC)
  • Monday: was a market holiday

Welcome to my world of defining the “grey’ in our universe!

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

 

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.