June 11, 2021 6:27pm

The week in review

Pre-open indications: 5 HITs and 3 MISS

My comments try to distinguish the temporary from real pricing digression or progress.

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The Dow closed UP +13.36 points (+0.04%); the S&P closed UP +8.26 points (+0.19%) while the Nasdaq closed UP +49.09 points (+0.35%)

 

Henry’omics:

Indexes rose slightly to wrap up the week with -expected increases in price pressures.

As a not-so-distant sector ‘family” member dived, “Shares of Vertex Pharmaceuticals (VRTX tumbled -$22.36 or -10.46%, enough to pace the S&P 500's SPX, 0.05% early decliners, after VRTX released what was seen as disappointing data on its treatment for people with alpha-1 antitrypsin deficiency (AATD), which can lead to liver and lung disease. The stock was on track to open at the lowest price seen during regular-session hours since October 2019.” A figment of sentiment hurts …!

  • VRTX and Crispr Therapeutics (CRSP) appears to be making progress on a cure for two blood diseases. But only CRSP stock popped.
  • But VRTX stock was under pressure on Friday after the company said it wouldn't move a treatment for a rare disease called alpha-1 antitrypsin deficiency into final-phase testing. The drug met its goal in a mid-stage test, but appeared unlikely to benefit patients clinically.

For the week, the major benchmarks are mixed. The Dow is off by 1%, but the S&P 500 is up 0.2%, on pace for its third straight positive week; while the Nasdaq is the outperformer this week with a 1.5% gain so far, poised to post its fourth winning week in a row.

 

RegMed Investors’ (RMi) pre-open: “the sector revels in news but, is not immune to being downtrodden” … https://www.regmedinvestors.com/articles/11951

 

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

  • Friday opened positive at 23/9, 1 flat and 1 acquired, stayed positive at the mid-day to 17/15, 2 flats and 1 acquired, closing positive at 21/12, 1 flat and 1 acquired;
  • Thursday opened positive at 26/6, 2 flats and 1 acquired, stayed positive at the mid-day to 20/12, 2 flats and 1 acquired, closing positive at 26/9, 1 flat and 1 acquired;
  • Wednesday opened positive at 30/2, 2 flats and 1 acquired, stayed positive at the mid-day to 24/10 and 1 acquired, closing positive at 22/12 and 1 acquired;
  • Tuesday opened positive at 29/5, 1 flat and 1 acquired, strayed negative at the mid-day to 12/22 and 1 acquired, closing positive at 25/9 and 1 acquired;
  • Monday opened positive at 21/12, 1 flat and 1 acquired, stayed positive at the mid-day to 30/14, 2 flats and 1 acquired, closing positive at 30/4, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is promoting share pricing on Friday as 1,395 shares traded moving up +$0.04 to $1.25 after Thursday’s 1,050 share traded only moved the share price +$0.01 to $1.21 after Wednesday’s 2,200 shares traded with a negative close of -$0.06 to $1.20, Tuesday’s  1,216 shares traded i.e., were “pumped” as the stock increased +0.13 to $1.26, Monday’s 2,350 shares traded dropping the stock -$0.17 to $1.13, Friday’s as 800 shares traded pumping the stock +$0.19 to $1.30 and last Thursday’s 3528 shares traded with no pricing advantage. WHO is buying this “zombie”?

 

Pre-open Indications: 5 HITs <BUY: bluebird bio (BLUE +$0.21), Editas Medicine (EDIT +$0.52), Precigen (PGEN +$0.34), Sage Therapeutics (SAGE +$3.02), Pluristem (PSTI +$0.04)> and 3 MISS < Biostage (BSTG +$0.04), Global Blood Therapeutics (GBT -$1.03), Regenxbio (RGNX -$0.09),

 

RegMed/Cell and Gene Therapy Earnings Scorecard Q1/21 LPS Results … MESO added: https://www.regmedinvestors.com/articles/11628

 

There are clear winners and losers

Jumping with share pricing momentum:

  • ReNeuron (RENE.L), CRISPR Therapeutics (CRSP) – again, Sage Therapeutics (SAGE), Ultragenyx (RARE) - again, Intellia Therapeutics (NTLA) to name 5 of the 21 inclining of the 35 covered

Hammered in today’s market:

  • Global Blood therapeutics (GBT), uniQure NV (QURE), Chinook Pharmaceuticals (KDNY) – again, Ionis Pharmaceuticals (IONS), Cellectis SA (CLLS) to name 5 of the 12 declining of the 35 covered

 

Key metrics:

  • Sector volume was WEAK with 11 of the 21-upside having higher than the 3-month average volume with the volume of 1 of 12-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 21-upside were +0.62% (ATHX) to +7.37% (RENE.L) while the 12-downside ranges from -0.14% (VCEL) to -2.95% (BLCM);

 

Friday’s (10 of 21) incliners:

  • ReNeuron (REN.L +$8.00 after Thursday’s -$5.50, Wednesday’s -$9.50, Tuesday’s -$2.50 and Monday’s -$1.50);
  • CRISPR Therapeutics (CRSP +$3.29 after Thursday’s +$3.73, Wednesday’s +$1.07, Tuesday’s -$0.29 and Monday’s +$5.91);
  • Sage Therapeutics (SAGE +$3.02 after Thursday’s +$0.92, Wednesday’s +$0.41, Tuesday’s +$4.29 and Monday’s +$2.86);
  • Ultragenyx (RARE +$2.35 after Thursday’s +$4.98, Wednesday’s +$0.93, Tuesday’s -$2.04 and Monday’s +$3.30);
  • Intellia Therapeutics (NTLA +$2.14 after Thursday’s +$2.72, Wednesday’s +$1.45, Tuesday’s +$1.32 and Monday’s +$5.42);
  • Alnylam Pharmaceuticals (ALNY +$1.76 after Thursday’s +$5.85, Wednesday’s +$6.33, Tuesday’s +$0.62 and Monday’s +$4.86);
  • Fate Therapeutics (FATE +$1.33 after Thursday’s +$5.55, Wednesday’s +$3.64 after Tuesday’s +$2.23 and Monday’s +$4.21);
  • BioLife Solutions (BLFS +$1.13 after Thursday’s +$0.90);
  • AxoGen (AXGN +$0.87);

Friday’s (12 of 12) decliners:

  • Global Blood Therapeutics (GBT -$1.03 after Thursday’s +$1.25, Wednesday’s -$0.51 and Tuesday’s +$1.08);
  • uniQure NV (QURE -$0.60);
  • Chinook Therapeutics (KDNY -$0.35 after Thursday’s -$0.46, Wednesday’s -$0.94 and Tuesday’s +$0.91);
  • Ionis Pharmaceuticals (IONS -$0.28 after Thursday’s +$1.29);
  • Cellectis SA (CLLS -$0.12);
  • Voyager therapeutics (VYGR -$0.11);
  • Bellicum Pharmaceuticals (BLCM -$0.10);
  • Regenxbio (RGNX -$0.09);
  • Vericel (VCEL -$0.08);
  • Homology Medicine (FIXX -$0.06);
  • Brainstorm Cell therapeutics (BCLI -$0.01);
  • Applied Genetic Technologies (AGTC -$0.01 after Thursday’s -$0.01);

Closing flat – Sangamo Therapeutics (SGMO) and 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

More than half of Americans have received at least one dose of a vaccine and 42% are fully vaccinated.

Friday’s COVID Data Tracker <Million>:

  • Cases: 34,285 M 
  • Death rate totaled 614,353
  • Recovered/Discharged 28,302,785

 

Stats:

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

  • Friday, the IBB closed down -0.67% and XBI closed down -0.19%
  • Thursday, the IBB closed up +1.69% and XBI closed up +1.02%
  • Wednesday, the IBB closed up +1.54% and XBI closed up +0.94%
  • Tuesday, the IBB closed down -0.13% and XBI closed up +0.64%
  • Monday, the IBB closed up +3.44% and XBI closed up +4.62%

 

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.45 points or -2.80% at 15.65
  • Thursday was down -1.79 points or -10.01% at 16.10
  • Wednesday was up +0.82 points or +4.80% at 17.89
  • Tuesday was up +0.65 points or +3.96% at 17.07
  • Monday was flat at 0.00 points or 0.00% at 16.42

 

Upside volume: weak

  • Friday: 11 out of the 21-upside had higher than the 3-month average volume;
  • Thursday: 2 out of the 26-upside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 24-upside had higher than the 3-month average volume;
  • Tuesday: 7 out of the 25-upside had higher than the 3-month average volume;
  • Monday: 16 out of the 30-upside had higher than the 3-month average volume;

 

Downside volume: low

  • Friday: 1 out of the 12-downside had higher than the 3-month average volume
  • Thursday: 1 out of the 7-downside had higher than the 3-month average volume;
  • Wednesday: 3 out of the 10-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 9-downside had higher than the 3-month average volume;
  • Monday: 3 out of the 4-downside had higher than the 3-month average volume;

 

Percentage (%) movement/range statistics: price versus percentage …

  • Friday’s percentage (%) of the 21-upside were +0.62% (ATHX) to +7.37% (RENE.L) while the 12-downside ranges from -0.14% (VCEL) to -2.95% (BLCM);
  • Thursday’s percentage (%) of the 26-upside were +0.33% (QURE) to +6.70% (FATE) while the 7-downside ranges from -0.23% (AGTC) to -4.82% (RENE.L);
  • Wednesday’s percentage (%) of the 22-upside were +0.08% (IONS) to +4.19% (ALNY) while the 12-downside ranges from -0.42% (PGEN) to -7.69% (RENE.L);
  • Tuesday’s percentage (%) of the 25-upside were +0.24% (AGTC) to +11.50% (BSTG) while the 9-downside ranges from -0.24% (CRSP) to -4.57% (BCLI);
  • Monday’s percentage (%) of the 30-upside were +1.79% (AXGN) to +8.84% (BCLI) while the 4-downside ranges from -1.18% (RENE.L) to -13.08% (BSTG);

 

June, third month of Q2/21:

Friday closed positive with 21 advancers, 12 decliners, 1 flat and 1 acquired

Thursday closed positive with 26 advancers, 7 decliners, 1 flat and 1 acquired

Wednesday closed positive with 22 advancers, 12 decliners and 1 acquired

Tuesday closed positive with 25 advancers, 9 decliners and 1 acquired

Monday closed positive with 30 advancers, 4 decliners and 1 acquired

Friday closed positive with 25 advancers, 8 decliners, 1 flat and 1 acquired

Thursday closed negative with 7 advancers, 26 decliners, 1 flat and 1 acquired

Wednesday closed negative with 10 advancers, 23 decliners, 1 flat and 1 acquired

Tuesday closed positive with 17 advancers, 16 decliners, 1 flat and 1 acquired

 

The BOTTOM LINE: Six positive sector closes in a row …

it's still a tricky market, don’t be ‘suckered” by the new of newest highs.

I’m in for the “ride” however, I’m STIL expecting the sector rotation trades to continue to play out – I’m maintaining SELLING into STRENGTH into Friday.

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!”

Don’t get complacent …

 

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.