May 15, 2020 5:50pm

… Although my 35-company coverage list blossomed after being oversold

We’re still in the “Twilight Zone” of share pricing uncertainty

Pre-open indications follow-up: 6 HITs <BioLife Solutions (BLFS +$0.78), Mesoblast (MESO -$0.46), Fate Therapeutics (FATE +$1.83), Intellia Therapeutics (NTLA +$1.31), Sage Therapeutics (SAGE +$2.47), Athersys (ATHX +$0.0)> and 2 MISS < Cellectis SA (CLLS +$1.91), bluebird bio (BLUE +$2.60)

The week in review

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  Who is feeding your portfolio - profit from RMi’s analysis! Check the BOTTOM LINE <read more>

The Dow closed UP +60.08 points (+0.28%), the S&P closed UP +11.20 points (+0.39%) while the NASDAQ closed UP +70.84 points (+0.79%)

 

Henry’omics:

Indexes fell and clawed back its losses with slight gains in volatile trading Friday as markets wrapped up its worst weekly performance since late March

I had stated investors had to deal with a slew of economic reports as well as reports of increasing tensions between China and the U.S.

  • U.S. monthly retail sales fell by 16.4% in April, a record. Economists expected a decline of 12.3%. So-called core retail sales —which exclude auto, gas, food and building materials sales — dropped 15.3%;
  • Where was the % incline of alcohol product sales, I contributed …?
  • The Trump administration has moved to block semiconductor shipments to Chinese company Huawei. The Commerce Department said it would “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.

For the week, the NASDAQ (-1.1%) and S&P 500 (-2.2%) while the DOW was down -2.65%.

Screw them … my coverage list felt “more than something” as a sentiment injection stabilized the oversold … stimulating barebones momentum. Lucky but, for how long?

  • The University of Michigan’s consumer sentiment index unexpectedly rose in early May as U.S. fiscal stimulus measures “improved consumers’ finances and widespread price discounting boosted their buying attitudes.”

 

RegMed/Cell and gene therapy 35 covered equities’ Advance/Decline (A/D) lines: progressions and regressions …

  • Friday opened positive at 20/8 and 2 flats, stayed positive at the mid-day at 25/9 and 1 flat and closed positive at 24/10 and 1 flat;
  • Thursday opened negative at 3/31 and 1 flat, stayed negative at the mid-day at 12/19 and 4 flats and closed negative at 8/24 and 3 flats;
  • Wednesday opened negative at 10/23 and 2 flats, stayed negative at the mid-day at 2/32 and 1 flat and closed negative at 3/31 and 1 flat;
  • Tuesday opened negative at 5/28 and 2 flats, popped positive at the mid-day at 25/8 and 2 flats and closed negative at 11/21 and 3 flats;
  • Monday opened positive at 17/14 and 4 flats, stayed positive at the mid-day at 24/9 and 2 flats and closed positive at 24/9 and 2 flats;

 

Volume LOW with 8 out of the 24-upside having higher than the 3-month average volume and 2 out of the 10-downside having higher than the 3-month average volume. The percentage (%) of the 24-upside were +0.08% (STML) to +10.97% (CLLS) while the 10-downside ranged from -0.55% (MSXG) to -4.86% (BCLI).                                 

 

Hammered in today’s market:

  • Mesoblast (MESO), Brainstorm Cell Therapeutics (BCLI), Applied Genetic Technologies (AGTC), AxoGen (AXGN), Pluristem (PSTI) to name a few of the 10 slipping of the 35 covered

Jumping with momentum:

  • CRISPR Therapeutics (CRSP), Ultragenyx (RARE), Global Blood Therapeutics (GBT), Alnylam Pharmaceuticals (ALNY), Editas Medicine (EDIT), bluebird bio (BLUE) to name a few of the 24 trading up

 

Q1/2020 results will be disseminated through RegMed Earnings Scorecard - Q1/20 - to date https://www.regmedinvestors.com/articles/11332 - 27 of 35 so far …

 

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

  • Friday, the IBB closed up + 2.50% and XBI also closed up +3.58%
  • Thursday, the IBB closed down -0.45% and XBI also closed down -0.92%
  • Wednesday, the IBB closed down -1.11% and XBI also closed down -1.99%
  • Tuesday, the IBB closed down -2.13% and XBI also closed down -2.16%
  • Monday, the IBB closed up +4.28% and XBI also closed up +4.77%

 

Friday’s (top 10) incliners:

  • Ultragenyx (RARE +$6.56 after Thursday’s +$0.65, Wednesday’s -$2.22, Tuesday’s -$1.07 and Monday’s +$3.52);
  • CRISPR Therapeutics (CRSP +$5.21 after Thursday’s -$1.49, Wednesday’s -$2.08, Tuesday’s -$1.74 and Monday’s +$7.45);
  • Global Blood Therapeutics (GBT +$3.12 after Thursday’s -$1.57, Wednesday’s -$3.40, Tuesday’s -$3.14 and Monday’s -$0.20);
  • Alnylam Pharmaceuticals (ALNY +$3.08 after Thursday’s -$3.26, Wednesday’s -$4.53, Tuesday’s +$1.76 and Monday’s +$6.30);
  • bluebird bio (BLUE +$2.60 after Thursday’s -$1.76);
  • Sage Therapeutics (SAGE +$2.47 after Thursday’s -$1.45, Wednesday’s -$1.96 and Tuesday’s -$1.84);
  • uniQure (QURE +$2.01):
  • Editas Medicine (EDIT +$1.95 after Thursday’s +$1.830;
  • Cellectis SA (CLLS) +$2.91 after Thursday’s +$3.71);

Friday’s (only 10) decliners:

  • Mesoblast (MESO -$0.46 after Thursday’s +$0.17 and Wednesday’s +$0.76);
  • Brainstorm Cell Therapeutics (BCLI -$0.27);
  • Applied Genetic Technologies (AGTC -$0.17);
  • Pluristem (PSTI-$0.17 after Thursday’s +$0.87);
  • AxoGen (AXGN) -$0.24);
  • Biostage (BSTG -$0.08);
  • Precision (PGEN -$0.08);
  • Bellicum Pharmaceuticals (BLCM -$0.04 after Thursday’s +$0.30);
  • Verastem (VSTM -$0.025);
  • MiMedx (MDXG -$0.02 after Thursday’s +$0.02 and Wednesday’s +$0.025);

 

Percentage (%) movement/range statistics: look closely …

  • Friday’s % of the 24-upside were +0.08% (STML) to +10.97% (CLLS) while the 10-downside ranged from -0.55% (MSXG) to -4.86% (BCLI).
  • Thursday’s % of the 8-upside were +0.55% (MDXG) to +27.08% (CLLS) while the 24-downside ranged from -0.16% (STML) to -21.3% (CLBS); 
  • Wednesday’s % of the 3-upside were +0.70% (MDXG) to +6.67% (MESO) while the 31-downside ranged from -0.37% (STML) to -8.61% (CLLS); 
  • Tuesday’s % of the 11-upside were +0.41% (STML) to +8.78% (CLBS) while the 21-downside ranged from -0.42% (MDXG) to -13.46% (BLCM); 
  • Monday’s % of the 24-upside were +0.33% (SAGE) to +15.14% (ATHX) while the 9-downside ranged from -0.12% (STML) to -4.22% (RENE.L); 

 

Sentiment and a few daily indicators:

 U.S. monthly retail sales fell by 16.4% in April, a record and … and market sentiment took a hit amid rising trade tensions between China and the U.S.

Some stocks rose slightly in volatile trading Friday as grappled with a slew of economic reports as well as increasing tensions between China and the U.S.

Given the amount of uncertainty that still looms, we should not be surprised by the rises and falls of indexes and stocks we’ve seen in markets today!

The number of confirmed U.S. coronavirus cases: every day I get sadder as I post these numbers …

  • Friday 1.4 million,
  • Thursday 1.4 million,
  • Wednesday 1.3 million,
  • Tuesday 1.3 million,
  • Monday 1.3 million,

Friday’s death rate escalated to a total of 85,906 after Thursday’s 85,066 after Wednesday’s 82,806, Tuesday’s 80,897 and Monday’s 79,894 <John Hopkins University>

 

Upside volume stats: 

  • Friday: 8 out of the 24-upside had higher than the 3-month average volume;
  • Thursday: 3 out of the 8-upside had higher than the 3-month average volume;
  • Wednesday: 11 out of the 32-upside had higher than the 3-month average volume;
  • Tuesday: 8 out of the 11-upside had higher than the 3-month average volume;
  • Monday: 12 out of the 24-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -0.72 points or -2.21% at 31.89,
  • Thursday was down -2.81 points or -7.96% at 32.47,
  • Wednesday was up +1.89 points or +5.60% at 34.84,
  • Tuesday was up +5.47 points or +19.84% at 33.04,
  • Monday was down -0.41 points or -1.47% at 27.57,

Downside volume stats:

  • Friday: 2 out of the 10-downside had higher than the 3-month average volume;
  • Thursday: 4 out of the 24-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 3-downside had higher than the 3-month average volume;
  • Tuesday: 9 out of the 21-downside had higher than the 3-month average volume;
  • Monday: 2 out of the 9-downside had higher than the 3-month average volume;

Closing flat: RENE.L

 

May

Friday closed positive with 10 decliners, 24 advancer and 1 flat

Thursday closed negative with 24 decliners, 8 advancer and 3 flats

Wednesday closed negative with 31 decliners, 3 advancer and 1 flat

Tuesday closed negative with 21 decliners, 11 advancer and 3 flats

Monday (5/11) closed positive with 9 decliners, 24 advancer and 2 flats

Friday closed positive with 12 decliners, 20 advancer and 3 flats

Thursday closed negative with 22 decliners, 11 advancer and 2 flats

Wednesday closed positive with 13 decliners, 20 advancer and 2 flats

Tuesday closed positive with 10 decliners, 25 advancer and 0 flats

Monday (5/4) closed positive with 7 decliners, 28 advancer and 0 flats

Friday (5/1) closed negative with 25 decliners, 8 advancer and 2 flats

 

The BOTTOM LINE: the sector is neither oversold or overbought as volume remains low and sentiment stagnant although my cohort of 35 companies experienced a rise upside after an on and off month – with what I would say is an investor complacent period as traders and algorithms are "ruling".

Trends are emerging but, I would wait, validate and verify before any moves.

An old saying, "watch your corners"!

 

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.