RegMed Investors’ (RMi) closing bell: as expected, gravity induced by the Fed was a sector force

June 16, 2021 5:41pm

The policymaking Federal Open Market Committee unanimously left its benchmark short-term borrowing rate anchored near zero

Pre-open indications: 2 HITs and 3 MISS <3 by pennies>

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

If you’re looking for sector intel, ideas and facts or numbers (which don’t lie) in a volatile climate, RMi defines the rigors of share pricing! My comments distinguish the temporary from real pricing digression or progress.

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The Dow closed DOWN -265.66 points (-0.77%); the S&P closed DOWN -22.89 points (-0.54%) while the Nasdaq closed DOWN -33.17 points (-0.24%)

Henry’omics:

Indexes dived after the update from the Fed as all three major U.S. indices fell following the afternoon announcement, as investors digested the possibility that interest rates could begin climbing sooner as Fed officials cited an improved economic outlook.

Fed chief Powell said in a press conference that “the so-called dot-plot projections that detail members’ forecasts for future rate increases should be taken with a “big grain of salt” and that the liftoff is “well into the future.”

Data Docket: The Fed raised its expectations for inflation this year and brought forward the time frame on when it will next raise interest rates.  However, the Fed gave no indication as to when it will begin cutting back on its aggressive bond-buying program, leaving investors to watch for Chairman Powell’s press conference on clues about when tapering will begin. <CNBC>

RegMed Investors’ (RMi) pre-open: “Waiting for Powell. Watch what he says, not what he does.” …  https://www.regmedinvestors.com/articles/11957

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

• Wednesday opened negative at 16/17, 1 flat and 1 acquired, stayed negative at the mid-day to 5/28, 1 flat, 1 flat and 1 acquired, closing negative at 10/22, 2 flats and 1 acquired;

The Biostage (BSTG) Chronicles: The “pump” dis STILL promoting, after volume of 205 shares drove the price +$0.089 to $1.30 after Tuesday’s 10,703 shares traded with the pricing DROPPED to -$0.039 to $1.21 after Monday’s 2,305 shares traded with NO gain … after Friday’s 1,395 shares traded moving up +$0.04 to $1.25, Thursday’s 1,050 share traded only moved the share price +$0.01 to $1.21 and last Wednesday’s 2,200 shares traded with a negative close of -$0.06 to $1.20 WHO is buying this “zombie”?

Pre-open Indications: 2 HITs < Global Blood therapeutics (GBT -$1.29), Intellia Therapeutics (NTLA -$9.41) and 3 MISS < Biostage (BSTG +$0.089), Editas Medicine (EDIT -$0.10), uniQure NV (QURE -$0.02)>  

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

There are clear winners and losers

Jumping with share pricing momentum:

• Vericel (VCEL), Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX), Ionis Pharmaceuticals (IONS), CRISPR Therapeutics (CRSP) to name 5 of the 10 inclining of the 35 covered

Hammered in today’s market:

• Intellia Therapeutics (NTLA), Fate Therapeutics (FATE), Sage Therapeutics (SAGE) - again, Ultragenyx (RARE) – again, Global Blood Therapeutics (GBT) to name 5 of the 22 declining of the 35 covered

Key metrics:

• Sector volume was LOW with 3 of the 10-upside having higher than the 3-month average volume with the volume of 6 of 22-downside having higher than the 3-month average volume;

• Wednesday’s percentage (%) of the 10-upside were +0.08% (BLFS) to +7.43% (BSTG) while the 22-downside ranges from -0.06% (QURE) to -10.61% (NTLA);

Wednesday’s (10 of 10) incliners:

• Vericel (VCEL +$2.07);
• Alnylam Pharmaceuticals (ALNY +$1.80);
• Regenxbio (RGNX +$1.74 after Tuesday’s -$0.96 and Monday’s -$0.16);
• Ionis Pharmaceuticals (IONS +$0.45 after Tuesday’s -$1.11 and Monday’s -$0.14);
• CRISPR Therapeutics (CRSP +$0.29 after Tuesday’s -$5.14 and Monday’s +$3.29);
• MiMedx (MDXG +$0.27);
• Voyager Therapeutics (VYGR +$0.12 after Tuesday’s +$0.01);
• Biostage (BSTG +$0.089) after Tuesday’s -$0.039 and Monday’s flat);
• Bellicum Pharmaceuticals (BLCM +$0.06);
• BioLife Solutions (BLFS +$0.03 after Tuesday’s +$0.97 and Monday’s +$0.63);

Wednesday’s (10 of 22) decliners:

• Intellia Therapeutics (NTLA -$9.41 after Tuesday’s +$0.65 and Monday’s +$2.71);
• Fate Therapeutics (FATE -$4.14 after Tuesday’s -$3.18 and Monday’s +$0.22);
• Sage Therapeutics (SAGE -$3.92 after Tuesday’s -$14.06 and Monday’s +$6.25);
• Ultragenyx (RARE -$2.26 after Tuesday’s -$2.84 and Monday’s +$1.17);
• Global Blood Therapeutics (GBT -$1.29 after Tuesday’s -$0.73 and Monday’s -$0.36);
• AxoGen (AXGN -$0.47);
• Cellectis SA (CLLS -$0.35 after Tuesday’s -$0.74 and Monday’s +$0.62);
• Homology Medicine (FIXX -$0.22);
• Precigen (PGEN -$0.18);
• Applied Genetic Technologies (-$0.14 after Tuesday’s +$0.21);

Closing flat - 2 – Athersys (ATHX), ReNeuron (RENE.L) and 1 -Stemline Therapeutics (STML – acquired)

Stats:

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

• Wednesday, the IBB closed down -0.72% and XBI closed up +0.12%

The CBOE Volatility Index (VVIX: INDEX) tracked:

• Wednesday was up +1.13points or +6.64% at 18.15

Upside volume: weak

• Wednesday: 3 out of the 10-upside had higher than the 3-month average volume;

Downside volume: low

• Wednesday: 6 out of the 22-downside had higher than the 3-month average volume;

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

• Wednesday’s percentage (%) of the 10-upside were +0.08% (BLFS) to +7.43% (BSTG) while the 22-downside ranges from -0.06% (QURE) to -10.61% (NTLA);

June, third month of Q2/21:

Wednesday negative with 10 advancers, 22 decliners, 2 flat and 1 acquired

Tuesday closed negative with 5 advancers, 28 decliners, 1 flat and 1 acquired

Monday closed positive with 18 advancers, 14 decliners, 2 flats and 1 acquired

The BOTTOM LINE: it's still an “inflated” market and sector, don’t be ‘suckered” by the new of newest highs or even lows.

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.