November 6, 2020 5:24pm

Continuing election tensions create havoc in markets as coronavirus numbers jump

Pre-open indication results: 4 HITs and 2 MISS

Week in review …

An “intelligence newspaper” for smart investing in the RegMed, gene and cell therapy sector.  I track the numbers, so there’s no question re my opinion; so, you can do what others can't.

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The Dow closed DOWN -66.78 points (-0.24%), the S&P closed DOWN -1.01 points (- 0.03%) while the Nasdaq closed UP +4.30 points (+0.04%)

 

Henry’omics:

Indexes acted like a roller-coaster as clarity still mystified the electorate …

Despite the uncertainty around the presidential vote, markets came into Friday’s session riding a four-day winning streak and the major averages were on track for their best week in months.

  • The S&P 500 was up +7.3% and Nasdaq +9% and the Dow is up +6.9%, the biggest one-week rally since June.

 

From this a.m.’s Data Docket, “The Labor Department said the U.S. unemployment rate fell to 6.9% in October from 7.9%. Economists polled by Dow Jones expected the rate to dip to 7.7%. The U.S. economy also added 638,000 jobs last month, topping an estimate of 530,000.”

 

Pre-open indication: 4 HITs <CRISPR Therapeutics (CRSP -$0.68), Mesoblast (MESO -$0.16), Editas Medicine (EDIT -$1.06), Ionis Pharmaceuticals (IONS -$0.09)> 2 MISS < Biostage (BSTG +$0.23 with only 635 shares traded), bluebird bio (BLUE -$2.94)>

 

This morning, I stated in this a.m.’s newsletter – RegMed Investors’ (RMi) pre-open: yesterday, I wrote “bank” profits from highs … https://www.regmedinvestors.com/articles/11623

 

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

  • Friday opened negative at 10/23 and 2 flats, stayed negative at the mid-day at 7/27 and 1 flat, closing positive at xx/xx and 4 flats;
  • Thursday opened positive at 22/11 and 2 flats, stayed positive at the mid-day at 22/10 and 3 flats, closing positive at 20/11 and 4 flats;
  • Wednesday opened positive at 30/3 and 2 flats, stayed positive at the mid-day at 26/4 and 5 flats, closing positive at 28/4 and 3 flats;
  • Tuesday opened positive at 27/5 and 3 flats, stayed positive at the mid-day at 24/10 and 1 flat, closing positive at 30/4 and 1 flat;
  • Monday opened positive at 23/8 and 4 flats, strayed negative at the mid-day at 9/23 and 3 flats, closing positive at 17/15 and 3 flats;

 

Key metrics:

  • Sector volume was the usual LOW with 4 of the 6-upside having higher than the 3-month average volume with the increased volume of 7 of 28-downside having higher than the 3-month average volume;
  • Friday’s percentage (%) of the 6-upside were +0.56% (RENE.L) to +16.79% (BSTG on 635 shares traded) while the 28-downside ranges from -0.62% (SLDB) to -36.65% (GBT);

 

Hammered in today’s market:

  • Global Blood Therapeutics (GBT), Alnylam Pharmaceuticals (ALNY), Homology Medicine (FIXX), bluebird bio (BLUE), Fate Therapeutics (FATE) to name 5 of the 28 declining of the 35 covered

Jumping with share pricing momentum:  

  • BioLife Solutions (BLFS), Regenxbio (RGNX), Vericel (VCEL), ReNeuron (RENE.L), Brainstorm Cell therapeutics (BCLI) Biostage (BSTG) to name 6 of the 6 inclining of the 35 covered

 

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

  • Friday, the IBB closed down -2.06% and XBI closed down -2.42%
  • Thursday, the IBB closed down -0.05% and XBI closed down -0.05%
  • Wednesday, the IBB closed up +6.04% and XBI closed up +6.16%
  • Tuesday, the IBB closed up +1.77% and XBI closed UP +2.71%
  • Monday, the IBB closed down -0.18% and XBI closed down -0.01%

 

Friday’s (6 of 6) incliners:

  • BioLife Solutions (BLFS +$2.44 after Thursday’s -$0.60);
  • Regenxbio (RGNX +$1.00 after Thursday’s -$2.05 and Wednesday’s +$2.37);
  • Vericel (VCEL +$0.75 after Thursday’s +$0.53);
  • ReNeuron (RENE.L +$0.50);
  • Brainstorm Cell Therapeutics (BCLI +$0.37 after Thursday’s +$0.45 and Wednesday’s -$0.20);
  • Biostage (BSTG +$0.23 after Thursday’s -$0.10 after Wednesday’s flat, Tuesday’s $+0.09 and Monday’s flat);

Friday’s (10 of 28) decliner:

  • Global Blood Therapeutics (GBT -$22.11 after Thursday’s -$1.56, Wednesday’s +$7.89, Tuesday’s +$1.52 and Monday’s -$0.41);
  • Alnylam Pharmaceuticals (ALNY -$7.13 after Thursday’s -$1.63, Wednesday’s +$10.44, Tuesday’s +$4.14 and Monday’s +$1.94);
  • Ultragenyx (RARE -$2.99 after Thursday’s +$0.88, Wednesday’s +$11.53, Tuesday’s +$6.47 and Monday’s -$4.97);
  • bluebird bio (BLUE -$2.94 after Thursday’s -$9.72, Wednesday’s +$4.00, Tuesday’s +$1,46 and Monday’s +$1.38);
  • Homology Medicine (FIXX -$2.50 after Thursday’s +$0.97);
  • Fate Therapeutics (FATE -$1.64);
  • Cellectis SA (CLLS -$1.07 after Thursday’s +$1.63);
  • Editas Medicine (EDIT -$1.06 after Thursday’s +$1.10, Wednesday’s +$2.14 and Tuesday’s -$2.99);
  • Voyager therapeutics (VYGR -$0.96);
  • uniQure NV (QURE -$0.94);

Closing 1 –Stemline Therapeutics (STML – acquired)

 

Percentage (%) movement/range statistics: a 360 degrees comparison of % and pricing

  • Friday’s percentage (%) of the 6-upside were +0.56% (RENE.L) to +16.79% (BSTG on 635 shares traded) while the 28-downside ranges from -0.62% (SLDB) to -36.65% (GBT);
  • Thursday’s percentage (%) of the 20-upside were +0.20% (FATE) to +9.88% (CLLS) while the 11-downside ranges from -0.26% (QURE) to -16.60% (BLUE);
  • Wednesday’s percentage (%) of the 28-upside were +0.63% (CLBS) to +14.61% (GBT) while the 4-downside ranges from -1.86% (BCLI) to -6.67% (BLCM);
  • Tuesday’s percentage (%) of the 30-upside were +0.13% (CLLS) to +12.23% (PGEN) while the 4-downside of -1.10% (RENE.L) to -9.55% (EDIT);
  • Monday’s percentage (%) of the 17-upside were +0.19% (VYGR) to +14.66% (MDXG) while the 15-downside of -0.11% (PSTI) to -11.59% (BLCM);

 

Sentiment and a few daily indicators:

Sentiment was kept in check by better-than-expected U.S. unemployment data …

An appropriate quote, “Despite strong signals that many Americans are getting back to work, however, the number of coronavirus cases is rising and that may mean new restrictions on daily life that could further accelerate a shift to a more digital economy and increase calls for additional government stimulus,” Tony Bedikian, Head of Global Markets at Citizens.

Infection cases <Million>:

  • Friday 9.61 M cases
  • Thursday 9.49 M cases
  • Wednesday 9.39 M cases
  • Tuesday 9.29 M cases
  • Monday 9.2 M cases

Friday’s death rate totaled 234,049 after Thursday’s 233,767, Wednesday’s 232,693, Tuesday’s 231,566, Monday’s 231,011 and last Friday’s 229,141 <Johns Hopkins University>

 

Stats:

Upside volume: 

  • Friday: 4 out of the 6-upside had higher than the 3-month average volume;
  • Thursday: 11 out of the 20-upside had higher than the 3-month average volume;
  • Wednesday: 15 out of the 28-upside had higher than the 3-month average volume;
  • Tuesday: 4 out of the 30-upside had higher than the 3-month average volume;
  • Monday: 7 out of the 17-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Friday was down -2.72 points or -9.86% at 24.86
  • Thursday was down -1.99 points or -6.73% at 27.58
  • Wednesday was down -5.98 points or -16.82% at 29.57
  • Tuesday was down -1.58 points or -4.26% at 35.55
  • Monday was down -0.89 points or -2.34% at 37.13

Downside volume:

  • Friday: 7 out of the 28-downside had higher than the 3-month average volume;
  • Thursday: 8 out of the 11-downside had higher than the 3-month average volume;
  • Wednesday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Tuesday: 2 out of the 4-downside had higher than the 3-month average volume;
  • Monday: 5 out of the 15-downside had higher than the 3-month average volume;

 

November, the 2nd month of Q4 …

Friday closed negative with 6 advancers, 28 decliners and 1 flat 

Thursday closed positive with 20 advancers, 11 decliners and 4 flats 

Wednesday closed positive with 28 advancers, 4 decliners and 3 flats 

Tuesday closed positive with 30 advancers, 4 decliners and 1 flat 

Monday (11/2) closed positive with 17 advancers, 15 decliners and 3 flats 

 

The Bottom Line: It’s more than nice to be RIGHT again …

As I had stated yesterday, I was “calling an audible”, I just didn’t TRUST multiple session highs …

Now we have big swing in sector earnings’ LPS (loss-per-share) releases with the next month likely to remain volatile and uncertain.

Reiterating,” short-term risk and sentiment continue to weigh on investors, there are certainly fleeting patterns.’

 

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.