May 27, 2021 5:47pm

Low trading volume as anticipated, volatility helps the oversold while the Nasdaq faltered leading into the holiday weekend

My comments are important in trying to distinguish the temporary from real pricing digression or progress.

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The Dow closed UP +141.59 points (+0.41%); the S&P closed UP +4.89 points (+0.12%) while the Nasdaq closed DOWN -1.72 points (-0.01%)

 

Henry’omics:

Indexes climbed on Thursday as investors digested stronger-than-expected labor-market data; yet, the Nasdaq slipped.

 

Data Docket: Initial jobless claims fell to 406,000, hitting a new pandemic low and much less than expected. Economists had expected a total of 425,000 Americans to have filed unemployment benefits in the week ended May 22.

  • Also, the Commerce Department left its initial estimate on first-quarter gross domestic product unchanged at 6.4%

 

RegMed Investors’ (RMi) pre-open: “U.S. labor market data expected to hint at the state of the U.S. economy. Trading volumes are likely to lessen heading into the extended Memorial Day holiday weekend, which could exacerbate price moves.” …  https://www.regmedinvestors.com/articles/11930

 

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

  • Thursday opened negative at 9/24, 1 flat and 1 acquired, flipped positive before to the mid-day at 21/12, 1 flat and 1 acquired, closing positive at 19/13, 2 flats and 1 acquired;

 

The Biostage (BSTG) Chronicles: BSTG was down -$0.21 to $1.11 with 5,605 shares traded until the “promote and pump” kicked-in with shares bought to move it to -$0.00 with 5,617 shares trade.

 

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

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Sage Therapeutics (SAGE), uniQure NV (QURE), Vericel (VCEL), Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) to name 5 of the 19 inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L), Cellectis SA (CLLS), Editas Medicine (EDIT), Global Blood Therapeutics (GBT), Intellia Therapeutics (NTLA), to name 5 of the 13 declining of the 35 covered

 

Key metrics:

  • Sector volume was LOW with 5 of the 19-upside having higher than the 3-month average volume with the volume of 2 of 13-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 19-upside were +0.46% (SGMO) to +5% (QURE) while the 13-downside ranges from -0.10% (CRSP) to -4.40% (CLLS);

 

Thursday’s (10 of 19) incliners:

  • Sage Therapeutics (SAGE +$2.22 after Wednesday’s +$0.88, Tuesday’s -$2.83 after Monday’s -$3.00);
  • Vericel (VCEL +$1.73 after Wednesday’s +$1.08, Tuesday’s +$0.12 and Monday’s +$0.11);
  • uniQure NV (QURE +$1.66);
  • Alnylam Pharmaceuticals (ALNY +$1.43 after Wednesday’s -$0.84, Tuesday’s +$1.12);
  • Ionis Pharmaceuticals (IONS +$1.33);
  • BioLife Solutions (BLFS +$1.23 after Wednesday’s +$0.90, Tuesday’s -$0.32 and Monday’s -$1.14);
  • Regenxbio (RGNX +$1.06 after Wednesday’s +$0.57 and Tuesday’s -$0.78);
  • bluebird bio (BLUE +$0.69);
  • Ultragenyx (RARE +$0.64 after Wednesday’s -$0.85 and Tuesday’s -$1.76);
  • AxoGen (AXGN +$0.47 after Wednesday’s -$0.80, Tuesday’s -$0.47 and Monday’s +$0.27);

Thursday’s (10 of 13) decliners:

  • ReNeuron (RENE.L -$1.50 after Wednesday’s -$3.00 and Tuesday’s +$3.00);
  • Cellectis SA (CLLS +$0.71);
  • Editas Medicine (EDIT -$0.47 after Wednesday’s +$2.43 and Tuesday’s -$0.25);
  • Global Blood Therapeutics (GBT -$0.43 after Wednesday’s +$1.07 and Tuesday’s +$0.89);
  • Intellia Therapeutics (NTLA -$0.40 after Wednesday’s +$3.16, Tuesday’s +$2.06 and Monday’s +$3.52);
  • Fate Therapeutics (FATE -$0.22 after Wednesday’s +$1.55, Tuesday’s +$0.71 and Monday’s +$0.22);
  • CRISPR Therapeutics (CRSP -$0.12 after Wednesday’s +$2.10, Tuesday’s +$0.71 and Monday’s +$0.03);
  • Adverum Biotechnologies (ADVM -$0.06);
  • Bellicum Pharmaceuticals (BLCM -$0.05);
  • Pluristem (PSTI -$0.03);

Closing 2 – Athersys (ATHX), Biostage (BSTG) and 1 - Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

  • Average daily Covid case counts in the U.S. are at less than half of the level recorded at the start of May.

Tuesday’s COVID Data Tracker <Million>:

  • Cases: 33.97 M
  • Death rate totaled 606,312 - dipping <Johns Hopkins University>
  • Federal data shows the U.S. is reporting an average of 1.7 million daily vaccinations, and nearly 50% of the U.S. population has received one dose or more.

 

Stats:

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

  • Thursday, the IBB closed up +0.12% and XBI closed up +1.28%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -0.62 points or -3.57% at 16.74

Upside volume: low

  • Thursday: 5 out of the 19-upside had higher than the 3-month average volume;

Downside volume: low

  • Thursday: 2 out of the 13-downside had higher than the 3-month average volume;

Percentage (%) movement/range statistics: LOW % with limited pricing drops as upside maintains

  • Thursday’s percentage (%) of the 19-upside were +0.46% (SGMO) to +5% (QURE) while the 13-downside ranges from -0.10% (CRSP) to -4.40% (CLLS);

 

May, second month of Q2/21:

Thursday closed positive with 19 advancers, 13 decliners, 2 flats and 1 acquired

Wednesday closed positive with 27 advancers, 6 decliners, 1 flat and 1 acquired

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

Monday (5/24) closed negative with 9 advancers, 23 decliners, 2 flat and 1 acquired

 

The BOTTOM LINE: As I had stated “Expect the sector rotation trades to continue to play out.”

Q1 earnings season is wrapping up and my reaction to earnings LPS (loss-per-share) results reveals more than some skepticism that Q1 losses provide a reason for additional forward-looking less than optimistic and more pessimism through the mid-year.”

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!”

My time frame of measurement remains Friday to Friday and has been proved right again, 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.