May 26, 2020 7:32pm

It’s all about a fulcrum dictating the action based on effort as I stated it was a day to sell into strength, right yet again!

Pre-open indications follow-up results: 8 HITs and 2 MISS <who>

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The Dow closed UP +529.95 points (+2.17%), the S&P closed UP +36.32 points (+1.23%) while the NASDAQ closed UP +15.63 points (+0.17%)

 

Pre-open indications follow-up results: 8 HITS < sold into strength - Athersys (ATHX -$0.09), Brainstorm Cell Therapeutics (BCLI +$0.10) Intellia Therapeutics (NTLA -$1.89), Cellectis SA (CLLS -$1.64), CRISPR Therapeutics (CRSP -$3.60), Editas Medicine (EDIT -$2.69); BUYs - Applied Genetic Technologies (AGTC +$0.42), Adverum Biotechnologies (ADVM -$0.12)  and 2 MISS < Pluristem (PSTI -$0.45), Alnylam Pharmaceuticals (ALNY -$4.09) on news > Utilize volatility as a tool, capital built is purchase power accumulated!

 

Henry’omics:

Stocks surged on Tuesday as optimism grew about the reopening of the economy.

The major averages cut their gains in the final hour of trading after a Bloomberg News report said the U.S. was considering sanctions on Chinese firms and officials over the situation in Hong Kong. That report came after White House National Security Advisor Robert O’Brien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong. <CNBC>

Economic activity continued to pick up as states begin opening up their economies.

 

Current attractions and trader targets:

Fate Therapeutics (FATE) hit a 52-week high of $35.76 and then dropped to $35.76;

 

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

  • Tuesday opened positive at 27/8, strayed neutral at the mid-day at 17/17 and 1 flat and closed negative at 10/25;
  • Monday- markets closed for holiday
  • Friday opened positive at 18/15 and 2 flats, stayed positive at the mid-day at 21/14 and closed positive at 29/6;

 

Key metrics:

  • Volume was increased with 5 out of the 10-upside having higher than the 3-month average volume and 12 out of the 25-downside having higher than the 3-month average volume;
  • Tuesday’s percentage (%) of the 10-upside were +0.19% (BLFS) to +17.34% (AXGN) while the 25-downside ranged from -0.30% (RARE) to -15.87% (CLBS); 

 

Hammered in today’s market:

  • ReNeuron (RENE.L), Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP), bluebird bio (BLUE), Editas Medicine (EDIT) to name the 25 slipping of the 35 covered

Jumping with momentum:

  • Ionis Pharmaceuticals (IONS), AxoGen (AXGN), Mesoblast (MESO), Homology Medicine (FIXX), Applied Genetic Technologies (AGTC) to name a few of the 10 trading up of 35 covered

 

Q1/2020 results will be disseminated through RegMed Earnings Scorecard - Q1/20 - to date https://www.regmedinvestors.com/articles/11332 - 31 of 35 so far …

  • Adverum Biotechnologies (ADVM) reports earnings on May 28th;
  • Mesoblast (MESO)

 

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

  • Tuesday, the IBB closed down -1.90% and XBI also closed down -2.36%;
  • Monday markets were closed
  • Friday, the IBB closed up +0.66% and XBI also closed up +1.20%

 

Tuesday’s (only 10) incliners:

  • Ionis Pharmaceuticals (IONS +$1.57);
  • AxoGen (AXGN +$1.37 after Friday’s -$0.18 and Thursday’s -$0.14);
  • Mesoblast (MESO +$0.83 after Friday’s -$0.16 and Thursday’s -$0.18);
  • Homology Medicine (FIXX +$0.55);
  • Applied Genetic Technologies (AGTC +$0.42);
  • uniQure NV (QURE +$0.35 after Friday’s +$0.92 and Thursday’s +$2.62);
  • Sage Therapeutics (SAGE +$0.12 after Friday’s +$0.96);
  • Brainstorm Cell Therapeutics (BCLI +$0.10);
  • BioLife Solutions (BLFS +$0.03);
  • Biostage (BSTG +$0.01);

Tuesday’s (bottom 10) decliners:

  • ReNeuron (RENE.L -$6.00 after Friday’s +$1.00);
  • Alnylam Pharmaceuticals (ALNY -$4.09 after Friday’s -$1.34, Thursday’s -$1.59, Wednesday’s +$1.04 and last Tuesday’s -$2.46);
  • CRISPR Therapeutics (CRSP -$3.60 after Friday’s +$2.16, Thursday’s +$0.99, Wednesday’s +$3.23 and last Tuesday’s+$0.01);
  • bluebird bio (BLUE -$2.87);
  • Editas Medicine (EDIT -$2.69 after Friday’s +$0.82, Thursday’s +$0.72 and last Wednesday’s +$1.49);
  • Intellia Therapeutics (NTLA -$1.89);
  • Regenxbio (RGNX -$1.80);
  • Cellectis SA (CLLS -$1.64);
  • Fate Therapeutics (FATE -$1.44 after Friday’s +$1.69, Thursday’s +$2.55, Wednesday’s +$2.13 and last Tuesday’s -$0.74);
  • Global Blood Therapeutics (GBT -$1.22 after Friday’s +$0.62 and Thursday’s -$1.60);

 

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

  • Tuesday’s percentage (%) of the 10-upside were +0.19% (BLFS) to +17.34% (AXGN) while the 25-downside ranged from -0.30% (RARE) to -15.87% (CLBS);
  • Monday was a holiday;
  • Friday’s percentage (%) of the 26-upside were +0.25% (STML) to +13.32% (BLCM) while the 9-downside ranged from -0.52% (MDXG) to -4.12% (VSTM); 

 

Sentiment and a few daily indicators:

The S&P 500 exceeded its 200-day moving average for the first time since March 5. Many technical analysts look at that moving average as a sign of the long-term trend. Rising above it could signal a change in long-term trend from bearish to bullish.

  • Data out Tuesday also reinforced the belief that the economy has hit its bottom amid the pandemic. A measure of consumer confidence jumped to 86.6 this month from 85.7 in April, according to the Conference Board. Economists polled by Dow Jones expected consumer confidence of 82.3 in May.
  • Meanwhile, new home sales in April also topped estimates. Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000, according to Dow Jones. <CNBC>

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

  • Tuesday 1.66 million
  • Monday was not reported, a holiday but, not for the dying
  • Friday 1.58 million
  • Last Tuesday 1.5 million,

Tuesday’s death rate escalated to a total of 98,426 after Friday’s 95,052 and last Tuesday’s 90,396 <John Hopkins University>

 

Upside volume stats: 

  • Tuesday: 5 out of the 10-upside had higher than the 3-month average volume;
  • Monday: holiday
  • Friday: 3 out of the 26-upside had higher than the 3-month average volume;

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Tuesday was down -0.15 points or -0.53% at 28.01,
  • Monday: markets were closed
  • Friday was down -1.37 points or +-4.64 % at 28.16,

Downside volume stats:

  • Tuesday: 12 out of the 25-downside had higher than the 3-month average volume;
  • Monday: holiday
  • Friday: 3 out of the 9-downside had higher than the 3-month average volume;
  • Monday: 1 out of the 6-downside had higher than the 3-month average volume;

Closing flat: 0

 

May

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

Monday – market closed, holiday

Friday closed positive with 9 decliners, 26 advancer and 0 flats

Thursday closed positive with 13 decliners, 29 advancer and 3 flats

Wednesday closed positive with 4 decliners, 30 advancer and 1 flat

Tuesday closed negative with 23 decliners, 9 advancer and 3 flats

Monday (5/18) closed positive with 6 decliners, 29 advancer and - flat

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 title, the hit and miss "list" and the morning's Bottom line says it all!

Reiterating, "good news causes spikes in share pricing, the net is bad news as many upside timely pricings are drained from the pricing spike. Believe it or not, I am not someone who focuses on a negative!

However, I MUST view all sides to size the sector against the market forces to come to a determination of speeding through the directionals at the crossroads or being cautious as I anticipate whether the traffic (m0mentum) light will turn yellow for caution.

A good day to SELL into strength of early optimism!

 

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.