April 6, 2020 5:53pm

Next step, don't touch any equities, a re-test will allow the capital markets to regenerate and revitalize the economy

Pre-open indications: 6 HITs <BLUE +$1.47), (SAGE +$2.42), (CRSP +$2.79), (VCEL +$0.70), (MESO +$1.96), Alnylam Pharmaceuticals (ALNY +$6.32)> and 0 MISS

What I provide is an “intelligence newspaper” to ensure that shareholders are kept apprised based on a 24-hour surveillance of “our” universe, the RegMed/cell and gene therapy sector and its surrounding markets. Check the BOTTOM LINE … <reads more>

The Dow closed UP +1597.21 points (+7.59%), the S&P closed UP +175.03 points (+7.03%) while the NASDAQ closed UP +540.16 points (+7.33%)

 

Henry’omics:

Indexes jumped on Monday, rebounding from sharp losses in the previous week, as the number of new coronavirus cases in the U.S. appeared to slow down.

  • Slowing death rates in Europe also offered up some hope that the U.S would be nearing its peak soon as well and that social distancing measures are working.

 

Today was a session to sell those “weak sister” stocks into strength and volume based on speculative upsides and past history as well as those who desperately need to re-capitalize.

 

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

  • Monday, the IBB closed up +5.14% and XBI also closed up +7.40%
  • Friday, the IBB closed down -1.35% and XBI also closed down -1.341%

 

Volatility in the market is usually inversely correlated in the short-term. The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Monday's volatility was down -1.56 points or -3.33% at 45.24,
  • Friday's volatility was down -4.11 points or -8.07% at 46.80,
  • The previous week in March, the VIX eclipsed its financial crisis high, closing at 82.69.

 

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

  • Monday opened positive at 33/2, stayed positive at the mid-day at 31/4 and closed positive at 33/2 of the 35 covered companies;
  • Friday opened positive territory at 19/25 and 1 flat (SAGE) continuing to the mid-day positive at 13/21 and 1 flat (CRSP) and closed negative at 12/23;

 

Monday’s (only 10) incliners:

  • Alnylam Pharmaceuticals (ALNY +$6.32 after Friday’s +$1.61, Thursday’s -$0.33 and Wednesday’s -$4.31);
  • Global Blood Therapeutics (GBT +$4.74 after Friday’s +$2.10, Thursday’s +$1.83 and Wednesday’s -$2.36);
  • ReNeuron (RENE.L +$4.00 after Friday’s +$10.00);
  • Ultragenyx Pharmaceuticals (RARE) +$2.95 after Friday’s -$1.72, Thursday’s +$3.11 and Wednesday’s +$2.48);
  • Ionis Pharmaceuticals (IONS +$1.59 after Friday’s -$0.50 and Thursday’s +$2.16);
  • CRISPR Therapeutics (CRSP +$2.79);
  • Sage Therapeutics (SAGE +$2.42 after Friday’s -$0.80);
  • Regenxbio (RGNX +$2.33 after Friday’s -$1.68);
  • uniQure NV (QURE +$2.11);
  • Mesoblast (MESO +$1.96);
  • Caladrius Biosciences (CLBS +$0.05);

Monday’s (only 2) decliners:

  • Biostage (BSTG -$0.15 after Friday’s -$0.54, Thursday’s -$0.06 and Wednesday’s +$0.20);
  • Athersys (ATHX -$0.06 after Friday’s +$0.14, Thursday’s -$1.24, Wednesday’s +$1.22 and last Tuesday’s +$0.98);

 

Today’s stand-outs:

2-day repeat upsiders:

  • ReNeuron (RENE.L), Alnylam Pharmaceuticals (ALNY) and
  • 3-day repeater - Global Blood Therapeutics (GBT);

3-day repeat downslider:

  • Biostage (BSTG)

 

Volumes versus 3-month averages:

  • Monday’s volume was LOW as 6 out of the 33-upside had higher than the 3-month average volume as only 1 out of the 2-downside had higher than the 3-month average volume.
  • Friday’s volume was LOW as 2 out of the 12-upside had higher … with even LOWER volume as only 2 out of the 23-downside had higher than the 3-month average volume.

 

Percentage (%) movement/range statistics: thinning …

  • Monday’s % of the 33-upside were +2.84% (CLBS) to +46.67% (MESO) while the 2-downside ranged from -2.08% (ATHX) to -4.17% (BSTG) were a lot higher than usual. 
  • Friday’s range of the xx-upside was +0.76% (NTLA) to +10.53% (RENE.L) while the -downside ranged from -0.33% (CRSP) to -13.04% (BSTG -$0.54); 

 

Sentiment and its indicators:

  • The machines and algorithms "ruled", the human touch is MISSING.

Defining pandemic disruption: The number of confirmed U.S. coronavirus cases:

  • Monday to 347,003,
  • Friday to 258,214,
  • Thursday’s 234,400,
  • Wednesday’s 200,000,
  • Tuesday’s 177,452,
  • Last, Monday’s 153,200,

Monday’s death rate escalated t0 10.335 after Friday’s 6,605, Thursday’s 5,607 after Wednesday’s 4,400, Tuesday’s 3,440 and last Monday’s 2,828. <John Hopkins University>

 

Upside volume stats:  key numbers

  • Monday: 6 out of the 33-upside had higher than the 3-month average volume;
  • Friday:  4 out of the 12-upside had higher than the 3-month average volume;

Downside volume stats:

  • Monday: 1 out of the 2-downside had higher than the 3-month average volume;
  • Friday: 2 out of the 23-downside had higher than the 3-month average volume;

0 flats –

 

April

Monday closed positive with 2 decliners, 33 advancer and 0 flats

Friday closed negative with 23 decliners, 12 advancer and 0 flats

Thursday closed positive with 10 decliners, 23 advancer and 2 flats

Wednesday (4/1) closed negative with 31 decliners, 4 advancer and 0 flat

 

The BOTTOM LINE: today was a session to sell into those speculative companies who churn and burn through investors (BSTG and ATHX).

If investors liked a company before, buy the dips as they re-test the lows.

I would advise to average down in a bottom fishing scenario with a caveat of hesitation – sustainability upon and beyond (a dream) purchase.

Bad boys, bad boys what are going to do, pay for the ploys - MiMedx Group (OTC PINK: MDXG) finalized a settlement with the Department of Justice (the DOJ) resolving an investigation concerning the accuracy of commercial pricing disclosures to the United States Department of Veterans Affairs (the VA) for one of the products in connection with their Federal Supply Schedule contract. MDXG self-disclosed the matter to the VA Office of Inspector General (VA-OIG) in November 2018, prior to its knowledge of the qui tam suit (Qui tam lawsuits are a type of whistleblower lawsuit that is brought under the False Claims Act, a law that rewards whistleblowers in successful cases where the government recovers funds lost to fraud) or any underlying government investigation and, as DOJ acknowledged in the settlement agreement, the Company cooperated with the government’s investigation into the matter. Without admitting the allegations, MDXG has agreed to pay $6.5 million to the DOJ to resolve the matter.

NEVER forget, volatility sketches a contradictory picture of the short-term and when you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started

 

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.