June 10, 2021 5:28pm

We accept volatility when it’s in our favor until it isn’t

News: GeneTx Biotherapeutics LLC and Ultragenyx Pharmaceutical (RARE), companies partnered in the development of intrathecally administered GTX-102, an investigational treatment for Angelman syndrome, today announced that the U.K. Medicines and Healthcare Products Regulatory Agency (MHRA) has approved the Clinical Trial Application (CTA) for the P1/2 study of GTX-102 in pediatric patients with Angelman syndrome in the U.K.

Pre-open indications: 4 HITs and 2 MISS

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 UP +19.10 points (+0.06%); the S&P closed UP +19.63 points (+0.47%) while the Nasdaq closed UP +108.58 points (+0.78%)

 

Henry’omics:

Indexes are spinning upward as investors shrugged off a key inflation report that showed a bigger-than-expected increase in price pressures.

Data Docket: Consumer prices for May accelerated at their fastest pace since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the Labor Department reported.

  • The consumer price index, which represents a basket including food, energy, groceries and prices across a spectrum of goods, rose 5% from a year ago. Economists had been expecting a gain of 4.7%.
  • separate report showed that jobless claims for the week ended June 5 came in at 376,000, versus an estimate of 370,000. The total still marked the lowest of the pandemic era.

 

RegMed Investors’ (RMi) pre-open: “are we worried? I am, new highs can be anticlimactic.” … https://www.regmedinvestors.com/articles/11949

 

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

  • Thursday opened positive at 26/6, 2 flats and 1 acquired, stayed positive at the mid-day to 20/12, 2 flats and 1 acquired, closing positive at 26/9, 1 flat and 1 acquired;

 

The Biostage (BSTG) Chronicles: The “pump” is promoting share pricing as 1,050 share traded only moving the share price +$0.01 to $1.21 after Wednesday’s 2,200 shares traded with a negative close of -$0.06 to $1.20, Tuesday’s  1,216 shares traded i.e., were “pumped” as the stock increased +0.13 to $1.26, Monday’s 2,350 shares traded dropping the stock -$0.17 to $1.13, Friday’s as 800 shares traded pumping the stock +$0.19 to $1.30 and last Thursday’s 3528 shares traded with no pricing advantage. WHO is buying this “zombie”?

 

Pre-open Indications: 4 HITs < SELL into strength: CRISPR Therapeutics (CRSP +$3.12), Mesoblast (MESO +$0.14), Bellicum Pharmaceuticals (BLCM +$0.00), Sage Therapeutics (SAGE +$1.17)> and 2 MISS < Biostage (BSTG +$0.01), Applied Genetic Technologies (AGTC -$0.02),

 

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

 

There are clear winners and losers

Jumping with share pricing momentum:

  • Fate Therapeutics (FATE) - again, Alnylam Pharmaceuticals (ALNY) - again, Ultragenyx (RARE) - again, CRISPR Therapeutics (CRSP) – again, Intellia Therapeutics (NTLA) to name 5 of the xx inclining of the 35 covered

Hammered in today’s market:

  • ReNeuron (RENE.L) - again, Chinook Pharmaceuticals (KDNY) - again, Precigen (PGEN), Athersys (ATHX), Caladrius Biosciences (CLBS) to name 5 of the 7 declining of the 35 covered

 

Key metrics:

  • Sector volume was WEAK with 2 of the 26-upside having higher than the 3-month average volume with the volume of 1 of 7-downside having higher than the 3-month average volume;
  • Thursday’s percentage (%) of the 26-upside were +0.33% (QURE) to +6.70% (FATE) while the 7-downside ranges from -0.23% (AGTC) to -4.82% (RENE.L);

 

Thursday’s (10 of 26) incliners:

  • Alnylam Pharmaceuticals (ALNY +$5.85 after Wednesday’s +$6.33, Tuesday’s +$0.62 and Monday’s +$4.86);
  • Fate Therapeutics (FATE +$5.55 after Wednesday’s +$3.64 after Tuesday’s +$2.23 and Monday’s +$4.21);
  • Ultragenyx (RARE +$4.98 after Wednesday’s +$0.93, Tuesday’s -$2.04 and Monday’s +$3.30);
  • CRISPR Therapeutics (CRSP +$3.73 after Wednesday’s +$1.07, Tuesday’s -$0.29 and Monday’s +$5.91);
  • Intellia Therapeutics (NTLA +$2.72 after Wednesday’s +$1.45, Tuesday’s +$1.32 and Monday’s +$5.42);
  • Ionis Pharmaceuticals (IONS +$1.29);
  • Global Blood Therapeutics (GBT +$1.25 after Wednesday’s -$0.51 and Tuesday’s +$1.08);
  • Sage Therapeutics (SAGE +$0.92 after Wednesday’s +$0.41, Tuesday’s +$4.29 and Monday’s +$2.86);
  • bluebird bio (BLUE +$0.92)
  • BioLife Solutions (BLFS +$0.90);

Thursday’s (7 of 7) decliners:

  • ReNeuron (REN.L -$5.50 after Wednesday’s -$9.50, Tuesday’s -$2.50 and Monday’s -$1.50);
  • Chinook Therapeutics (KDNY -$0.46 after Wednesday’s -$0.94 and Tuesday’s +$0.91);
  • Precigen (PGEN -$0.18);
  • Athersys (ATHX -$0.05);
  • MiMedx (MDXG -$0.04);
  • Caladrius Biosciences (CLBS -$0.020;
  • Applied Genetic Technologies (AGTC -$0.01);

Closing flat – Pluristem (PSTI) and 1 -Stemline Therapeutics (STML – acquired)

 

COVID-19 updates:

More than half of Americans have received at least one dose of a vaccine and 42% are fully vaccinated.

Friday’s COVID Data Tracker <Million>:

  • Cases: 34,273 M 
  • Death rate totaled 613,778
  • Recovered/Discharged 28,277,131

 

Stats:

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

  • Thursday, the IBB closed up +1.69% and XBI closed up +1.02%

The CBOE Volatility Index (VVIX: INDEX) tracked:

  • Thursday was down -1.79 points or -10.01% at 16.10

Upside volume: weak

  • Thursday: 2 out of the 26-upside had higher than the 3-month average volume;

Downside volume: low

  • Thursday: 1 out of the 7-downside had higher than the 3-month average volume;

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

  • Thursday’s percentage (%) of the 26-upside were +0.33% (QURE) to +6.70% (FATE) while the 7-downside ranges from -0.23% (AGTC) to -4.82% (RENE.L);

 

June, third month of Q2/21: 4 sessions in a row , not seen in a while

Thursday closed positive with 26 advancers, 7 decliners, 1 flat and 1 acquired

Wednesday closed positive with 22 advancers, 12 decliners and 1 acquired

Tuesday closed positive with 25 advancers, 9 decliners and 1 acquired

Monday closed positive with 30 advancers, 4 decliners and 1 acquired

 

The BOTTOM LINE: it's still a tricky market, don’t be ‘suckered” by the new of newest highs.

A good quote, "The market is really buying into the narrative that the rise in inflation is in fact transient because you're not seeing that necessarily being priced into fears in the bond market.” < Subadra Rajappa, head Of U.S. rates strategy at Societe Generale in New York>

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.