RegMed Investors (RMi) Closing Bell: slippin’ and slidin’

August 20, 2024 4:35pm

Summer fluctuations, I believe highlights “attention deficit” by investors but, maximizes the risk of adverse price movements as algorithms and electronic trading in alternating sessions “run the tables.” Investors are also readying themselves for the Fed’s Powell remarks Friday.

investors NEED to eventually see a ROI (return-on-investment) as volatility continues to elevate in 2H/24

I say today what others won't, so you can do what others can't by sticking to the FACTS!

Never leave an investor uninformed!  

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

Tuesday: The Dow closed DOWN -61.56 points or -0.15%, the S&P closed DOWN -11.13 points or -0.20% while the Nasdaq closed DOWN -59.83 points or -0.33%

• Tuesday, indexes ticked lower on Tuesday as investors struggled to continue building on the market’s month.
• Despite Tuesday’s moves, the major averages have bounced back and market volatility has tumbled since the start of the month. The CBOE Volatility Index (VIX)
•  is now under 16 after topping 65 on Aug. 5. That was also the day that the S&P 500 suffered its worst session since 2022 amid a global market sell-off sparked by a weak July jobs report and an interest rate hike in Japan. <CNBC>

Tuesday’s advance/decline line at the open was negative with 15 incliners, 17 declined and 3 flats; ending with a negative close of 8 incliner, 24 decliners and 3 flats

• the IBB was down -0.28% and the XBI was down -0.02%
• the VIX was up +1.22 point or +8.33% at 15.87

As compared to …

Monday: The Dow closed UP +236.77 points or +0.58%, the S&P closed UP +54 points or +0.97% while the Nasdaq closed UP +245.05 points or +1.39%

• Indexes traded higher Monday as markets look toward a possible signal this week from Fed Chair Powell about interest rates.

Monday’s advance/decline line at the open was positive with 25 incliners, 7 declined and 3 flats; ending with a positive close of 27 incliner, 6 decliners and 2 flats

• the IBB was up +2.04% and the XBI was up +3.15%
• the VIX was down -0.17 point or -1.15% at 14.63

Economic Data Docket: The economic and market spotlight this week will shift to Jackson Hole, Wyo., for the Kansas City Fed's annual economic symposium, which runs Thursday through Saturday.

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Tuesday, indexes bounced lower as volatility loosens any market forces.

WHY do I keep mentioning the Fed’s Powell and Friday’s press conference because … it will/ could shape market sentiment in the SHORT term.

All time low:

• bluebird bio (BLUE) at $0.659

Q2/24 Earnings:

RegMed Investors (RMi) - Q2/24 Cell and Gene Therapy Earnings Scorecard Results

… https://www.regmedinvestors.com/articles/11628

RegMed Investors (RMI) Research Note: Harvard Apparatus RT (OTCQB: HRGN) Chronicles: Reports Q2/24 results … https://www.regmedinvestors.com/articles/13580

• After a Research Note Monday, OTCQB: HRGN closed down -$0.05 with 50 shares traded to $2.25 and traded flat on Tuesday.

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

Q3/24

• August: 1 neutral, 5 positive and 8 negative closes

• July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

Tuesday’s Closing Down (10 of 24):

• Blueprint Medicine (BPMC -$2.50 after Monday’s -$2.21),
• BioLife Solutions (BLFS -$0.85 after Monday’s +$0.57)
• Ultragenyx Pharmaceuticals (RARE -$0.77 after Monday’s +$0.73),
• CRISPR Therapeutics (CRSP -$0.76 after Monday’s +$1.98),
• Regenxbio (RGNX -$0.61),
• Beam Therapeutics (BEAM -$0.47 after Monday’s +$0.57),
• Sage Therapeutics (SAGE -$0.39 after Monday’s +$0.60),
• Adverum Biotechnologies (ADVM -$0.34),
• Mesoblast (MESO -$0.33),
• Ionis Pharmaceuticals (IONS -$0.31 after Monday’s +$1.18),

Flat or dropped (3):

• Bellicum Pharmaceuticals (BLCM)
• Harvard Apparatus RT (OTCQB: HRGN $0.00 after Monday’s -$0.05
• Homology Medicine (FIXX)

Tuesday’s Closing Up (8 of 8):

• Alnylam Pharmaceuticals (ALNY +$6.28 after Monday’s +$6.24),
• Voyager Therapeutics (VYGR +$0.29),
• uniQure NV (QURE +$0.21 after Monday’s -$0.04)
• Cellectis SA (CLLS +$0.17),
• Verve Therapeutics (VERVE +$0.11),
• AxoGen (AXGN +$0.06),
• Solid Biosciences (SLDB +$0.05),
• Fate Therapeutics (FATE +$0.04)

The BOTTOM LINE: The Russell 2000 lost about 1% as afternoon traded-off while the Russell 2000 has dropped nearly 5% on the month.

• Cell and gene therapy stocks dived Tuesday after popping Monday after last week's gains, pain and a neutral share pricing as a measure of calm returns – hope springs eternal but, not a technical factor.

investors will also keep a watchful eye on the Democratic National Convention, which kicks off on Monday and could bring more insight into what to expect from presidential nominee Kamala Harris.

Summer has proven itself to be a wild week for markets, with highs, lows, and neutral closes.

After a mixed week … Small caps are shining today, Monday, with the Russell 2000 up 1%.

• As “uncle algo and his electronic dwarfs” wobbled last week’s pricing neutral, pumped 2 sessions and dumped 2 sessions of the cell and gene therapy sector’s share pricing!
• Last week slowed with the sector’s Friday neutral close after Thursday’s positive close following Wednesday’s negative close, Tuesday’s positive close and Monday’s negative close.
• Following the previous week’s Friday’s decline and the previous Thursday’s incline after drooping on Wednesday following Tuesday’s pop and Monday’s decline in a new week …

The up/downs in sessions could be a preview of the rest of the month, quarter and year …

• Economic concerns, geopolitical conflict and the looming November elections could keep investors on edge in the coming months.

Q3 and August's 3rd (full) week:

• Tuesday ended with a negative close of 8 incliner, 24 decliners and 3 flats
• (8/19) Monday ended with a positive close of 27 incliner, 6 decliners and 2 flats

Electronic trading pops and flops the cell and gene therapy sector

• There is evidence of a slower … slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into 2H/24.

The top three (3) performing in the session: 

• Tuesday: Alnylam Pharmaceuticals (ALNY), Voyager therapeutics (VYGR) and uniQure NV (QURE)
• Monday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BPMC) and CRISPR Therapeutics (CRSP)

The worst three (3) in the session: 

• Tuesday: Blueprint Medicine (BPMC), BioLife Solutions (BLFS) and Ultragenyx Pharmaceuticals (RARE)
• Monday: Agenus (AGEN), Harvard Apparatus RT (OTCQB: HRGN) and Lenz Therapeutics (LENZ)

Welcome to my world of defining the “grey’ in our universe!

• Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”

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. Regulation Analyst Certification (Reg AC): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and it’s or their securities.

I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.