August 28, 2024 6:00pm

How does the sector search for direction in a dry well?

Again, no pre-open post as market and sector couldn’t see beyond their eyelids; being too dependent bracing for Nvidia (NVDA) Day earnings

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.”

 

Wednesday: The Dow closed DOWN -159.08 points or -0.39%, the S&P closed DOWN -33.62 points or -0.60% while the Nasdaq closed DOWN -198.79 points or -1.12%

  • As compared with Tuesday ... The Dow closed UP +9.98 points or +0.02%, the S&P closed UP +8.96 points or +0.16% while the Nasdaq closed UP +29.06 points or +0.16%
  • As compared with Monday’s … The Dow closed UP +65.44 points or +0.16%, the S&P closed DOWN -17.77 points or -0.32% while the Nasdaq closed DOWN -152.03 points or -0.85%

 

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 …

  • Stocks pulled back Wednesday, pressured by a decline in Nvidia (NVDA).
  • Cell and gene therapy sector dived again after a brutal Tuesday and a positive Monday

 

Wednesday’s advance/decline line at the open was negative with 9 incliners, 21 decliners and 5 flats; ending with a negative close of 10 incliner, 23 decliners and 2 flats

  • Tuesday’s advance/decline line at the open was negative with 6 incliners, 26 decliners and 3 flats; ending with a negative close of 8 incliner, 22 decliners and 5 flats
  • As compared with Monday’s advance/decline line at the open was positive with 24 incliners, 8 declined and 3 flats; at 10:30 a.m., a dramatic decline occurred with a negative 9 incliners, 22 decliners and 4 flat ending with a positive close of 18 incliner, 13 decliners and 4 flats

 

Metrics:

Wednesday, the IBB was down -0.06% and the XBI was down -0.52% while the VIX was up +1.68 point or up +10.89% at 117.11

  • Tuesday, the IBB was down -0.01% and the XBI was down -0.62% while the VIX was up +0.62 point or up +4.19% at 15.42
  • As compared with Monday: the IBB was down -0.07% and the XBI was up +0.19% and the VIX was up +1.30 point or +8.78% at 16.10

 

RegMed Investors (RMi) Research Note: Harvard Apparatus RT (OTCQB: HRGN) raises $5 M without name identification … https://www.regmedinvestors.com/articles/13590

 

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

Q3/24

  • August: 1 neutral, 8 positive and 11 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

 

Wednesday’s Closing Down (10 of 23):

  • Vericel (VCEL -$0.99 after Tuesday’s +$3.62 after Monday’s +$0.65),
  • CRISPR Therapeutics (CRSP -$0.76 after Tuesday’s -$0.93 after Monday’s +$0.48),
  • Intellia Therapeutics (NTLA -$0.59 after Tuesday’s -$0.64 after Monday’s -$0.05),
  • Agenus (AGEN -$0.52 after Tuesday’s -$0.24),
  • BioLife Solutions (BLFS -$0.50),
  • Solid Biosciences (SLDB -$0.40 after Tuesday’s -$0.31 after Monday’s -$0.10),
  • Blueprint Medicine (BPMC -$0.39 after Tuesday’s -$1.94 after Monday’s +$0.53),
  • Adverum Biotechnologies (ADVM -$0.32 after Tuesday’s -$0.23 after Monday’s +$0.15),
  • Beam Therapeutics (BEAM -$0.24 after Tuesday’s -$0.82 after Monday’s +$0.30),
  • Sage Therapeutics (SAGE -$0.21),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Homology Medicine (FIXX)

Wednesday’s Closing Up (10 of 10):

  • Ionis Pharmaceuticals (IONS +$0.90 after Tuesday’s +$1.55 after Monday’s -$0.12),
  • Alnylam Pharmaceuticals (ALNY +$0.44 after Tuesday’s +$11.22 after Monday’s -$3.50),
  • Verve Therapeutics (VERV +$0.35),
  • Harvard Apparatus RT (OTCQB: HRGN +$0.29 after Tuesday’s +$0.30 after Monday’s $0.00),
  • Ultragenyx Pharmaceuticals (RARE -$0.17 after Tuesday’s +$0.57 after Monday’s +$0.30),
  • Regenxbio (RGNX +$0.15 after Tuesday’s -$0.50 after Monday’s -$0.02),
  • Lenz Therapeutics (LENZ +$0.10),
  • MiMedx (MDXG +$0.04),
  • Mesoblast (MESO +$0.01),
  • Brainstorm Cell Therapeutics (BCLI +$0.0061),

 

The BOTTOM LINE: Wham, bam the sector got slammed - again.

Popped on Monday, wrecked on Tuesday and scuttled on Wednesday …

  • As volume lower on the Nasdaq exchange compared with the same time on Tuesday.

 

The cell and gene therapy sector are entering "a pretty ugly seasonal period historically.

 

Wednesday and Tuesday dived into the red after Monday closed in the green.

  • Cell and gene therapy share pricing ascended last Friday – thank you Jerome and “uncle algo and his electronic trading dwarfs) after Thursday was shucked like corn after jumping on Wednesday after diving Tuesday after popping Monday neutral share pricing
  • As “uncle algo and his electronic dwarfs” left the previous week’s Friday’s closing sector pricing neutral, pumped 2 sessions and dumped 2 sessions of the cell and gene therapy sector’s share pricing!
  • The second week of the month 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 1st week of August’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 …

 

Quotes to ponder: from Morgan Stanley Wealth Management managing director Dan Skelly …

"When you look at what's happened over the last six weeks or so, it's, in our view, as if the technicals took the market down the elevator quite quickly a few weeks ago.

  • And then some reaffirmation of the soft landing and the fundamental broadening out of earnings power across not just tech, but the rest of the market, has actually taken the market back up the elevator."
  • Moving forward, he expects the theme of broadening out to continue. However, the election could cause volatility as there is an overall mixed picture on its outcome.
  • He says, "while some folks are trying to put together an election-related narrative and how that pertains to the markets, I think the market is saying actually one of two things.
  • One, the market is saying this is going to be a lot closer election than a lot of people may be thinking, and there's no real conclusion to draw as of now.
  • And I agree with that personally.
  • And then secondly, the market is really paying attention to the fundamental economic data."

 

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.

 

Reiterating, “There’s more room for “tactical downside in the weeks to come as we enter the gauntlet of the weakest two months and only consecutive losing months for equities, with markets at all-time highs.”

 

Q3 and August’s 4th and final days of week:

  • Wednesday ended with a negative close of 10 incliner, 23 decliners and 2 flats
  • Tuesday ended with a negative close of 8 incliners, 22 decliners and 5 flats
  • (8/26) Monday with a positive close of 18 incliners, 13 decliners and 4 flats

 

The top three (3) performing in the session: 

  • Wednesday: Ionis therapeutics (IONS), Alnylam Pharmaceuticals (ALNY), and Verve Therapeutics (VERV)
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and Ionis therapeutics (IONS)
  • Monday: BioLife Solutions (BLFS), Vericel (VCEL) and Blueprint Medicine (BPMC)

The worst three (3) in the session: 

  • Wednesday: Vericel (VCEL), CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA)
  • Tuesday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Beam therapeutics (BEAM)
  • Monday: Alnylam Pharmaceuticals (ALNY), Lenz Therapeutics (LENZ) and MiMedx (MDXG)

 

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.