April 22, 2024 7:27am

As cell and gene therapy sector’s equities struggles from April’s start and Friday’s aftermarket in its journey to Monday’s session

Other impediments are Q1/24 earnings season early beginning, the March reading of the Personal Consumption Expenditures index (on Thursday) and the Fed's preferred inflation gauge (on Friday)

Pre-open Indications: 1 Positive and 1 Negative Indications

Q1/24 Reporting Season: Sage Therapeutics (SAGE) on 4/25; MiMedx (MDXG) on 4/30, Alnylam Pharmaceuticals (ALNY), AxoGen (AXGN) and Blueprint Medicine (BPMC) on Thursday, 5/2;

Never leave an investor uninformed!

 

Remember that overnight and pre-open actions’ futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

Framing the main takeaway … pricing, volume and volatility; it also includes what happened or will happen beyond the headline which shapes today’s potential sector response as seen by RMi.

 

Monday: The pre-open Dow futures are UP +0.48% or (+182 points), the S&P futures are UP +0.48% or (+24 points) as the Nasdaq futures are UP +0.50% or (+86 points)

Stock futures pushed higher Monday, April 22, 2024,

European markets started the new trading week,

Asia Pacific markets rebound from Friday’s sell-off.

 

Henry’omics:

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

Friday: The Dow closed UP +211.02 points or +0.56%, the S&P closed DOWN -43.89 points or -0.88% while the Nasdaq closed DOWN -319.49 points or -2.05%

The Dow closed the week up 0.01%, the S&P 500 closed the week down 3.05% while the Nasdaq finished the week down 5.52%.

Economic Data Docket: Chicago Fed Nat Activity Index, March (+0.05 prior)

 

Friday night’s RegMed Investors (RMi) Closing Bell: “a tough week; tied to cross-currents of geopolitical conflicts and recurring inflation. The sector responds to markets skittishness and resulting declines.” …  https://www.regmedinvestors.com/articles/13426

 

Q2/24:  April - 13 negative and 2 positive closes

Q1/24:

  • March – 8 positive and 12 negative closes
  • February – 1 market holiday, 11 positive and 9 negative closes
  • January: 2 holidays, 11 negative and 8 positive closes

 

Companies in my headlights – It’s your decision; I provide ideas and context:

I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.

Positive Indications:

Friday, Thursday, Wednesday, Tuesday and last Monday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

Intellia Therapeutics (NTLA) closed up +$0.25 with a positive +$0.09 or +0.42% pre-open indication.

 

Negative Indications:

Friday, Thursday, Wednesday, Tuesday and last Monday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

Beam Therapeutics (BEAM) closed down -$0.41 after Thursday’s $0.00, Wednesday’s -$1.39 and Tuesday’s $0.00 with a neutral pre-open indication.

 

The BOTTOM LINE:   The lead, it's not quite the time to be buying sector stocks; investors should have slim-to-modest exposure, generally only keeping winners with a hefty cushion.

  • We need to get through earnings season to overview the initial releases for some strength!

The market's trend, in force since November, is over as the Nasdaq's 21-day exponential moving average undercut the 50-day line.

  • Most of the sector stocks have NOT held support, with a few making encouraging moves.
  • RegMed covered stocks are looking damaged or broken
  • The stock market and the cell and gene therapy sector suffered sharp losses in the past week.
  • Headline reports and guidance will have a huge impact on the sector and the overall market.

The CBOE Volatility index, or VIX, briefly spiked Friday to the market fear gauge's highest levels since late October. Meanwhile, various indicators suggest the market is significantly oversold. But it's been oversold for some time.

  • The major indexes are all well below their 50-day moving averages.

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!”
  • The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.
  • Never forget, one of my usual lines. “The sector is … still what it is, until it isn’t and even then, it doesn’t seem to be … that is after taking a deep breath and holding it.”
  • I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

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. All investments are subject to risks. Investors should consider investment objectives.

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.  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 its 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.

Henry McCusker, the editor and publisher of RegMed Investors could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.