December 13, 2022 8:45am
CPI is up +0.01% after being expected to increase +0.3% in November, with a year-over-year to -7.1%
Indications: 2 Positive Indications and 2 Negative Indications
News: Precigen (PGRN closed +$0.05 with a +$0.04 pre-market) presented positive P1 dose escalation data from the ongoing P1/1b clinical study of PRGN-3006 UltraCAR-T® in patients with r/r Acute Myeloid Leukemia (AML), a cancer that starts in the bone marrow, but most often moves into the blood and higher risk myelodysplastic syndromes (MDS) a disease of the bone marrow generally found in adults in their 70s
A daily report may say little or a lot and its final judgement may be inconclusive; yet it serves as insurance that all indications are being examined, evaluated and reported.
I write this blog/newsletter to inform investors with facts and supporting numbers focused on what they need to hear that others won’t say or write about - truth!
8:30 a.m. edition
Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session.
Dow futures are UP +2.27% or (+753 points), S&P futures are UP +2.47% or (+99 point) and NASDAQ futures are UP +2.99% or (+353 points) early in the pre-open – so far,
- Stock futures jumped after a lighter-than-expected consumer prices report,
- European stocks rally, British pound hits six-month high,
- Asia-Pacific stocks climb as Hong Kong scraps Covid restrictions for incoming travelers.
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes “hopped” Monday after last week’s losses, while traders pondered the anticipated CPI (inflation) numbers and Fed meeting outcomes.
- The Dow closed UP +528.58 points (+1.58%), the S&P closed UP +56.18 points (+1.43%) while the Nasdaq closed UP +139.12 points (+1.26%)
Economic Data Docket: Tuesday, the Labor Department released the November consumer price index at -0.01%.
- Overall and core CPI inflation rates should cool over the next several months, if only because comparisons are getting tougher. But services prices have been stubbornly strong.
- The Fed wants to see more-substantial declines on services inflation, as well as wage gains, before halting rate hikes. On Wednesday, at 2 p.m. ET, the Fed is expected to raise its fed funds rate by 50 basis points, to 4.25%-4.5%, ending a string of four 75-basis-point hikes.
Monday’s (12/912) … RegMed Investors’ (RMi) closing bell: “cell and gene therapy sector opened and closed higher as oversold were “recognized” in-front of CPI and Fed meeting report.” … https://www.regmedinvestors.com/articles/12740
Ebb and flow:
Q4 – December – 5 negative and 3 positive closes
· November -1 holiday, 14 negative and 8 positive closes
· October -1 neutral, 11 positive and 9 negative closes
Q3/22 –
· September – 1 holiday, 10 positive and 11 negative closes
· August – 1 neutral, 11 positive and 11 negative closes
· July - 1 holiday, 10 negative and 10 positive closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
Attention remains laser-focused on week’s busy economic calendar; there’s still a bit of hesitation in front of inflation data to really see the reality of the markets and cell and gene therapy sector ability or capacity to move upward.
Positive indications exist:
Precigen (PGRN) closed up +$0.05 to $1.61 with a positive +$0.04 or +2.48% aftermarket indication after presenting positive P1 dose escalation data from the ongoing P1/1b clinical study of PRGN-3006 UltraCAR-T® in patients with Acute Myeloid Leukemia (AML), a cancer that starts in the bone marrow, but most often moves into the blood.
Fate Therapeutics (FATE) closed down -$2.70 to $16.20 with a positive +$0.39 or +1.85% pre-open indication. FATE and GT Biopharma (GTBP) presented data shows the therapeutic potential of combining iPSC-derived CAR NK cells and NK cell engagers to overcome the clinical heterogeneity of AML
While negative indications were evident:
Avrobio (AVRO) closed flat at $0.70 – still on the de-listing list with a negative -$0.03 or -3.78% pre-open indication.
Chinook Therapeutics (KDNY) closed up +$1.54 to $24.23 with a negative -$1.05 or -4.33% pre-open indication.
The BOTTOM LINE: I try to keep it simple and short!
Reiterating from last night’s post, “There are clear winners today and fewer losers; the following paragraphs might be construed to be contrarian; yet, be prepared by what could or will happen as dictated by past weeks of market and sector “happenings”!
I hope you enjoyed yesterday’s rally; it could be an “The 'eye(s) of the tiger' moment, which refers to what the tiger's (algorithms) prey last sees prior to being killed. It's a reference to impending downfall of sector equities or the prey.
Be prepared … just 13 trading days remain in 2022.
The market and sector face a big technical test with inflation and Fed reporting playing a major role in how the week plays out.
“Sideways markets are among the most dangerous for investors, especially when there is volatility up and down. There's just enough strength on the upside to lure buyers in, but then the market swings lower for a time. That forces investors to either cut losses when they're small — with a good chance that stocks will rebound — or risk a much-bigger decline.” <IBD>
Until December 31, investors may want to be cautious about making new buys.
I’d be calculating selling for tax purposes amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in a constant correction." That means that … lately we are investors are safer on the sidelines.
The current choppy market rally has an added hurdle. Most of the advance has come on a handful of one-day sessions, so it's hard to have even mini-uptrends to build gains in new positions.
· Monday ended with a positive close of 30/3 and 2 flats.
· Friday ended with a negative close of 2/31 and 2 flat.
· Thursday ended with a positive close of 23/11 and 1 flat,
· Wednesday ended with a negative close of 16/19 and 0 flat,
· Last, Tuesday ended with a negative close of 5/30 and 0 flat,
Yet, it’s setting-up for those to bottom fish for December exits and new Year BUYS although it will be tough to get through the end-of-month sessions
Insight is about understanding perception and also about putting into context what is relevant to expectation fulfillment
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.
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 does not hold or have positions securities referred to in this publication.
