December 19, 2022 8:21am
Algorithms are hoping for an early holiday delivery after the “witch” departed on Friday
Indications: 2 Positive Indications, 2 Negative Indications and 1 sell into Strength
News: bluebird bio (BLUE ore-open +$0.27) the U.S. FDA lifted its partial clinical hold for patients under the age of 18 in studies evaluating lovotibeglogene autotemcel (lovo-cel) for sickle cell disease (SCD).
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!
The Christmas holiday is starting for me with a limited review for the week, the 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 +0.19% or 64 points), S&P futures are UP +0.28% or (+11 point) and NASDAQ futures are UP +0.39% or (+44 points) early in the pre-open – so far,
Stock futures rose Monday after the major averages posted their second straight week of losses,
European markets inched higher,
Asia-Pacific markets traded lower.
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Last week, indexes fell in the wake of the Fed’s 50 basis point interest rate hike on Wednesday — the highest rate in 15 years and fear of upcoming recession.
Friday, the Dow closed DOWN -281.76 points (-0.85%), the S&P closed DOWN -43.39 points (-1.11%) while the Nasdaq closed DOWN -105.11 points (-0.97%)
For the week, the S&P 500 fell 2.08%, the Dow slipped -1.7% and Nasdaq slid -2.7%.
Economic Data Docket: The National Association of Home Builders survey, which gauges monthly sentiment,
Friday’s (9/16) … RegMed Investors’ (RMi) closing bell: “sector extends losses as selling pressure continues. Options expiration, investors selling into year-end and algos taking the market and sector down.” … https://www.regmedinvestors.com/articles/12748
Ebb and flow:
Q4 – December – 8 negative and 4 positive closes
· November -1 holiday, 14 negative and 8 positive closes
· October -1 neutral, 11 positive and 9 negative closes
· 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
I questioin any follow through with ... some early "spirit" for sector equities
BioLife Solutions (BLFS) closed down -$1.19 to $17.58 after Thursday’s -$0.63 and Wednesday’s -$0.52 with a negative (Friday) aftermarket indication of -$0.95 or -5.40%. One-month return of BLFS was -11.46%, and its shares lost 48.63% of their value over the last 52 weeks with a market capitalization of $802.718 million.
Editas Medicine (EDIT) closed up +$0.26 to $10.27 with a negative -$0.03 or -0.29% pre-open indication. Another initial sickle cell clinical data company.
bluebird BLUE) closed down-$0.08 to $7.70 with a positive +$0.27 or +3.51% pre-open indication.
Verve therapeutics (VERV) closed down -$0.25 to $19.27 after Thursday’s -$3.09, Wednesday’s +$0.16, Tuesday’s -$0.32 and Monday’s +$1.12 with a positive pre-open indication of +$0.58 or +3.01%.
Sell into Strength:
Vericel (VCEL) closed up +$0.53 to $24.56 after Thursday’s -$1.74, Wednesday’s +$1.22 and Tuesday’s +$0.99 with a positive (Friday) +$1.59 or +6.92% (Friday) aftermarket indication
The BOTTOM LINE: I try to keep it simple and short!
The weekly percentage losses on the cell and gene therapy sector were large, but the damage has been far worse.
If you're buying on weakness, you might be jumping onto a sinking ship.
The sector suffered heavy damage last week in the wake of a hawkish Fed outlook, weak economic data and concerns that the Fed will drive the economy into a recession while the Nasdaq closed the week below its 50-day moving averages.
Be prepared … just 9 trading days remain in 2022.
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.
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.