February 3, 2023 7:34am

Reiterating, “What goes up with ceremony, goes down with disdain followed by the opposite effect”. The market rally has come on strong in 2023. It's possible that the Nasdaq is due for some sort of pause.

Pre-Open Indications: 2 Positive Indications and 7 Sell into Strength

It’s an honor to be considered the “canary in the (sector) coal mine”! It’s more than opinion, the facts and truth need to be recognized!

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! Subscription is coming, it’s not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

The 8:00 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. My interpretation of the morning’s numbers is written to be informative; it’s built on will happen behind the headlines today, not tomorrow or yesterday …

 

Dow futures are DOWN -0.22% or (-75 points), S&P futures are DOWN -0.60% or (-25 point) and NASDAQ futures are DOWN -1.04% or (-134 points) early in the pre-open – so far

Stock futures are sliding on Friday,

European markets retreated,

Asia-Pacific markets traded mixed.

 

Henry’omics:

We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …

Indexes closed mixed as the Dow fell, the S&P and Nasdaq added value.

The Dow closed DOWN -39.02 points (-0.11%), the S&P closed UP +60.55 points (+1.47%) while the Nasdaq closed UP +384.50 points (+3.25%)

Economic Data Docket: January’s nonfarm payrolls, which are due out from the U.S. Bureau of Labor Statistics at 8:30 a.m. ET.

 

Thursday’s (2/2) … RegMed Investors’ (RMi) closing bell: “Groundhog Day, share pricing saw its shadow following-through with a positive sector close.” …  https://www.regmedinvestors.com/articles/12815

 

Ebb and flow:

Q1/23 – February – 2 positive closes

·         January – 2 holidays, 11 positive and 9 negative closes

Q4/2022

·         December – 1 holiday, 13 negative and 8 positive closes

·         November -1 holiday, 14 negative and 8 positive closes

·         October -1 neutral, 11 positive and 9 negative closes

 

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

Positive Indications:

Solid Biosciences (SLDB) closed down-$0.03 to $7.51 with a positive +$0.25 or +3.33% aftermarket indication.

Intellia Therapeutics (NTLA) closed up again +$1.45 to $44.60 after Wednesday’s +$0.71 Tuesday’s +$2.32 and Monday’s -$1.51 with a positive +$0.91 or +2.04% pre-open indication

 

Sell into Strength:

Alnylam Pharmaceuticals (ALNY) closed up +$4.84 to $229.75 after Wednesday’s -$1.49, Tuesday’s +$1.00 and Monday’s -$5.97 with a negative -$5.47 or -2.38% aftermarket indication

Prime Medicine (PRME) closed up +$2.35 to $20.00 with a negative -$0.04 or -0.20% aftermarket indication.

Ultragenyx (RARE) closed up +$2.10 to $47.34 with a negative -$2.33 or -4.92% aftermarket indication.

Vericel (VCEL) closed up +$2.97 to $31.34 after Wednesday’s +$0.90 with a negative -$1.56 or -4.98% aftermarket indication

Verve Therapeutics (VERV) closed up +$1.94 to $24.01 after Wednesday’s -$0.68 with a positive +$0.48 or +2% aftermarket indication

Beam Therapeutics (BEAM) closed up again +$2.82 to $48.79 after Wednesday’s +$2.52, Tuesday’s +$2.32 and Monday’s -$1.51 with a negative -$0.61 or -1.25% pre-open indication

CRISPR Therapeutics (CRSP) closed up +$3.79 to $56.12 with a negative -$1.02 or -1.82% pre-open indication.

 

The BOTTOM LINE: I try to keep it simple and short!

The market and sector “gyrate” as algorithms and electronic trading satisfies the lust for returns in quant and hedge funds.  I STILL don’t think it’s a good time to add exposure.

I do NOT believe there aren't a lot of cell/gene therapy companies in position yet – UNTIL earnings (Q4) are reported – any breakout is a false hope with the inevitable downside re-occurring.

I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product.

And I can always be WRONG but, mostly EARLY!

Upcoming Q4 earnings reporting will present challenges to share pricing.

·         Sage Therapeutics (SAGE) 2/16 - Thursday

·         Alnylam Pharmaceuticals (ALNY) 2/23 - Thursday

So be cautious about adding exposure and stick to loss-cutting rules.

A couple of companies have become … black holes … of investor sentiment; yet, some get financing to continue the chain around investors’ necks until they recognize it could be forever with “some” of these equities.

 

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.