February 8, 2023 7:47am
Of too many unknowns and a weak aftermarket and pre-open indications
Pre-Open Indications: passing today
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 -0.31% or (-106 points), S&P futures are DOWN -0.35% or (-14 point) and NASDAQ futures are DOWN -0.17% or (-22 points) early in the pre-open – so far
U.S. stock futures slid Wednesday,
European markets were higher,
Asia-Pacific markets were mixed.
Henry’omics:
We need to understand the macro to comprehend the micro re “our” universe of cell and gene therapy companies …
Indexes closed near session highs after a volatile bout of trading on Tuesday; the Dow Jones jumped +0.78%, the S&P 500 rose +1.29% and the Nasdaq gained +1.9%.
Fed Chair Powell said Tuesday that” inflation is easing at an event at The Economic Club of Washington, D.C, reiterating comments from his press conference last week that raised investor hopes that the Fed will soon pause or pivot interest rate hikes. The major averages initially jumped during the remarks, before briefly falling into negative territory, and then closing higher.” <CNBC>
Economic Data Docket: wholesale inventories due out at 10 a.m. ET; economists are expecting a rise of 0.1% in December.
Tuesday’s (2/7) … RegMed Investors’ (RMi) closing bell: “the cell/gene therapy sector suffered tough love until late session to pop the A/D (advance/decline) Line positive. After the sector got whip-lashed again – thank you, Jerome; however, investors are fed-up waiting for CEOs and management teams to step-up to the plate and personally invest validating the management skills or lack there-of (AVRO is a prime example)!” … https://www.regmedinvestors.com/articles/12822
Ebb and flow:
Q1/23 – February – 2 negative and 3 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
NO spurs on the boots to ride this market – today.
The BOTTOM LINE: I try to keep it simple and short!
Tuesday was up and down Tuesday, especially after Fed chief Powell began speaking, but ultimately the cell/gene therapy sector closed with solid gains, near session highs
I felt a lousy response given by the president in the State-of-Union Address as President Joe Biden touted his economic record in his State of the Union speech Tuesday night. He also called for a special billionaire tax and quadrupling a tax on stock buybacks.
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.
