February 10, 2023 7:41am

Thursday the sector reversed having gotten shook down by the algos and electronic trading

Pre-Open Indications: 2 Positive Indications and 2 Negative Indications

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 -0.44% or (-147 points), S&P futures are DOWN -0.64% or (-26 point) and NASDAQ futures are DOWN -1.10% or (-136 points) early in the pre-open – so far

U.S. stock futures were lower Friday,

European markets were lower,

Asia Pacific markets were lower

 

Henry’omics:

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

Indexes dropped like a boulder in water on Thursday, giving up gains as concerns over the Fed future moves on monetary policy offset excitement around the latest batch of corporate earnings and terminations by tech corporations.

The Dow closed DOWN -248.71 points (-0.73%); the S&P closed DOWN -36.33 points (-0.88%) while the Nasdaq closed DOWN -120.94 points (-1.02%)

Economic Data Docket: The University of Michigan will issue its preliminary consumer sentiment reading for February.

 

Thursday’s (2/9) … RegMed Investors’ (RMi) closing bell: just when the sector’s oversold needed recognition, it was rejected by any sentiment but, acknowledged by electronic trading. As I stated this a.m., “any breakout is a false hope with the inevitable downside re-occurring” … https://www.regmedinvestors.com/articles/12826

 

Ebb and flow:

Q1/23 – February – 4 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

Positive Indications:

Sage Therapeutics (SAGE) closed down -$0.01 to $44.80 with a positive +$1.71 or +3.82% aftermarket indication

Verve Therapeutics (VERV) closed down -$0.72 to $20.40 after Wednesday’s -$1.56 with a +$0.19 or +0.93% aftermarket indication.

 

Negative indications:

CRISPR Therapeutics (CRS) closed down -$2.31 to $51.08 after Wednesday’s -$2.28 with a negative -$0.52 or -1.02% pre-open indication.

Intellia Therapeutics (NTLA) closed down -$2.01 to $41.10 after Wednesday’s -$1.71 with a negative -$0.95 or -2.31% pre-open indication.

 

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

What a week to date, Thursday and Wednesday were down, Tuesday was up and down while Monday flopped.

It's not surprising to find that the aftermarket and pre-open indications “numbers” will generally prime the sector.

The market and sector “gyrate” as algorithms and electronic trading satisfies the lust for returns in quant and hedge funds. 

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

·         Ionis Pharmaceuticals (IONS) 2/22 – Wednesday

·         Ultragenyx Pharmaceuticals (RARE) 2/22- Wednesday

·         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.