May 17, 2023 7:39am

Welcome to my world of defining the “grey’ in our universe!

Pre-open indications: 2 Positive and 1 Negative indications

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday.

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.

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 what will happen behind the headlines today, not tomorrow or yesterday

 

Dow futures are UP +0.41% or (+136 points), S&P futures are UP +0.35% or (+14 point) and NASDAQ futures are UP +0.19 % or (+27 points) early in the pre-open – so far

Stock futures are on the upswing on Wednesday,

Europe markets were lower,

Asia-Pacific markets were mixed.

 

Henry’omics:

We need to more than consider the economic environment - rising rates and inflation to comprehend the micro re “our” universe of cell and gene therapy companies …

Tuesday, indexes were mixed over debt ceiling worries as the Dow closed DOWN -336.26 points (-1.01%), the S&P closed DOWN -26.41 points (-0.64%) while the Nasdaq closed DOWN -22.16 points (-0.16%)

Economic Data Docket: housing starts and building permits

·         The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) increased to 6.57% from 6.48%. Mortgage applications to purchase a home dropped 4.8% last week, compared with the previous week. Applications to refinance a home loan fell 8% for the week.

 

Tuesday (5/16) … RegMed Investors’ (RMi) closing bell: “biotech, cell and gene therapy sector sinks. As Federal Trade Commission (FTC) puts a damper on biotech, cell and gene therapy equities blocking Amgen (AMGN -$2.28) acquisition of Horizon Therapeutics (HZNP -$16.93).” … https://www.regmedinvestors.com/articles/12962

 

Ebb and flow:

Q2/23 – May – 5 negative and 7 positive closes

·         April ended - 1 holiday, 8 positive close and 11 negative closes

Q1/23 –

·         March – ended with 10 positive and 13 negative closes

·         February – 1 holiday, 2 vacation, 7 negative and 8 positive closes

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

 

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

Negative Indications:

Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Blueprint Medicine (BPMC) closed down -$1.30 with a negative -$0.59 or -1.10% pre-open indication

 

Positive Indications:

Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Beam Therapeutics (BEAM) closed down -$2.13 with a positive +$0.54 or +1.59% pre-open indication

Sage Therapeutics (SAGE) closed down -$1.82 with a positive +$1.03 or +2% aftermarket indication.

 

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

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

Tuesday, Nasdaq reversed lower as small caps slump; yet, there is smoke in the chimney as Pfizer (PFE) is launching a jumbo bond sale, the fourth largest in the US.

What changes, certainly nothing as “sector divergence, weak breadth and many equities falling remain an issue.”

As I stated, I wouldn’t buy into ANY rally, I’d be selling.

The cell and gene therapy sector is defined by the words in the sentence from the title, “When you’re on a roller coaster, the only thing you can be sure of is you’ll end up back where you started>”

The ride could be interrupted as “slowing to the downside, as the FTC's moved to challenge the Amgen-Horizon deal could be a precedent for blocking many biotech takeovers. So that could affect biotech, cell and gene therapy stocks for some time.

Investors should STILL be hesitant to add to positions – go with flow.

I also hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be WRONG but, I am mostly EARLY!

At ANY time, this week, be ready to take partial profits and exit losers.

 

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.