May 26, 2023 7:36am

Stop too soon and you lose whatever might have been gained by adding to exposure; hoping not to sacrifice gains and exhaust your sector optimism

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!  Never leave an investor uninformed! 

8:00 a.m. edition

The week and month of May trading sessions end – TGIF and holiday weekend

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 +0.17% or (+55 points), S&P futures are UP +0.21% or (+8 point) and NASDAQ futures are UP +35% or (+48 points) early in the pre-open – so far

Stock futures tipped-up slightly Friday,

European stock markets were higher,

Asia-Pacific markets are 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 …

US stocks were mixed on Thursday despite an ongoing standoff in debt ceiling negotiations.

Markets were also buoyed by economic news. Gross domestic product — the broadest measure of economic output — grew faster in the first three months of the year than previously estimated, the Commerce Department reported

So far, this week, the Dow is down -2%, the S&P 500 about -1%; while the Nasdaq has a small gain of -0.3%.

Economic Data Docket: personal consumer expenditures, personal income, consumer spending and sentiment and durable goods is also due.

 

Thursday (5/25) … RegMed Investors’ (RMi) closing bell: “another breakdown in sector’s share pricing. The take-away, don’t dwell on what’s happened but, learn the lesson of timing; if one had listened to me at week’s beginning, losses would have been profits.” …  https://www.regmedinvestors.com/articles/12976

 

Ebb and flow:

Q2/23 – May – 8 negative and 11 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

Risky week as debt ceiling throws share pricing to the airstreams – “wind sock wanted”

 

The BOTTOM LINE:

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all, as I try to keep it simple and short!

Quoting again, “Debt-ceiling negotiations are a lose-lose for equity investors at this point, as a failure to strike a deal will lead to an immediate recession, while a deal will strain liquidity from markets as the US Treasury issues trillions in new bonds, which are newly born.” <Jose Torres, Interactive Brokers>

After a sour day in Washington and markets, CNBC’s Jim Cramer warned investors that lawmakers will inevitably cost them money as debt ceiling negotiations drag on. “Get ready for our politicians to lose you some more money,” Cramer said, referencing the earlier impasse surrounding the debt ceiling in 2011. “They hurt you then. They aren’t done hurting you now. But unless you trade full time it’s very hard to get out and get back in early enough for it to make a difference, which means most of us need to take the pain.”

What changes, everything re debt ceiling and nothing as far as “sector divergence, weak breadth with many equities riding the roller-coaster makes adding exposure an issue.”

Not a lot of stocks are offering buying opportunities at the moment.

As I stated, I wouldn’t buy into ANY rally or weakness, I’d be selling. Remember, it's not the news that matters, it's the market reaction to the news.

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.