June 5, 2023 7:33am
Do rising number of leading indicators that indicate a recession coming soon, a question on a question?
Pre-open Indications: 1 Sell into Strength, 1 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.
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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 +0.12% or (+40 points), S&P futures are UP +0.07% or (+3 point) and NASDAQ futures are DOWN -0.10% or (-14 points) early in the pre-open – so far
U.S. equity futures were mixed on Monday, June 5, 2023
European markets were muted after ending on a high on Friday,
Asia-Pacific markets are largely higher.
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 …
On Friday, stocks rallied to end the week following strong jobs data for the month of May. The Dow jumped 2.1%, the S&P 500 rose 1.45%, while the Nasdaq climbed 1.1%.
Yet another question, “whether breadth can continue to improve, which could breathe new life into what had been a very narrow rally.” <Yung-Yu Ma, chief investment strategist at BMO>
Friday (6/2) … RegMed Investors’ (RMi) closing bell: “investors escaped the debt ceiling conflagration helping sentiment. However, inflation, risk, the Fed and coming Democratic manipulation of the new “deal” agreement by the administration has yet to felt.” … https://www.regmedinvestors.com/articles/12986
Ebb and flow:
Q2/23 – 2 positive closes
· May – 10 negative and 12 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
Positive Indication:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
uniQure NV (QURE) closed down -$0.55 with a positive +$0.80 or +3.99% pre-open indication
Sell into Strength:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Beam Therapeutics (BEAM) closed up +$1.52 with a $0.00 pre-open indication.
Negative indications:
Friday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Prime Medicine (PRME) closed up +$1.35 with a negative -$0.03 or -0.19% pre-open indication
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!
The stock market rally showed growing momentum this past week, with the major averages all making big moves. Market rally leadership remains narrow, concentrated in the artificial intelligence space, as well as chips and software. Many of those stocks are extended. But if market breadth continues to improve, a wider array of buying opportunities will develop. Although below the surface worries have been rising about an economic slowdown under the weight of much higher interest rates. <IBD>
Thus, I won’t be BUYING into a relief rally, anticipating a slide in share pricing and if there isn’t a Selling to-Strength.
Friday’s jobs report influenced expectations for the June Fed meeting. Rate hike odds plunged Wednesday as two Fed officials signaled, they favored a pause this month. Markets now see a 77% chance of a pause.
There is VALUE out there however, I am “parsing” and slowing forecasts anticipating a pullback or speedbump!
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.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. 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.
