June 21, 2023 7:38am
It’s still a struggle for direction; it’s what the cell and gene therapy sector does!
Pre-open Indication: 1 Positive, 1 Negative and 1 Sell into Strength
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 DOWN -0.07% or (-25 points), S&P futures are DOWN -0.07% or (-3 points) and NASDAQ futures are DOWN -0.16% or (-24 points) early in the pre-open – so far
U.S. stock futures were slightly lower on Wednesday,
European markets trade mixed;
Asia-Pacific markets mostly fell
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 …
Cell and gene therapy equities popped as indexes slid Tuesday as the Dow closed DOWN -245.25 points (-0.72%), the S&P closed DOWN -20.88 points (-0.47%) while the Nasdaq closed DOWN -22.28 points (-0.16%).
On-target quote, “Stocks are overbought and in need of a catalyst. Indeed, last week the S&P 500 hit its highest level since April 2022 and posted its fifth consecutive positive week. With the S&P 500 and Nasdaq marching higher and breaking through key resistance levels, and underpinned by stronger volume and broader participation, markets reached short-term overbought levels on Friday,” she said by email. ‘Triple witching’ options expiration on Friday added to volatility, but the sell-off on Friday wasn’t overly dramatic, leaving markets to digest their gains, and wait for another powerful catalyst.” <Quincy Krosby, chief global strategist for LPL Financial and CNBC>
Economic Data Docket: Fed Reserve Chair Powell is set to testify before the House Financial Services Committee at 10 a.m. ET.
Tuesday (6/20) … RegMed Investors’ (RMi) closing bell: “the cell and gene therapy sector is back to the upside as market cools. Sector equities gained steam on Tuesday, as investors experienced 3 down sessions out of 6 with a market holiday thrown after a two session break down.” … https://www.regmedinvestors.com/articles/13010
Ebb and flow:
Q2/23 – June: 1 Holiday, 4 negative and 9 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:
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
CRISPR Therapeutics (CRSP) closed down -$0.86 after Friday’s -$1.19 with a positive +$0.17 or +0.30%pre-open indication.
Negative Indication:
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Editas Medicine (EDIT) closed down -$0.46 after Friday’s -$0.46 after Thursday’s -$1.81 on the heels of an $125 M stock offering with a negative -$0.18 or -2.15% pre-open indication.
Sell into Strength:
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Blueprint Medicine (BPMC) closed up +$2.69 after Friday’s +$0.42 +$0.42, Thursday’s +$2.13, last Wednesday’s +$0.46 and the previous Tuesday’s +$0.67 and Monday’s -$0.84 with a flat 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 Nasdaq composite is still 8.6% above its 50-day line, with the Nasdaq 100 9.9% above that line, both significantly elevated.
Some cell and gene therapy sector equities will lag, but that isn't always obvious when the sector is running higher.
“If you do make new or add-on buys in the current climate, be ready to step back quickly. You can consider taking some partial profits in some extended names, though that depends on the size of your position, your overall exposure and your investing style.” <IBD>
Still suffering with a walking stick everywhere, “Had a “big” fight raking-out the loom and mulch, the rake won as I threw out my back – thank you Dr. Waller, chiropractor who more than popped me back into shape – some what after, being flat on my back for three (3) days taught me a lesson.”
I 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.
