August 24, 2023 7:34am
4 positives followed by 6 negative closes; think algos and electronic trading will stay involved?
If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing.
Pre-open Indications: 1 Negative and 3 Sell into Strength
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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 -0.02% or (-7 point), S&P futures are UP +0.65% or (+29 points) and NASDAQ futures are UP +1.28% or (+193 points) early in the pre-open – so far
Futures on the S&P 500 and Nasdaq rose Thursday while the Dow was descending,
European markets were modestly higher,
Asia-Pacific markets rose with Hong Kong stocks leading regional gains.
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 …
Wednesday, indexes climbed as The Dow closed UP +184.35 or +0.54%, the S&P closed UP +48.48 or +1.10% while the Nasdaq closed UP +215.16 points (+1.59%).
Economic Data Docket: awaiting comments from Fed Chair Powell from Jackson Hole, Wyoming, on Friday, which hopes will provide insight toward the path of benchmark interest rates
Wednesday’s (8/23) RegMed Investors’ (RMi) closing bell: “equites up, employees down. AGEN is NOT the first and NOT the last” … https://www.regmedinvestors.com/articles/13091
Ebb and flow:
Q3: August – 6 positive and 11 negative closes
· July - 1 holiday, 12 positive and 8 negative close
· June -1 Holiday, 8 negative and 11 positive closes
· May – 10 negative and 12 positive closes
· April ended - 1 holiday, 8 positive close and 11 negative closes
· 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
I post about “indication intelligence” devoting my time to collection and analysis of information to assist investors with insight into sector vulnerabilities and strengths. A dictionary definition of “indicate” refers to something less than a certainty; an indication could be a signal of being oversold or overbought, a recommendation, or grounds for inferring or a basis for believing.
Sell into Strength:
Wednesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Blueprint Medicine (BPMC) closed up +$0.41 after Tuesday’s -$1.21 and Monday’s +$1.26 with a positive +$0.56 or +1.13% aftermarket indication.
CRISPR Therapeutics (CRSP) closed up +$1.53 after Tuesday’s +$1.04 and Monday’s -$0.21 with a positive +$0.52 or +1.03% aftermarket indication.
Verve Therapeutics (VERV) closed up +$0.40, Tuesday’s -$0.05 after Monday’s -$0.06 with a positive +$0.43 or +3% aftermarket indication.
Tuesday’s closing price, aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Ionis Pharmaceuticals (IONS) closed up +$0.40 after Tuesday’s +$0.12 and Monday’s -$0.35 with a negative -$0.79 or -1.99% aftermarket 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!
Let’s get to the point, few adverbs and even fewer adjectives, no vacillating; I get right to the point, telling investors what has meaning and why news or indications matter.
My “posts” are conveyed with a simplicity of language to highlight what is informative. I am mostly an optimist, yet I also believe that patterns exist
It “ain’t” been a good August for the cell and gene therapy sector as it suffers 6 positive and 11 negative closes so far… which could also be a set-up for profit reaping in view of economic and inflation “readings”
I am NOT confident that some cell and gene therapy sector equities can continue ascending to the upside; unfortunately, it is a true “guessing” game!
Risk is riskier …
There's ALSO nothing wrong with standing pat in the short run, holding on to sizable existing exposure.
However, CONSIDER these quotes: The percentage of financial newsletter editors and advisors who see short-term weakness ahead in stocks surged to 37.1% in the latest weekly Investors Intelligence survey, up from 32.9% last week. The reading is the highest since the fall of 2022, after which the S&P 500 went on to fall to 3600 from 4280, the survey said.
“This group is raising cash after recently calling for a trading top,” II said. “The recent shifts want to lock in gains before they are gone.” Just last month, the number of advisors foreseeing a correction was the lowest since early January, “pointing to elevated risk and the need for defensive measures. This category looks for short term market weakness, and if declines continue their number could increase further. As cash is raised while markets fall, there is new fuel for the next rally,” said II.
The number of bulls continued to shrink, falling to 44.3% from 47.1% last week and a July high of 57.1%, which nearly matched the Nov. 2021 peak of 57.2%. Bears dropped to 18.6% from 20.0% a week ago. The spread between the numbers of bulls and bears narrowed to 25.7 points from 27.1 last week and a two-year high of 38.5 reached in July. <Scott Schnipper, CNBC>
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!
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.
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