November 3, 2023 8:05am
Should generate/initiate a profit taking for some holdings to build cash
Earnings: Editas Medicine (EDIT)
Pre-Open Indications: 2 Sell into Strength and 2 Negative Indications
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Never leave an investor uninformed!
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 could happen or materialize
The pre-open Dow futures are UP +0.04% or (+13 points), the S&P is DOWN -0.07% or (-3 points) as the Nasdaq is DOWN -0.22% or (-32 points)
Futures are mixed and fluctuating Friday a.m. week’s ed,
European stock markets were cautiously higher,
Asia-Pacific markets rose
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 …
Thursday’s session closed with the Dow’s best session since June with a 1.7% gain the Nasdaq posted its best day since July, rising about 1.8% as the S&P 500 notched its best day since April, up 1.9% as Treasury yields retreated.
On Thursday, ninety (90%) percent of the entire volume of shares that changed hands on the NYSE advanced in price, less than 10% declined; while on the Nasdaq some 82% of volume was higher while less than 18% was lower in price.
Economic Data Docket: October’s jobs report at 8:30 a.m. ET Friday. Economists expect nonfarm payrolls to rise by 179,000, cooling from September's 336,000. The now-ending UAW strike likely weighed on net jobs during the month. The jobless rate is expected to hold at 3.8%. Average hourly earnings are seen climbing 0.3%, with the yearly gain slowing to 4%.
Ebb and flow:
Q4: November – 2 positive closes
· October – 1 sick day, 9 positive and 12 negative closes
Companies in my headlights – It’s your decision; I provide ideas and context: looking for lost SHEAP …
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 Indications:
Thursday’s closing price, some Wednesday, Tuesday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
CRISPR Therapeutics closed up again +$2.43 after Wednesday’s +$4.82 and Tuesday’s $0.00 with a positive +$1.28 or +2.77% pre-open indication
Intellia Therapeutics (NTLA) closed up again +$0.98 after Wednesday’s +$0.45 with a positive +$0.01 or +0.04% pre-open indication
Thursday’s closing price, closing “number” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Cellectis SA (CLLS) closed up +$0.37 after Wednesday’s +$1.67 and Tuesday’s -$0.04 with a negative -$0.14 or -4.65% pre-open indication
Soid BioSciences (SLDB) closed up +$0.59 with a negative -$0.04 or -1.36% aftermarket indication
The BOTTOM LINE: Sell 'em ...
The jobs report follows mixed-to-weak economic reports during the week, which have helped rein in Treasury yields and fuel the new stock market rally. So strong October employment data could trigger a big negative reaction.
Today's jobs report could be key for Treasury yields, which remain the dominant market driver.
- 11/2 -The Dow closed UP +564.50 points or +1.70%, the S&P closed UP +79.82 points or +1.82% while the Nasdaq closed UP +232.72 points or +1.78%
- 11/1 - The Dow closed UP +221.71 points or +0.67%, the S&P closed UP +44.06 points or +1.05% while the Nasdaq closed UP +210.23 points or +1.64%
November’s Cel ad Gene Therapy Sector:
- Thursday’s advance/decline line ended with a positive close of 23 incliners, 9 decliners and 3 flats
- Wednesday’s advance/decline line ended with a positive close of 18 incliners, 16 decliners and 1 flat
While a bevy of sector earnings await next week,
A few stocks broke out:
- Thursday: Alnylam Pharmaceuticals (ALNY) – 2x, CRISPR Therapeutics CRSP) and Verve Therapeutics (VERV)
- Wednesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics CRSP) and Cellectis SA (CLLS)
And down with high volume
- Thursday: Ionis Pharmaceuticals (IONS), Blueprint Medicine (BPMC) and Sage Therapeutics (SAGE)
- Wednesday: Verve Therapeutics (VERV), Vericel (VCEL) and AxoGen (AXGN)
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”
Today’s relevancy from Thursday’s session and the week’s ending perspective:
- Forecasting short-term directional movements in the stock market with percentage (%) accuracy is impossible!
- Investors should be very cautious, largely holding cash!
What the sector patterns and markets are telling me:
- An aftermarket that reeks of know unknows
- A sentiment factor driven by algorithms and electronic trading,
- Remember, the closer we get to earnings releases <LPS or loss per share sweepstakes> the leaner gains or expressive losses are going to be!
- The ongoing Israel-Hamas war has raised questions of a potential oil supply crunch and a resulting rise in fuel prices if the geopolitical instability spreads to neighboring oil producers in the region.
I hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I am more frequently right than consequentially 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. 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 could hold or have positions securities referred to in this publication and he will NOTIFY investors of holdings.