RegMed Investors’ (RMi) pre-open: Warning, new month with end of 2023 in sight

December 1, 2023 7:43am

Start cutting non-dependable sector equities (re appreciation) as many will be seeking capital market access, so be cautious about upcoming offering, discounts and restructurings!

Subscription is coming, it is not conscription but, an offer to join our collective of like-minded investors!  Join me … in the NO spin zone.

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Never leave an investor uninformed!

I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

The pre-open Dow futures are UP +0.10% or +35 points), the S&P is DOWN -0.09% or (-4 points) as the Nasdaq is DOWN -0.28% or (-45 points)

Stock futures were mixed on Friday morning, 12/1/23,

European markets were higher,

Asia-Pacific markets were mixed allowing the economic data from across the region.

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 …

Indexes showed mixed results on the last day of November … as the Dow closed UP +520.47 points or +1.47%, the S&P closed UP +17.22 points or +0.38% while the Nasdaq closed DOWN -32.27 points or -0.23%.

Stocks finished off a record November during Thursday’s session and snapped a three-month losing streak. The S&P and Nasdaq rallied 8.9% and 10.7%, respectively, to notch their best monthly performances since July 2022. The Dow surged 8.8% for its best month since October 2022.

Economic Data Docket: Fed chief Powell will speak Friday, while investors also will get manufacturing and construction data soon after the open.

Thursday, RegMed Investors (RMi) Closing Bell: “November is over, wrapping up a best month since 2022” … https://www.regmedinvestors.com/articles/13226

RegMed Investors (RMi) Research Financing Note: Verve Therapeutics (VERV) has priced its public offering of 12.5 M shares at $10.00 … https://www.regmedinvestors.com/articles/13223

RegMed Investors (RMi) - Q3/23 Cell and Gene Therapy Earnings Scorecard Results … https://www.regmedinvestors.com/articles/11628

Q4: 1st session

November – 11 positive, 1 holiday and 10 negative closes

October – 1 sick day, 9 positive and 12 negative closes

Companies in my headlights – It’s your decision; I provide ideas and context: 

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.

Yet again, I am passing on forecasting the daily indications; it’s just mixed signals, followed by a weak aftermarket as markets follow November’s end … take gains as to those who WILL seek to recapitalize cash positions by discounted stock and pricing offerings!

The BOTTOM LINE:  What has changed, just those who are up and down swapping roles …

• I STILL believe some cell and gene therapy sector upsiders are … overbought.
• Investors should consider getting defensive.
• I am STILL waiting for catalysts to justify recent upside appreciation as some news sinks the share pricing other than algorithmic electronic trading!
• I also DON’T believe totally in the THIS market -- it’s usually a signal to lighten the load of the sector’s upside movers.
• Being that I have concerns over the resiliency of upside moves that usually end in downward sells as the risk/reward profile doesn’t always compel elevated and “dramatic” i.e., sudden equity pricing.

It might be prudent to harvest and cash in some chips following the past month’s dramatic rally.

Today’s relevancy from Thursday’s session:

• Market breadth was decent, NYSE while the Nasdaq was roughed-up the sector to close negative.
• The small-cap Russell 2000 climbed 0.3%, though it once again hit resistance at the 200-day line.
• The Nasdaq fell 0.2%, but came well off intraday lows.
• The 10-year Treasury yield rose eight basis points to 4.35%, rebounding despite cooling inflation figures. The benchmark Treasury bond rate is still down 12 basis points this week.
• After big November gains pushed the Nasdaq up toward 52-week highs, a modest pullback would be normal and healthy. It would let the Nasdaq take a breather while growth stocks forge some decent handles. But the pullback could end up being more serious, especially if Treasury yields bounce back sharply. <IBD>
• Investors should be very cautious, holding to some positions and building cash if possible!

Interesting backgrounder:

• Commerce Department reported … consumer spending, which accounts for more than 2/3’s of U.S. economic activity, increased 0.2% last month in line with economists' expectations. The annual inflation increase was the smallest in more than 2-1/2 years, signaling cooling demand.
• But consumer debt is also expanding exponentially

So, it's time to think ahead to December. It's usually an important month for the Nasdaq.

• But, don’t FORGET portfolio tax selling and a bit of rebalancing
• And then comes January and with worries that the U.S. economy will be slowing down, the potential for continued Middle East violence and, of course, the real prospect of bitterly contested elections across all of the United States. <The Street>

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.