December 14, 2023 8:18am

After Wednesday’s upside dramatic upside move, will the curtain come down?

Pre-open Indications: 3 Positive, 1 Negative and 4 Sell into Strength Indications

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Sentiment comes like tsunami on Wednesday; will it then flee on Thursday, Friday or next week? My usual question, are we facing a prisoner’s dilemma - a situation wherein algorithms acting with electronic trading interest do not achieve a continued optimal outcome for this sectors investor group.

 

The pre-open Dow futures are UP +0.30% or (+113 points), the S&P is UP +0.33% or (+15 points) as the Nasdaq is UP +0.39% or (+65 points)

U.S. stock futures climbed Thursday,

European markets were was up 1.5% by early afternoon,

Asia-Pacific equity markets ended mixed.

 

Henry’omics:

We need to more than consider the economic environment to comprehend the micro re “our” universe of cell and gene therapy companies …

Wednesday, the Dow jumped by 1.4% or +512.30 points to 37,090.24, the S&P 500 finished +63.39 points or +1,37% to 4,700 for the first time since January 2022, while the Nasdaq gained nearly 1.38% or 200.57 points to 14,733.96 … all three major indexes all rose to new 52-week highs

Economic Data Docket: Initial jobless claims (221,000 expected, 220,00 previously); Retail sales, month-over-month, November (-0.1% expected, -0.1% previously); Retail sales, ex auto and gas, November (0.2% expected, +0.1% previously); Import prices, month-over-month, November (-0.8% expected, -0.8% previously); Export prices, month-over-month, November (-1.0% expected, -1.1% previously)

 

Wednesday, RegMed Investors (RMi) Closing Bell: “Boom, uncle algo(rithm) and his electronic dwarfs are b a c k.  After loading up on a bag of dramatic upside for a later take down, take the upside and punt; one doesn’t realize appreciation until a sale.” … https://www.regmedinvestors.com/articles/13245

  

Q4:  December – 5 positive and 4 negative closes

  • November – 11 positives, 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: 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 Indication:

Wednesday’s closing price, some Tuesday, Monday, Friday, Thursday, Wednesday, Tuesday, Monday and last Friday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Blueprint Medicine (BPMC) closed up +$0.17 after Wednesday’s +$4.01, Monday’s +$7.01, Friday’s +$0.20, Thursday’s +$1.36 and last Wednesday’s -$0.89 following the previous Tuesday’s +$0.59 with a positive +$0.033 or +0.04% pre-open indication.

BioLife Solutions (BLFS) closed up +$1.19 after Tuesday’s -$0.17, Monday’s -$0.39), Friday +$0.54 and last Thursday’s -$0.32 followed by the previous Wednesday’s -$0.24, with a neutral $0.00 pre-open indication

Prime Medicine (PRME) closed up +$1.23 after Tuesday’s -$0.58, Monday’s -$0.35, Friday’s -$0.06, and last Thursday’s +$0.17 following the previous Wednesday’s +$0.54 with a neutral pre-open indication.

Ultragenyx Pharmaceuticals (RARE) closed up +$1.32 after Tuesday’s +$2.81, Monday’s +$0.16, Friday’s -$0.96 and last Thursday’s +$0.31 followed by the previous Wednesday’s -$0.90, Tuesday’s +$0.79 after Monday’s +$1.09 with a neutral pre-open indication.

 

Negative Indications:

Wednesday’s closing price, some Tuesday, Monday, Friday, Thursday, Wednesday, Tuesday, Monday and last Friday’s closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Alnylam Pharmaceuticals (ALNY) closed up +$4.64 after Tuesday’s +$2.96 and Monday’s +$0.88), -$7.22 and last Thursday’s +$2.24, followed by the previous Wednesday’s +$4.65, Tuesday’s -$2.50 and Monday’s +$1.36 with a negative +$0.19 or -0.11% pre-open indication

 

Positive Indications:

Wednesday’s closing price, some Tuesday, Monday, Friday, Thursday, Wednesday, Tuesday, Monday closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Beam Therapeutics (BEAM) closed up +$2.24 after Tuesday’s -$0.61, Monday’s +$0.25, Friday -$2.35 and last Thursday’s -$0.08 followed by previous Wednesday’s +$0.42, Tuesday’s -$1.31 and Monday’s -$0.01 with a +$0.60 or +2.12% pre-open indication

CRISPR Therapeutics (CRSP) closed up +$3.31 after Monday’s -$2.16, Monday’s -$4.26, Friday’s -$5.67, and last Thursday’s -$0.93 followed by the previous Wednesday’s +$0.54, Tuesday’s -$0.91 with a positive +$1.20 or +1.95% pre-open indication.

Intellia Therapeutics (NTLA) closed up +$2.24 after Tuesday’s -$0.20, Monday’s -$0.67, Friday’s -$0.76, and last Thursday’s -$0.08 following previous Wednesday’s -$0.04 with a positive +$1.51 or +4.97% pre-open indication

 

The BOTTOM LINE:  Repeat, again, and again – I say … what changes … as I reiterate … “I remain a skeptic, as electronic trading remains the impetus to, I believe a cell and gene therapy sector’s artificial high” … as proven today yet again!

  • If Jerome Powell Fed Chair sees an “uncertain" path forward” – I agree as the impetus to drive the ascension of the cell and gene therapy sector … came out of now where after many CRISP
  • I say the emperor’s new clothes i.e., driven equities get stripped after being cut to pieces suddenly their seeing sunlight … but, what’s next?
  • I warned that sector portfolios containing cell and gene therapy sector equities should consider getting defensive” … “Investors NEED to start formulating their portfolio outlook into next year.”

Definitely …Not changing my “tune” … I remain a skeptic, thus maintaining; investors should consider getting defensive…

  • If dead wood or too struggling share pricings are in the portfolio; especially those desperately needing a financing, lacking a partner, restructuring and just wallowing in the market …
  • I am STILL waiting for catalysts to justify recent upside appreciation as some news sinks the share pricing other than algorithmic electronic trading!

While optimism for December remains high, some analysts worry the run-up has been too big, too fast. <The Street>

  • Again, it might be prudent to harvest and cash in some chips following the past month’s dramatic rally.
  • It’s up to you to decide!

 

Think, the CBOE Volatility Index, or VIX, edged higher on Wednesday, but after tumbling to the lowest level in nearly four years on Tuesday. When the market fear gauge is unusually low, it's a sign of excessive bullishness or complacency. That raises the risk of a market pullback. But it doesn't have to happen right away and it doesn't have to be deep or long lasting. <IBD and amended by Me>

 

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

  • 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.