December 18, 2023 8:06am

The week ahead should be quiet, leading up to the Christmas holiday as trading will trails-off Thursday and Friday

Pre-open Indications: 5 Positive

Monday marks the start of the final full trading week of 2023.

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Remember that overnight action in a.m. futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

One of my usual questions, 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 +0.19% or (+70 points), the S&P is UP +0.21 or (+9 points) as the Nasdaq is UP +0.06% or (+9 points)

U.S. stock futures were slightly higher Monday, December 18, 2023

European markets were flat lining,

Asia-Pacific markets were mostly lower.

 

Henry’omics:

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

On Friday, indexes closed mixed, the Dow closed UP +56.81 points or +0.15%, the S&P closed DOWN -0.36 points or -0.01% while the Nasdaq closed UP +52.36 points or +0.35%

Economic Data Docket: none

 

Friday, RegMed Investors (RMi) Closing Bell: “triple witching’ Friday as $5 trillion in expiring options collides with index-rebalancing mania” … https://www.regmedinvestors.com/articles/13249

  

Q4:  December – 6 positive and 5 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.

Positive Indications:

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

Alnylam Pharmaceuticals (ALNY) closed up +$5.96 after Wednesday’s +$4.64, Tuesday’s +$2.96 and Monday’s +$0.88, last Friday’s -$7.22 followed by the previous Thursday’s +$2.24, Wednesday’s +$4.65, Tuesday’s -$2.50 and Monday’s +$1.36 with a positive +$0.64 or +0.35% pre-open indication

Beam Therapeutics (BEAM) closed up +$1.51 after Wednesday’s +$2.24, Tuesday’s -$0.61, Monday’s +$0.25, and last Friday -$2.35 followed by the previous Thursday’s -$0.08, Wednesday’s +$0.42, Tuesday’s -$1.31 and Monday’s -$0.01 with a positive +0.18 or +0.63% pre-open indication

CRISPR Therapeutics (CRSP) closed up +$1.51 after Wednesday’s +$3.31, Tuesday’s -$2.16, Monday’s -$4.26, and last Friday’s -$5.67, followed by the previous Thursday’s -$0.93, Wednesday’s +$0.54 and Tuesday’s -$0.91 with a positive +$0.0.51 or +0.82% pre-open indication.

Intellia Therapeutics (NTLA) closed up +$1.47 after Wednesday’s +$2.24, Tuesday’s -$0.20, Monday’s -$0.67 and last Friday’s -$0.76, following the previous Thursday’s -$0.08, Wednesday’s -$0.04 with a positive +$0.23 or +0.75% pre-open indication

Sage Therapeutics (SAGE) closed -$0.14 after Wednesday’s +$1.55 and Tuesday’s -$0.22 with a positive +$0.29 or +1.34% pre-open indication.

 

The BOTTOM LINE:  I am getting ready to leave for the holiday, Christmas … Do not chase momentum after dramatic upside/downside equities, even as the market has run since late October; the risks of hiccups are rising!

  •  “Investors NEED to start formulating their portfolio outlook into next year.”

It’s up to you to decide as …

  • The small-cap Russell 2000 surged 5.55% racing up to 52-week highs.
  • After a quasi-market pause, all of these indexes and ETFs — even the Nasdaq 100 — had their best weekly performance since the week ended Nov. 3, as the new market rally staged follow-through days. <IBD>
  • The Nasdaq is getting extended from the 50-day line, closing 7.6% above that level. It may be a little early in the market rally to get worried about that, but it bears watching. A lot of stocks are extended, either from traditional buy points or from running straight up from the bottom.
  • The CBOE Volatility Index is still around its lowest levels in nearly four years. The market fear gauge showing little or no fear is another potential yellow flag.
  • The 10-year Treasury yield dived 32 basis points to 3.93%, the biggest five-day slide since March. The 10-year Treasury rate fell below the 4% level.

A BIG question re Vericel (VCEL) in … a transaction that has sparked discussions regarding insider trading patterns and their potential implications on the stock's future performance:

  • On 12/14, Director Paul Wotton sold 5,000 shares of the company, after …
  • On 12/7, President and CEO, Dominick Colangelo. On December 7, 2023, the insider executed a sale of 24,397 shares of the company's stock.

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

  • There are signs of slowing in the U.S. economy. Layoff news has become more frequent, especially in technology, and so have business failures. The commercial and residential real estate markets have been weak all year. The question is if the real estate issues can damage the banking system, as in 2008, and derail the economy. <The Street>
  • One can also never discount geopolitical stresses.
  • 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.