January 25, 2024 7:52am

Wednesday, 31 decliners led 4 advancers, ending a few days of improving market breadth

Weak aftermarket, be cautious about new buys; choose to take some partial profits if available to lock in gains before a possible upcoming earnings’ season pullback

Pre-Open Indications: 1 Positive and 2 Negative

Who is defining the metrics for investors and keeping you notified of the sector and market fluctuations?  What RMi provides is a trusted source of share pricing intelligence. Join me … in the NO spin zone!

Never leave an investor uninformed!

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

I make a commitment to provide need-to-know “facts in evidence” as an equity’s volatility is one tactical signal for stocks. My thesis is important in trying to distinguish the temporary from real pricing digression or progression.

I also follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Thursday: The pre-open Dow futures are DOWN -0.01% or (-2 points), the S&P futures are UP +0.08% or (+3 points) as the Nasdaq futures are UP +0.16% or (+28 points)

Futures are mixed on Thursday a.m.,

European markets were lower

Asia-Pacific markets were mostly positive.

 

Henry’omics:

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

Indexes closed mixed as the Dow closed DOWN -99.06 points or -0.26%, the S&P closed UP +3.95 points +0.08% while the Nasdaq closed UP +55.97 points or +0.36%

Wednesday’s sector (my 35 covered list) advance/line lines ended with a negative close of 4 incliners, 31 decliners and 0 flat

Economic Data Docket: The economy grew much more rapid pace … Gross domestic product (GDP), a measure of all the goods and services produced, increased at a 3.3% annualized rate in Q4/23, according to data adjusted seasonally and for inflation. The U.S. economy for all of 2023 accelerated at a 2.5% annualized pace, well ahead of  outlook.

Personal consumption expenditures increased 2.8% for the quarter, down just slightly from the previous period. State and local government spending also contributed, up 3.7%, as did a 2.5% increase in federal government expenditures. Gross private domestic investment rose 2.1%, another significant factor for the robust quarter. On the inflation front, the price index for personal consumption expenditures rose 2.7%, down from 5.9% a year ago, while the core figure excluding food and energy posted a 3.2% increase, compared to 5.1%.CNBC>

 

Q1/24: 2 holidays, 9 negative and 6 positive 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.

I am passing on forecasting the daily indications – the aftermarket is just a sloppy nothing …  it is just mixed of some ups, fewer downs and a flat; although there are some flashes …

Positive Indication:

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

Vericel (VCEL) closed down -$1.43 after Monday’s +$2.36 and Friday’s +$0.51 with a positive =$1.68 or +$1.33 or +4.12% pre-open indication. 2 CEO stock dells and 2 directors stock sells?

 

Negative indication:

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

CRISPR Therapeutics (CRSP) closed down -$3.18 with a negative -$0.14 or -0.22% pre-open indication.

Sage Therapeutics (SAGE) closed down -$0.20 with a negative -$0.31 or -1.17% pre-open indication

 

The BOTTOM LINE: Remember, inflation “numbers” effect the condition of small-cap equities as buying opportunities only appear when the market is on a short-term upswing, just waiting for those sector equities to fall back.

  • The RegMed sector suffers the algorithmic and electronic trading tourist routine … pumping to buy and a dumping to sell. 

Coming attractions …Q4 and FY23 reporting season and “runways” will get measured as consensus and estimates will get missed!

  • For the next few weeks, if you're buying on weakness, you might be jumping onto a sinking ship even as … Q4 and FY23 earnings LPS (loss-per-share) are due even though some highlights were delivered to facilitate JPM presentations – there are consensus and beaten estimates to be reckoned!

Wednesday's reasons to the downside

  • Treasury yields may have been the catalyst for stocks pulling back Wednesday afternoon, but the market rally had been starting to look extended.
  • The 10-year Treasury yield rose 4 basis points to 4.18%, helped by a weak five-year Treasury note auction. The 10-year yield reversed higher from yet another test of the 200-day line. It closed just above its 50-day line for the first time since Nov. 13.
  • The Nasdaq 100 is 6.6% above its 50-day moving average, even after slashing intraday gains.
  • The Nasdaq composite is 5.9% above that key level.

Pricing for gene therapies will continue to dominate share ascensions and downfalls!

  • It's also a good idea to take some profits, especially if you didn't do so in past sessions. <IBD>

Welcome to my world of defining the “grey’ in our universe!

  • Right up front, “I also hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I can always be WRONG but … I am mostly EARLY!”
  • The sector is what it is, until it isn’t and even then, it doesn’t seem to be… as NOT much changes as the sector’s share pricing rides the waves of volatility, algorithms, electronic trading and short covering.

 

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.