February 2, 2024 7:38am

We're in a period of sector rotation, 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.

Pre-open indications: 3 Sell into Strength and 4 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 and pre-open actions’ futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

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

The Strange Case of Dr. Jekyll and Mr. Hyde might make for a great read, but it’s far less fun when the sector act like it’s their blueprint.

 

Friday: The pre-open Dow futures are UP +0.11% or (+ points), the S&P futures are +66% or (32 points) as the Nasdaq futures are UP +1.09% or (+190 points)

U.S. Futures rose on +Friday morning waiting for jobs report,

European markets moved higher,

Asia Pacific markets were higher although Hong Kong fell

 

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 positive in a volatile session as the Dow closed UP +369.54 points or +0.97%, the S&P closed UP +60.54 points +1.25% while the Nasdaq closed UP +197.63 points or +1.30%

Economic Data Docket: January’s jobs report. Economists are calling for payrolls to have grown by 185,000 positions, and for the unemployment rate to inch higher to 3.8%. That compares to December’s blowout of 216,000 positions added and an unemployment rate of 3.7%.

 

Last night’s RegMed Investors (RMi) Closing Bell: “back on the roller-coaster. Of inclines post descents through sudden changes of speed and direction, sharp economic curves and sudden market changes.” …  https://www.regmedinvestors.com/articles/13310

 

Q1/24: February – 1 positive close

  • January: 2 holidays, 11 negative and 8 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.

Sell into Strength Indication:

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

Beam Therapeutics (BEAM) closed up +$2.03 after Wednesday’s -$1.44, Tuesday’s -$2.45 and Monday’s +$4.00 with a +$0.06 or +0.23% indication.

CRISPR Therapeutics (CRSP) closed up +$1.72 after Wednesday’s -$1.53, Tuesday’s -$1.30 and Monday’s +$4.77 with a positive +$0.69 or +1.07% indication.

Intellia Therapeutics (NTLA) closed up +$1.44 after Wednesday’s -$0.77, Tuesday’s -$1.59 and Monday’s +$1.50 with a positive +$0.30 or +1.19% indication

 

Negative Indications:

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

Blueprint Medicine (BLMC) closed up +$0.35 after Wednesday’s -$3.99, Tuesday’s-$1.53 and Monday’s +$3.49 with a negative -$1.52 or -1.90-% indication.

Fate Therapeutics (FATE) closed up +$0.60 after Wednesday’s +$0.58 with a negative -$0.06 or -0.89% indication

Ionis Pharmaceuticals (IONS) closed down -$0.42 after Wednesday’s -$0.51 with a negative -$0.89 or -1.75% indication.

Solid Biosciences (SLDB) closed up +$0.20 after Wednesday’s -$1.19, Tuesday’s +$0.12 and Monday’s -$0.02 with a negative -$0.16 or -2.26% indication.

 

The BOTTOM LINE: The days of being long are not the strongest investing rationale as the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).

That is WHY I focus on INDICATIONS … Skim if you can trim, buy if it will fly and sell if compelled!

As I wrote on Tuesday, “When it comes to short-term investing or trading; the trend is NOT your friend.”  Just wait a session and the direction will change from tailwinds to headwinds.

Sector investors need to be cautious about any buys to see how the Wednesday’s dust settles.

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

Friday coming after Thursday’s actions and thoughts:

  • Market and sector popped with rebounds from hawkish Fed sell-off
  • Treasuries rallied strongly, with 10-year yields slipping 10 basis points to 3.865%, amid jitters over regional U.S. banks after shares of New York Community Bancorp fell further on concerns about commercial real estate.
  • The small-cap Russell 2000 rose 1.4%, retaking the 21-day line after rebounding from an intraday drop to the 50-day line. That's despite concerns about regional banks.

Interesting and Re-iterating … Put-call ratio can signal market consolidation ahead:

  • A short-term indicator can indicate a market breather on the horizon, according to Wolfe Research.
  • Managing director Rob Ginsberg said the five-day moving average of the ratio between puts and calls has fallen into what he calls a “complacency zone.” For reference, investors buy a call option when they anticipate a stock’s price will rise, or get a put when they foresee shares tumbling.
  • Investors should prepare for a short-term correction ahead

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.