February 8, 2024 7:38am

Some cell and gene therapy sector “participants” are flashing buy signals; however, earnings’ season (LPS (loss-per-share) “decline” times are coming soon!

Pre-open indications: 2 Sell into Strength, 2 Positive and 2 Negative Indications

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Remember that overnight and pre-open actions’ futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

There is no breadline for share pricing and fact-based intelligence!

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 -0.03% or (-10 points), the S&P futures are DOWN -0.14% or (-7 points) as the Nasdaq futures are DOWN -0.14% or (-24 points)

Stock futures inched lower Thursday,

European markets were slightly higher,

Asia-Pacific markets extended gains except for China and Hong Kong

 

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, indexes rose as the Dow closed UP +156.00 points or +0.40%, the S&P closed UP +40.83 points +0.82% while the Nasdaq closed UP +147.65 points or +0.95%.

Economic Data Docket: Initial jobless claims, Feb. 3 (215,000 expected, 224,000 prior), wholesale inventories month-over-month, December final (0.4% prior), wholesale trade sales month over month, December (0% prior)

 

Wednesday’s night RegMed Investors (RMi) Closing Bell: “The RegMed sector was stuck with sentiment diarrhea.” … https://www.regmedinvestors.com/articles/13319

 

Q1/24: February – 2 positive and 3 negative closes

  • 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:

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

Adverum Biotechnologies (ADVM) closed up +$0.31 after Tuesday’s +$0.59 and Monday’s +$0.49 with a positive +$0.02 or +0.71% pre-open indication.

Vericel (VCEL) closed up +$0.07 after Tuesday’s +$0.94 and Monday’s +$0.33 with a neutral pre-open indication.

 

Negative Indications:

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

Regenxbio (RGNX) closed up +$1.52 after Tuesday’s +$0.73 and Monday’s +$0.08 with a negative -$0.01 or -0.07% pre-open indication.

Ionis Pharmaceuticals (IONS) closed up +$0.42, Tuesday’s -$0.21 after Monday’s-$0.32 with a negative -$0.85 or -1.72% pre-open indication

 

Positive Indication:

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

Fate Therapeutics (FATE) closed up +$0.18 after Tuesday’s -$0.62 after Monday’s -$0.16 with a positive +$0.04 or +0.72 pre-open indication.

Ultragenyx Pharmaceuticals (RARE) closed down -$1.18 after Tuesday’s +$1.13 and Monday’s +$1.74 with a positive +$1.21 or +2.71% pre-open indication

 

The BOTTOM LINE: Don't chase the cell and gene therapy sector, especially with the Nasdaq extended.

  • However, the Nasdaq is 5.7% above its 50-day line, with the Nasdaq 100 6% above that key level.
  • Some of them may work out quite well, but others may be relative laggards or stumble; add carefully. If a sector rally “pulls” - some equities may falter.

The remainder of the month’s trading sessions will be critical as the RegMed sector will begin earnings’ LPS (loss-per-share) season, estimates and consensus which set market reaction. 

  • Coming attractions …Q4 and FY23 reporting season will ALSO report “runways” and those whose cash positions render their future questionable.

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 last week “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 … or NOT!

Thursday thoughts coming after Wednesday’s actions:

  • Market breadth was slightly negative despite the solid gains for the Nasdaq.
  • The 10-year Treasury yield rose 2 basis points to 4.11%, back to the 200-day line after testing the 50-day.
  • The small-cap Russell 2000 fell 0.2%, just holding the 50-day line.

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.