February 23, 2024 7:31am

Near Thursday’s close, I noticed many sector equities were pulling back as traders started consolidating gains

News: BrainStorm Cell Therapeutics (BCLI +$0.01) has submitted a Special Protocol Assessment (SPA) request to the FDA for a P3b study of NurOwn®, its investigational treatment for amyotrophic lateral sclerosis (ALS).

Pre-open Indications: 2 Sell into Strength, 1 Positive and 3 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.”

 

Friday: The pre-open Dow futures are UP +0.10% or (+39 points), the S&P futures are  UP +0.02% or ( +1 points) as the Nasdaq futures are DOWN -0.06% or (-8 points)

Stock futures are low and mixed on Friday,

European stocks were higher,

Asia-Pacific markets were mostly higher.

 

Henry’omics:

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

Thursday, the Dow closed UP +456.87 points or +1.18%, the S&P closed UP +105.23 points +2.11% while the Nasdaq closed UP +460.75 points or +2.96%

All three major averages are also now on track for winning weeks: the S&P 500 is pacing for a 1.6% advance, while the Nasdaq has gained 1.7% and the Dow is up 1.1% for the period.

 

Thursday’s night RegMed Investors (RMi) Closing Bell: “will the “elevation” trend stay a friend?  Don’t think so, expectation is burning at stake following another up/positive sector session, 2 in a row.” …  https://www.regmedinvestors.com/articles/13341

 

Q1/24: February – 1 market holiday, 8 positive and 7 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:

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

Alnylam Pharmaceuticals (ALNY) closed up +$8.07 after Wednesday’s +$5.05, Tuesday’s +$2.69 and last Friday’s -$0.43 with a positive +$1.39 or +0.85% pre-open indication.

CRISPR Therapeutics (CRSP) closed up +$3.78 after Wednesday’s +$3.68, Tuesday’s -$3.49 and Friday’s -$2.26 with a positive +$0.18 or +0.21% pre-open indication.

 

Negative Indications:

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

Editas Medicine (EDIT) closed down -$0.08 after Wednesday’s +$0.06, Tuesday’s -$0.20, Monday’s holiday and Friday’s -$0.16 with a negative -$0.02 or +0.25% pre-open indication.

Ultragenyx Pharmaceuticals (RARE0 closed up +$0.70 after Wednesday’s +$0.31, Tuesday’s -$1.05 and last Friday’s +$2.66 with a negative -$0.09 or -0.18% pre-open indication.

Voyager Therapeutics (VYGR) closed up +$0.07 after Wednesday’s +$0.07, Tuesday’s +$0.02 and Monday’s holiday with a negative -$0.01 or -0.31% pre-open indication.

 

Positive Indication:

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

Blueprint Medicine (BPMC) closed down -$1.26 after Wednesday’s -$3.99, Tuesday’s +$0.99 and last Friday’s +$2.69 with a positive +$1.00 or +1.16% pre-open indication.

 

The BOTTOM LINE: The cell and gene therapy sector equities had a stronger session on Thursday after Wednesday’s weak yet, positive session after Tuesday’s negative session, Monday’s holiday and Friday’s negative close.

The remainder of the month’s trading sessions will be critical as the RegMed sector continues earnings’ in LPS (loss-per-share) season, estimates and consensus which set market reaction and will report “runways” and those whose cash positions render their future questionable.

 

I have seen 1 net income for the Q4 (but a FY23 loss) – CRISPR Therapeutics (CRSP).

7 have reported … NTLA, CRSP, IONS, SAGE, RARE, BPMC and ALNY.

Next week: Tuesday -RGNX, Wednesday – MDXG, EDIT, VYGR and Thursday - BLFS

 

I reiterate, “Don't chase the cell and gene therapy sector, especially with the Nasdaq extended.”

Short and non-sweet: SELL into STRENGTH – accumulate some “powder” i.e., cash!

Contributing to my caution and potential profit-taking:

  • the Nasdaq jumped above 16,000 (+2.9%), a 2 year high
  • On the Nasdaq, turnover was tracking 16% higher.
  • The U.S. Treasury 10-year bond yield closed the day flat at 4.33% after hitting a 3- month high of 4.35%.
  • The Russell 2000 lagged, up nearly 1% to finish at 2,013, but the small-cap gauge built on early-session gains. <IBD>
  • Investors could have taken advantage of some buying opportunities, though there weren't necessarily a lot of them. <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.