March 22, 2024 7:49am

Risk-on or Risk-off (RORO) can also sway changes in investment activity in response to economic patterns

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

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“On the plus side, even just a few days of sideways action or a mild pullback would let the cell and gene therapy sector catch on and I didn’t say totally catch- up.”

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 answer or qualify the sector’s equity’s movement; with an emphasis on which company is gaining or losing stride in their portfolio for the short-term

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 +0.08% or (+33 points), the S&P futures are UP +0.07% or (+3 points) as the Nasdaq futures are UP +0.00% or (+1 points)

U.S. stock futures inched higher Friday,

European markets were mixed,

Asia Pacific markets closed 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 …

A mixed picture this a.m. ...

Thursday, the Dow closed UP +269.24 points or +0.68%, the S&P closed UP +16.91 points +0.32% while the Nasdaq closed UP +32.43 points or +0.20%

For the second day in a row, all three major stock indexes closed at record levels. The major averages also hit all-time intraday highs and rose for a fourth consecutive session. <CNBC>

For the week through Thursday, the S&P 500 is up +2.4% pop, the Nasdaq +2.7% and the Dow up +2.8%.

Economic Data Docket: No notable economic data

 

From the title: Risk-on risk-off is an investment paradigm where asset prices are dictated by changes in investors' risk tolerance and investment choices. In risk-on, investors have a high-risk appetite and commonly drive up some asset prices. In risk-off situations, investors are more risk-averse and sell assets.

  • Investors' appetites for risk rise and fall over time.
  • Da, risk is the uncertainty associated with investments that may negatively impact a financial portfolio – nobody is that stupid to not understand.

 

Thursday’s night RegMed Investors (RMi) Closing Bell: “The cell and gene therapy sector faltered. Tuesday and Wednesday’s trend dumped a non-friend” … https://www.regmedinvestors.com/articles/13384

 

Q1/24: march – 6 positive and 9 negative closes

  • February – 1 market holiday, 11 positive and 9 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 and last Friday’s closing “numbers” with aftermarket/pre-market dollar ($) and cent ($0.00) value and percentage (%)

CRISPR Therapeutics (CRSP) closed up +$1.56 after Wednesday’s +$0.98, Tuesday’s +$0.49 and Monday’s -$1.48 with a positive +$o.50 or +0.67% pre-open indication.

Vericel (VCEL) closed up +$0.94 after Wednesday’s +$0.10, Tuesday’s $1.14 and Monday’s -$0.07 with a neutral pre-open indication.

 

Negative Indication:

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

Blueprint Medicine (BPMC) closed up +$1.79 after Wednesday’s +$0.29, Tuesday’s +$1.15 and Monday’s -$3.88 with a neutral pre-open indication.

 

Positive Indications:

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

Adverum Biotechnologies (ADVM -$0.45 after Wednesday’s -$0.13, Tuesday’s -$0.12 and Monday’s +$0.07) with a neutral pre-open indication.

Alnylam Pharmaceuticals (ALNY -$1.37 after Wednesday’s -$0.18, Tuesday’s +$0.76 and Monday’s -$1.68 with a neutral pre-open indication.

Graphite Bio (GPPH) closed down -$0.09 after Wednesday’s +$0.20 after Tuesday’s -$0.16 with a neutral% pre-open indication.

 

The BOTTOM LINE: Watch the macros, the stock market rally pared gains after the major indexes hit record highs Thursday morning.

  • Yet, the cell and gene therapy sector slashed or erased gains.

There is ALWAYS a however, the Nasdaq is above its 50-day line at 4.2%. Those are almost at the 5%-6% level that would be slightly extended. So far Nasdaq has only had brief, modest pullbacks to the 21-day line, if that. But at some point, the market rally will have a bigger retreat or longer pause.

  • I STILL reiterate, “Don't chase the cell and gene therapy sector.” Short and non-sweet: SELL into STRENGTH – accumulate some “powder” i.e., cash!

 

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.

  • 28 (of 35 covered companies) have reported …7 are left to release earnings of my covered group.

 

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.