May 30, 2024 7:47am

With another weak aftermarket as June looms, pick through and maybe some bottoms?

Pre-open Indication: 2 Positive and 1 Negative Indications

A daily analytic discipline from RMi is constructed by specific warnings of challenging share pricing situations

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.

 

Wednesday: The pre-open Dow futures are DOWN -0.90% or (-348 points), the S&P futures are DOWN -0.41% or (-21 points) as the Nasdaq futures are DOWN -0.30% or (-55 points)

U.S. stock futures were down on Thursday,

European stocks were higher,

Asia-Pacific markets extended losses,

 

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: The Dow closed DOWN -411.32 points or -1.06%, the S&P closed DOWN -39.09 points or -0.74% while the Nasdaq closed DOWN -99.30 points or -0.58%

Economic Data Docket: weekly jobless claims numbers. The 2nd reading of the real gross domestic product for Q1.

  • The main event for economic data this week is the Friday release of the personal consumption expenditures price index report for April, the Fed’s preferred inflation gauge

 

Q2/24:  May – 1 holiday, 9 positive and 11 negative closes

  • April - 16 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.

Positive indications:

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

Sage Therapeutics (SAGE) closed down -$1.07 after Tuesday’s +$0.15 with a neutral pre-open indication.

Solid Biosciences (SLDB) closed down -$0.01 after Tuesday’s -$0.22 with a neutral pre-open indication

 

Negative indications:

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

CRISPR Therapeutics (CRSP) closed down -$0.99 after Tuesday’s -$0.40, Monday’s holiday, Friday -$0.49 and last Thursday’s -$1.07 following the previous Wednesday’s +$2.04 with a negative -$0.16 or -0.30% pre-open indication.

 

The BOTTOM LINE:  Another hiccup of a session, that’s 6 negatives out of 8 and 1 holiday in the cell and gene therapy universe of my covered companies.

  • The Nasdaq is at an all-time high; a lot of that is due to Nvidia (NVDA).
  • Sector weak breadth is a concern, a down drafting sector exposes instability highlighting the risks of sector rotation that have joined the downtrodden.
  • Investors may want … STAY … cautious about adding too quickly some bottoms.
  • Stay … don’t be too quick to cut holdings … too soon especially those that are showing weakness.
  • If you want to BUY some bottoms, be agile, being ready to exit other positions that don't work out.
  • The underlying market weakness could be short-lived, giving June opportunities to watch “uncle algo and his electronic trading dwarfs” build some value and strength.

 

An uptick in the 10-year Treasury yield, which topped 4.6%, weighed upon investor sentiment. Higher yields can be bad news for stock investors, as they reduce the multiples investors are willing to pay for equities and make safer investments, such as Treasury bills and money market funds, more attractive. We have a ‘higher for longer’ backdrop, which is not new news, but in the [current] catalyst vacuum, is weighing upon the average stock — particularly at an extended valuation like we’re currently at.” << Ross Mayfield, Baird investment strategy analyst, on CNBC>

 

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.
  • Never forget, one of my usual lines. “The sector is … still what it is, until it isn’t and even then, it doesn’t seem to be … that is after taking a deep breath and holding it.”
  • I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

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.