June 20, 2024 7:18am

4 negative closes in a row; will “uncle algo and his electronic dwarfs” pop in for an invest

Pre-open Indications: 4 Positive and 2 Negative Indications

News: Higher-than-expected weekly jobless claims and poor housing data. A reading of the Philadelphia fed Manufacturing Index also came in below expectations.

A daily analytic read-out from RMi is constructed of specific warnings challenging share pricing situations

Never leave an investor uninformed

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

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today, not tomorrow or yesterday

 

Thursday: The pre-open Dow futures are DOWN -0.06% or (-25 points), the S&P futures are UP +0.26% or (+14 points) as the Nasdaq futures are UP +0.41% or (+82 points)

 

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 was a “holiday” as Tuesday: the Dow closed UP +56.89 points or +0.15%, the S&P closed UP +13.80 points or +0.25% while the Nasdaq closed UP +5.21 points or +0.03%

Tuesday’s cell and gene therapy sector’s advance/decline line ended with a negative close of 6 incliners, 26 decliners and 3 flats

Economic Data Docket:  Initial jobless claims, week ending June 15 (242,000 previously);

  • Housing starts month-over-month, May (+1.1% expected, +5.7% prior);
  • Building permits month-over-month, May (+1.4% expected, -3% prior);
  • Philadelphia Business Outlook, June (4.5 expected, 4.5 prior);
  • Import prices, month-over-month, April (+0.2% expected, +0.4% previously)

 

RegMed Investors (RMi) Closing bell: “few go up, most flip down showing strain of sentiment. As cell and gene therapy sector flip-flops again in the downside gutter” …  https://www.regmedinvestors.com/articles/13505

 

Q2/24: 

June – 1 market holiday, 4 positive and 8 negative closes

  • May – 1 holiday, 11 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.

Insight is about understanding perception ...

 

Positive Indications:

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

Agenus (AGEN) closed down -$1.31 after Monday’s -$1.16, Friday’s -$0.54 and last Thursday’s -$0.92 with a positive +$0.18 or +1.39% pre-open

Alnylam Pharmaceuticals (ALNY) closed down -$3.44 after Monday’s -$3.09, Friday’s +$0.34 and last Thursday’s +$1.01 with a neutral pre-open

Beam Therapeutics (BEAM) closed down -$0.86 after Tuesday’s -$0.84, Friday’s -$0.37 and last Thursday’s -$0.82, with a positive +0.19 or +082% pre-open

BioLife Solutions (BLFS) closed down -$0.29 after Monday’s +$0.05, Friday’s -$0.34 and last Thursday’s -$1.23 with a neutral pre-open.

 

Negative Indications:

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

Blueprint Medicine (BPMC) closed up +$2.84 after Monday’s -$1.68 after Friday’s -$0.84 and last Thursday’s +$0.25 with a neutral pre-open

Vericel (VCEL) closed up +$1.66 after Monday’s -$0.58, Friday’s -$1.06 and last Thursday’s -$0.17 with a neutral pre-open.

 

The BOTTOM LINE: The cell and gene therapy sector lagged in May and is now trading at a 5% and as high as 10% discount as opposed to earlier this year. Within “our” universe, we are seeing a number of stocks that rarely have traded at much of a discount,

 I’m STILL not FEELING a bullish optimism --- it’s only an up party for visits from “uncle algo and his electronic trading dwarfs”!

Reiterating, “In this period of ups, downs and uncertainty having experienced performance in the sector these months; I think investors need to SELL the HIGHS and BUY the LOWS … contrarian investment opportunities, especially in this sector that has underperformed, usually unloved—and most importantly—undervalued.”

Tuesday, the Nasdaq was 8.2% above its 50-day line. It can go higher, but the more extended it gets the higher risk of a pullback, and that the pullback would be more significant.

Markets were closed on Wednesday for the Juneteenth holiday.

 

Some stats for the year to date:

  • The S&P 500 is up 703.40 points, or 14.7%.
  • The Dow is up 1,088.56 points, or 2.9%.
  • The Nasdaq is up 2,845.67 points, or 19%.
  • The Russell 2000 is down 5.07 points, or 0.3%.

 

3rd week of June, 3rd session … the cell and gene therapy sector experienced 3 negative closes and 1 market holiday in observance of the Juneteenth holiday, but other exchanges around the world were open. …

•             2nd week of June, 5th session … negative closes on Friday and Thursday after Wednesday ascended positively as Tuesday drifted lower, retreating from Monday’s highs.

•             1st week of June: Friday and Thursday ended in the toilet after Wednesday’s positive close Tuesday negative close following Monday’s positive close.

 

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.
  • 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.