June 20, 2024 4:46pm

As traders weigh recent signs of a slowing economy; why does “uncle algo and his electronic trading dwarfs” keep thwarting cell and gene therapy sector share pricing?

No catalysts or news contribute to decline in sentiment as Q2 slowly comes to a close!

I say today what others won't, so you can do what others can't!

Never leave an investor uninformed! 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

 

Thursday: The Dow closed UP +299.90 points or +0.77%, the S&P closed DOWN -13.86 points or -0.25% while the Nasdaq closed DOWN -140.65 points or -0.79%

 

RegMed Investors’ (RMi) pre-open post: “incoming share pricing; 4 negative closes in a row; will “uncle algo and his electronic dwarfs” pop in for an invest” …  https://www.regmedinvestors.com/articles/13506

 

Henry’omics:

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

Indexes closed mixed as the S&P and Nasdaq floated down.

Economic Data Docket: higher-than-expected weekly jobless claims, poor housing starts and permits; reading of the Philadelphia fed Manufacturing Index also came in below expectations.

  • Filings for jobless benefits totaled 238,000 for the week ended June 15, bringing the 4-week moving average, which helps smooth out volatility in the numbers up to 232,750.
  • That was an increase of 5,500 from the previous week and the highest level since Sept. 2, 2023.
  • The 4-week moving average of continued claims also popped, rising to 1.806 million, or the highest since Feb. 10.

 

Metrics & Advance/Decline (A/D) Line:

Thursday’s advance/decline line at the open was negative with 10 incliner, 22 decliners and 3 flats; ending with a negative close of 10 incliners, 21 decliners and 4 flats

  • the IBB was up +0.98% and the XBI was up +0.21%
  • the VIX up +0.80 point or +6.41% at 13.26

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

  • June: 1 market holiday, 4 positive and 9 negative closes

 

Thursday’s Closing Down (10 of 21): Wednesday was market holiday

  • Blueprint Medicine (BPMC -$1.50 after Tuesday’s +$2.84 and Monday’s -$1.68)
  • CRISPR Therapeutics (CRSP -$0.97 after Tuesday’s -$1.22 and Monday’s -$1.78),
  • Intellia Therapeutics (NTLA -$0.65 after Tuesday’s -$0.37 and Monday’s +$0.02),
  • Solid Biosciences (SLDB -$0.50 after Tuesday’s -$0.67 and Monday’s -$0.43),
  • Voyager Therapeutics (VYGR -$0.37),
  • AxoGen (AXGN -$0.34),
  • Regenxbio (RGNX -$0.33 after Tuesday’s +$0.57 and Monday’s -$0.77),
  • Mesoblast (MESO -$0.30 after Tuesday’s +$0.25),
  • Lenz Therapeutics (LENZ -$0.26),
  • Prime Medicine (PRME -$0.13),

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Editas Medicine (EDIT)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX) – under $1.00

Thursday’s Closing Up (10 of 10): Wednesday was a market holiday

  • Alnylam Pharmaceuticals (ALNY +$3.54 after Tuesday’s -$3.44 and Monday’s -$3.09
  • Vericel (VCEL +$1.29 after Tuesday’s +$1.66 after Monday’s -$0.58)  
  • BioLife Solutions (BLFS +$0.87 after Tuesday’s -$0.29 and Monday’s +$0.05),
  • Ultragenyx Pharmaceuticals (RARE +$0.60 after Tuesday’s -$2.38 and Monday’s +$0.75)
  • Agenus (AGEN +$0.58 after Tuesday’s -$1.31 and Monday’s -$1.16),
  • Fate Therapeutics (FATE +$0.18),
  • Ionis Pharmaceuticals (IONS +$0.17),
  • Caribou Biosciences (CRBU +$0.08),
  • Verve Therapeutics (VERV +$0.03),
  • Sangamo Therapeutics (SGMO +$0.0293 after Tuesday’s +$0.0076),

 

The month to date:

  • Thursday ended with a negative close of 10 incliners, 21 decliners and 4 flats
  • Wednesday was a market holiday
  • Tuesday ended with a negative close of 6 incliners, 26 decliners and 3 flats
  • (6/17) Monday ended with a negative close of 8 incliners, 23 decliners and 4 flats

 

The BOTTOM LINE: We’re are in a negative adjustment phase that WILL turn!

… Another bottoming session as sentiment even from algos and electronics continued diving

Let get to 3 things that you need to know for Friday as you prep for the trading day …

  • 3rd week of June, the cell and gene therapy sector experienced 1 market holiday, 3 negative closes
  • 2nd week of June … 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.

Economic data releases painted a mixed picture of the labor market and housing sector in the United States

  • More than half of traders are pricing in the first interest rate cut in September and we have fresh jobs and housing data out this morning on the jobs front, 238,000 people filed new claims for unemployment benefits for the weekend in June 15th and that's a few 1000 higher than analysts expected, but it's a decline from previous weeks and those weeks were at revised levels. <Yahoo Finance>

The top three (3) performing in the session:  

  • Thursday: Alnylam Pharmaceuticals (ALNY), Vericel (VCEL) and BioLife Solutions (BLFS)
  • Wednesday was market holiday
  • Tuesday: Blueprint Medicine (BPMC), Vericel (VCEL) and Regenxbio (RGNX)
  • Monday: Ultragenyx Pharmaceuticals (RARE), Generation BIO (GBIO) and Ionis Pharmaceuticals (IONS)

The worst three (3) in the session:   

  • Thursday: Blueprint Medicine (BPMC), CRISPR Therapeutics (CRSP) and Intellia Therapeutics (NTLA)
  • Wednesday was market holiday
  • Tuesday: Alnylam Pharmaceuticals (ALNY), Ultragenyx Pharmaceuticals (RARE) and Agenus (AGEN)
  • Monday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and Blueprint Medicine (BPMC)

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!”

 

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. 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.

Henry McCusker, the editor, and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication. 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 it’s 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.