June 21, 2024 7:51am

Stock options, stock index futures, and stock index options all expire. This convergence of multiple expirations can lead to increased trading activity due to heightened volatility,

Pre-open Indications: 4 Negative Indications

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

 

Friday: The pre-open Dow futures are DOWN -0.01% or (-5 points), the S&P futures are DOWN -0.05% or (-3 points) as the Nasdaq futures are DOWN -0.02% or (-4 points)

Futures ticked were slightly lower Friday, June 21, 2024

European stocks were lower,

Asia-Pacific markets mostly fell.

 

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’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

Economic Data Docket:  Leading index, May (-0.3% expected, -0.6% previously); S&P Global US manufacturing PMI, June preliminary (51 expected, 51.3 prior); S&P Global US services PMI, June preliminary (53.4 expected, 54.8 prior); S&P Global US composite PMI, June preliminary (54.5 prior)

 

RegMed Investors (RMi) Closing bell: “missed sighting for incoming value upgrades. 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?” …  https://www.regmedinvestors.com/articles/13507

 

Q2/24: 

June – 1 market holiday, 4 positive and 9 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

 

Negative Indications:

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

Beam Therapeutics (BEAM) closed down -$0.13 after Tuesday’s-$0.86 after Monday’s -$0.84 and last Friday’s -$0.37 and the previous Thursday’s -$0.82, with a negative -0.42 or -1.82% pre-open

BioLife Solutions (BLFS) closed up +$0.87 after Tuesday’s -$0.29 after Monday’s +$0.05 and last Friday’s -$0.34 following the previous Thursday’s -$1.23 with a neutral pre-open.

Blueprint Medicine (BPMC) closed down -$1.50 after Tuesday’s +$2.84, Monday’s -$1.68 and last Friday’s -$0.84 and the previous Thursday’s +$0.25 with a neutral pre-open

Vericel (VCEL) closed up +$1.29 after Tuesday’s+$1.66, Monday’s -$0.58, last Friday’s -$1.06 and the previous Thursday’s -$0.17 with a neutral pre-open.

 

The BOTTOM LINE: As I stated last night, “We’re are in a negative adjustment phase that WILL later than sooner turn!”

More details on triple witching are outlined: Due to the convergence of several expirations, and increased trading volume and volatility, triple witching can be a challenging environment to trade…

  • Stock Options: On triple witching, regular monthly stock options contracts that are listed on individual stocks or exchange-traded funds (ETFs) typically expire. Traders and investors who hold these options positions must decide whether to exercise them, roll them over, or let them expire.
  • Stock Index Options: In addition to regular stock options, stock index options contracts, which are options based on broader market indices like the S&P 500, also typically expire on triple witching. That means investors and traders holding these positions must also decide whether to close or roll their positions on triple witching.
  • Stock Index Futures: Stock index futures contracts, such as those based on popular indices like the S&P 500 or Nasdaq, also expire on triple witching. These futures contracts are often used for hedging and speculative purposes, which means many market participants close or roll these positions on (or before) triple witching.

 

The cell and gene therapy sector lagged in April and May and is now trading in June at a 10% and as high as 20% 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.

  • Markets and sector <interruptus> were closed on Wednesday for a market holiday.

 

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

 

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

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

The week 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
  • Last Friday ended with a negative close of 4 incliners, 29 decliners and 2 flats

 

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.