November 15, 2023 7:52am

Stuck in the middle between FOMO, fear of missing out, and FOLA, that fear of losing it all

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

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I say today what others won't, so you can do what others can't whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors.

Remember that overnight and pre-open actions in futures don't necessarily translate into actual trading in the coming day’s session. My interpretation of the morning’s numbers is written to be informative; it’s built on what could happen or materialize

 

News:

Solid Biosciences (SLDB closed -$0.03 with a pre-open +$0.97 or +45.5%) has received FDA clearance of an Investigational New Drug (IND) application for SGT-003, the company’s next-generation Duchenne Muscular Dystrophy (Duchenne) gene therapy candidate.

LENZ Therapeutics, a late-stage biopharmaceutical company focused on developing and commercializing innovative therapies to improve vision, and Graphite Bio, Inc. (GRPH +$0.22) have entered into a definitive merger agreement to combine the companies in an all-stock transaction. The lead programs of the combined company will address presbyopia, the inevitable loss of near vision that impacts the daily lives of nearly all people over the age of 45. The combined company is expected to trade on Nasdaq under the ticker symbol "LENZ."

  • Connected to the merger, GRPH) has entered into a subscription agreement for a PIPE financing that is expected to close concurrently with the completion of the merger of $53.5 million, with a syndicate of healthcare investors led by LENZ’s existing investors and including participation from new investors.

 

The pre-open Dow futures are UP +0.32% or (+113 points), the S&P is UP +0.42% or (+18 points) as the Nasdaq is UP +0.60% or +95 points)

U.S. stock futures ticked higher Wednesday,

European markets were higher,

Asia-Pacific markets were higher.

 

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 …

Tuesday, indexes rode higher …the Dow closed up +489.83 points or +1.43%, the S&P closed up +84.15 points or +1.91% while the Nasdaq closed UP +326.64 points or +2.37%

Economic Data Docket: October producer price index and October retail sales

 

Tuesday, RegMed Investors (RMi) Closing Bell: “a reverse from 4 past loosing sessions, are short positions being covered?” … https://www.regmedinvestors.com/articles/13207

 

Q4: November – 5 positive and 5 negative closes

·         October – 1 sick day, 9 positive and 12 negative closes

 

Companies in my headlights – It’s your decision; I provide ideas and context: looking for lost SHEAP …

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 Indication:

Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday, Monday's closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

BioLife Solutions (BLFS) closed up +$1.19 after Monday’s -$0.17 and Friday’s -$0.44 with a positive +$0.26 or +2.17% aftermarket indication

Vericel (VCEL) closed up +$2.80 after Monday’s +$0.04, Friday’s +$1.48, Thursday’s -$2.84 and last Wednesday’s -$1.24 with a neutral $0.00 aftermarket indication

Ionis Pharmaceuticals (IONS) closed up +$2.11 after Monday’s +$0.68, Friday’s -$0.95, Thursday’s +$0.22 with a negative -$2.41 or -4.90% aftermarket indication

 

Positive Indication:

Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday, Monday's closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Solid Biosciences (SLDB) closed down -$0.03 with a pre-open +$0.97 or +45.5% after receipt of  FDA clearance of an Investigational New Drug (IND) application for SGT-003, its next-generation Duchenne Muscular Dystrophy (Duchenne) gene therapy candidate.

 

Negative Indication:

Tuesday’s closing price, some Monday, Friday, Thursday, Wednesday, Tuesday, Monday's closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)

Alnylam Pharmaceuticals (ALNY) closed up +$4.98 after Monday’s +$3.12, Friday’s -$2.63 after Thursday’s -$4.88 and last Wednesday’s -$0.80 with a negative -$1.39 or -0.82% aftermarket indication.

Blueprint Medicine (BPMC) closed up +$5.87 after Monday’s +$0.01, Friday’s +$1.60 after Thursday’s -$2.01 after last Wednesday’s -$1.36, the previous Tuesday’s +$1.89 and Monday’s -$1.04) with a negative -$1.46 or -2.26% aftermarket indication.

Graphite Bio (GRPH) closed up +$0.03 with a negative pre-open indication of -$0.14 or -6.01% having entered into a definitive merger agreement to combine the companies in an all-stock transaction. 

 

The BOTTOM LINE: Cooler inflation data triggered a market and sector rally Tuesday …

  • Ben Graham used to talk about the stock market being a cross between a voting machine and a weighing machine. There is a voting machine for this sector. In the short run, value can be pretty senseless if one side or the other decides to be aggressive in their buying or selling.
  • Even as, bonds rallied and yields fell, the 2-year Treasury yield dipped to 4.813%. The 10-year yield was down to 4.44%. The 30-year yield was down to 4.619%.
  • As the sector and market flashes a green light for adding exposure; I am skeptical whether there is … continuation even as indexes powered higher, breadth has improving supposedly … flashing buy signals – I say SELL the highs.
  • Thus, investors should be cautious about new buys with the market rally struggling and earnings season picking up steam. Selling some recent buys may be warranted.

 

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

 

Today’s relevancy from Tuesday’s session:

  • A short-term bill that will stave off a partial government shutdown for at least another two months cleared the House of Representatives Tuesday evening, bringing lawmakers one giant step closer to keeping federal operations going after 11:59 p.m. Friday.
  • The small cap Russell 2000 index also soared following the data, closing up more than 5% — its best close in over a year.
  • The 10-year Treasury yield dropped a whopping 19 basis points to trade near 4.44%, while the 30-year Treasury yield declined roughly 12 basis points to 4.62%. <Yahoo finance>
  • Investors should be very cautious, holding to some positions and building cash if possible!

 

I hate to be so negative or contrarian but, this is a NO spin zone and facts are its product; I am more frequently right than consequentially 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. 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.