October 25, 2023 8:27am

Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules. After gains, there’s pain; followed by advances, declines and other progressions or regressions?

Pre-Open Indications: 1 Sell into Strength, 2 Positive and 2 Negative Indications

Don't get excited; indexes and the cell and gene therapy sector need strong gains before signaling an end to appreciation in follow-through sessions

Never leave an investor uninformed!

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

If I have learned one thing as a former research analyst in a closed end -venture and public equity funds, multiple operating roles, x-military officer and x-FBI, an adjunct (MBA) business school professor now a journalist; my life and your portfolio are largely tied to rendering objectivity of the biotech/cell/gene therapy sector universe’s patterns, price movements and questioning pricing targets.

 

The pre-open Dow futures are UP +0.26% or (+88 points), the S&P is DOWN -0.22% or (-9 points) as the Nasdaq is DOWN -0.43% or (-64 points)

Futures were mixed with the S&P and Nasdaq falling as Dow limped upward on Wednesday,

European markets were lower

Asia-Pacific markets are mostly up.

 

News: Beam Therapeutics (BEAM +$0.22 in pre-open) reported new preclinical data demonstrating the ability of its in vivo drug candidate, BEAM-301, to directly correct the R83C mutation, one of the primary disease-causing mutations of glycogen storage disease type Ia (GSDIa). The data were presented today in an oral presentation titled “A Single, Systemic Administration of BEAM-301 Mitigated Fasting Hypoglycemia One Year after Dosing in a Transgenic Mouse Model of Glycogen Storage Disease Type-Ia” at the 30th Annual European Society of Gene & Cell Therapy (ESGCT) Congress in Brussels.

 

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 …

All the major averages notched gains in Tuesday session. The Dow added more than +204.97 points, or +0.62%, to break a four-day losing streak; he S&P 500 gained +0.073% or +30.64 points and the Nasdaq gained +0.93% or +121.55 points.

Economic Data Docket: September’s building permits and new home sales numbers for insight into the housing market

 

Tuesday’s (10/24) RegMed Investors’ (RMi) closing bell: “elevating the oversold with help from “uncle algo. However, post the ascent, the overbought will be created too only last so long. After careful examination of the sector and breathe trends, I believe in caution.” … https://www.regmedinvestors.com/articles/13179

 

RegMed Investors (RMi) Research Note: Q3/23 earnings reporting dates, net losses, cash positions and runway outcomes. LPS (loss-per-share) releases will present challenges to share pricing with outcomes included.” … https://www.regmedinvestors.com/articles/13166

 

Ebb and flow:

Q4: October – 7 positive and 10 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:

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

Vericel (VCEL) closed up +$1.91 after Monday’s +$0.33, Friday’s -$0.90, Thursday’s -$0.40, Wednesday’s -$1.18, last Tuesday’s +$2.11 and the previous Monday’s +$2.00 with a neutral aftermarket indication.

 

Positive indications;

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

Beam Therapeutics (BEAM) closed up +$0.43 with a positive +$0.22 or +1.135 pre-open indication on news.

Verve Therapeutics (VERV) closed up +$0.39 after Monday’s -$0.11, Friday’s -$0.36 and Thursday’s -$1.30, last Wednesday’s -$0.58 and the previous Tuesday’s -$0.05 and Monday’s -$0.13 with a positive +$0.19 or +1.99% pre-open indication.

 

Negative indications:

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

CRISPR Therapeutics (CRSP) closed up +$1.41 after Monday’s +$1.48 after Friday’s -$1.16, Thursday’s -$0.65, Wednesday’s -$3.23, Tuesday’s -$1.15 and Monday’s +$0.50 with a negative -$0.31 or -0.75% pre-open indication.

Editas Medicine (EDIT) closed up +$0.32 with a negative -0.07 or -1.07% pre-open indication

 

The BOTTOM LINE: Amid the ongoing cell and gene therapy sector volatility, “our” universe’s trend remains " in a constant correction." That means that investors are safer on the sidelines as again … earnings are coming.

  • Tuesday, I wrote to BUY many bottoms while I monitor the pulse of possible outcomes … give it a session or two (2) many equities downside volatility is one tactical BUY signal and headed our way.

 

An appropriate quote, “We're in a period of sector rotation, and people are trying to figure out in this new environment - in a full reset of rates across the curve - what are the stocks that are going to continue to do well and what are the stocks that are going to suffer." <Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey>

Another, “headwinds have been mounting for investors. Geopolitical tensions are rising in the Middle East. Fears of recession are still proliferating through corporate America. There is uncertainty around leadership in Washington and what that could mean for another government shutdown. Bond yields are at 16-year highs, and oil prices have been resilient, too.” <Yahoo! finance>

 

Today’s relevancy from yesterday's, Tuesday’s session and last week’s perspective:

  • Mixed treasury yields held steady, comfortably below their recent spike to 5%,
  • Treasury yields help dictate how much investors pay for everything from stocks to corporate bonds to cryptocurrencies. Higher yields also make it more expensive for nearly everyone to borrow money, which puts the brakes on economic growth and adds stress to the entire financial system. <Yahoo! finance>

 

Trade any ups, buy into some bottoms, build cash position; buying the lows so they can eventually be the overbought through unbridled speculation and then trade again.

  • New earnings release dates, Sage Therapeutics (SAGE) on 11/7 Tuesday and Fate Therapeutics (FATE) on 11/8 Wednesday

 

What the sector patterns and markets are telling me:

  • Investors should pay close attention to sector equities with strong relative strength. But it's not a time to be buying. Instead, it's been a week to scale out of positions.
  • Market breadth has fluctuated
  • Uncertainty
  • A weak aftermarket
  • A sentiment factor driven by algorithms and electronic trading,
  • Remember, the closer we get to earnings releases <LPS or loss per share sweepstakes> the leaner gains or expressive losses are going to be!
  • The ongoing Israel-Hamas war has raised questions of a potential oil supply crunch and a resulting rise in fuel prices if the geopolitical instability spreads to neighboring oil producers in the region.

 

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.