October 26, 2023 7:52am

The reality of the markets and cell and gene therapy sector ability or capacity to move upward I questionable as bottoms appear with earnings’ release coming next week

After careful examination of the sector and breathe trends, I have come away more cautious.

Having lived through the rise and multiple declines of “our” universe’s stock price, investors must be better informed on what fluctuating markets can do to an equity, or what impact indications on or expectations can have.

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

 

The pre-open Dow futures are DOWN -0.51% or (-170 points), the S&P is DOWN -0.81% or (-34 points) as the Nasdaq is DOWN -1.09% or (-157 points)

Stock futures fell Thursday - October 26, 2023,

European stock markets were lower,

Asia-Pacific markets saw a broad sell-off, with Australia at a yearly low, while mainland China stocks to end 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 …

Each of 3 Indexes fell … as the Dow closed DOWN -105.45 points or -0.32%, the S&P closed DOWN -60.91 points or -1.43% while the Nasdaq closed DOWN -318.65 points or -2.43%

Economic Data Docket:The U.S. economy grew even faster than expected in the third quarter, buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures and a variety of other domestic and global headwinds.

  • Gross domestic product, a measure of all goods and services produced in the U.S., rose at a 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in the second quarter. Economists had been looking for a 4.7% acceleration.
  • Commerce will also announce September durable goods orders, with the Labor Department disclosing weekly jobless claims.

 

 

Wednesday’s (10/25) RegMed Investors’ (RMi) closing bell: “yet another sector share pricing reverse. Is volatility giving investors 'false sense of security' as investors can’t take its eyes off the bond market.” … https://www.regmedinvestors.com/articles/13181

 

Ebb and flow:

Q4: October – 7 positive and 11 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.

I am passing on forecasting the daily indications – it’s just too mixed of some ups, downs and multiple flats i.e., going nowhere …

 

The BOTTOM LINE: If you're buying on weakness, you might be jumping onto a sinking ship even as …

  • The stock market suffered sharp losses Wednesday, with the Nasdaq undercutting recent lows, ending any rally attempts.
  •  The small-cap Russell 2000 set a fresh 52-week low.
  • The 10-year Treasury yield rose several basis points, while earnings reactions were generally poor.
  • Investors will also monitor Q3 GDP, durable goods and personal consumption expenditure data through the rest of the week. The U.S. Fed were under a media blackout ahead of their decision on interest rates on Nov. 1.

Algorithms might account for new patterns to fix anomalies in sector the performance. Remember, ETFs can’t define the cause and effect of relationship between the key factors that explain future outcomes!

 

Today’s relevancy from Wednesday’s session 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.

  • More earnings release, Sangamo therapeutics (SGMO) 11/1 Wednesday; Sage Therapeutics (SAGE) on 11/7 Tuesday, Fate Therapeutics (FATE) on 11/8 Wednesday, Intellia Therapeutics (NTLA) 11/9 Thursday

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 been weak
  • 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.