March 18, 2024 7:45am

I hate to answer a question with a question; yet, are we just helping the oversold get to being overbought and subject to electronic trading?

Pre-open Indication: 1 Sell into Strength, 4 Positive and 1 Negative Indications

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Remember that overnight and pre-open actions’ futures and global markets doesn't necessarily translate into actual trading in the today’s market session.

I answer or qualify the sector’s equity’s movement; with an emphasis on which company is gaining or losing stride in their portfolio for the short-term

 

Monday: The pre-open Dow futures are UP +0.10% or (+40 points), the S&P futures are UP +0.65% or (+33` points) as the Nasdaq futures are UP +1.09% or (+197 points)

Futures are positive and gaining momentum on Monday as we look ahead to monetary policy guidance from the Fed later this week.

European markets had a lackluster start.

Asta Pacific markets, all closed higher.

 

Henry’omics:

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

Indexes fell on Friday as the Dow closed down -190.89 points or -0.49%, the S&P closed DOWN -33.53 points -0.65% while the Nasdaq closed DOWN -155.35 points or -0.96%.

Economic Data Docket:  New York Fed Services Business activity, March (-7.3 previously); NAHB housing market index, March (48 expected, 48 previously)

 

Friday’s night RegMed Investors (RMi) Closing Bell: “triple witching Friday. Covering as futures and options on stock indexes and individual stocks all expire simultaneously.” …  https://www.regmedinvestors.com/articles/13374

 

Q1/24: march – 4 positive and 7 negative closes

  • February – 1 market holiday, 11 positive and 9 negative closes
  • January: 2 holidays, 11 negative and 8 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.

Sell into Strength Indications:

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

Solid Biosciences (SLDB) closed up +$0.80 after Thursday’s +$0.05 and Wednesday’s +$0.83 with a positive +$0.45 or +3.44% pre-open indication.

 

Negative Indication:

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

Ultragenyx Pharmaceuticals (RARE +$0.72 after Thursday’s -$1.90, Wednesday’s +$0.89, Tuesday’s -$0.85 and Monday’s -$2.02 with a negative -$0.00 or -0% pre-open indication.

 

Positive Indications:

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

Beam Therapeutics (BEAM) closed up +$0.80 after Thursday’s -$2.76, Wednesday’s +$1.57, Tuesday’s -$0.77 and last Monday’s -$0.96 with a positive +$0.33 or +0.93% pre-open indication.

Blueprint Medicine (BPMC) closed up +$2.79 after Thursday’s -$2.89, Wednesday’s +$0.90, Tuesday’s +$0.23 and last Monday’s -$2.83 with a positive +$2.28 or +2.52% pre-open indication.

CRISPR Therapeutics (CRSP) closed up +$0.94 after Thursday’s -$2.77, Wednesday’s -$0.52, Tuesday’s -$1.52 and last Monday’s -$2.10 with a positive +$0.55 or +0.75% pre-open indication.

Editas Medicine (EDIT) closed down-$0.02 after Thursday’s -$0.44 with a positive +$0.27 or +3.32% pre-open indication.

 

The BOTTOM LINE: It may be a time for investors to BUY a few and then PAUSE as well, holding significant exposure but with cash on hand.

  • Cut losses quickly and consider taking some profits.

March has had 3 positive and 6 negative cell and gene therapy sector closes:

  • Friday closed up with a positive 23, incliners, 10 decliners and 2 flats
  • Thursday closed with a negative 3 incliners, 30 decliners and 2 flats
  • Wednesday closed with a positive 21 incliners, 13 decliners and 2 flats
  • Tuesday closed with a negative close of 6 incliners, 27 decliners and 2 flats
  • (3/11) Monday closed with a negative close of 7 incliners, 28 decliners and 0 flat,
  • Friday closed with a negative close of 16 incliners, 19 decliners and 0 flat,
  • Thursday closed negative close of 16 incliners, 17 decliners and 2 flats
  • Wednesday closed positive with 21 incliners, 14 decliners and 0 flat,
  • Tuesday closed negative with 5 incliners, 29 decliners and 1 flat,
  • (3/4) Monday’s closed negative with 6 incliners, 27 decliners and 2 flats.
  • (3/1) Friday closed positive with 23 incliners, 10 decliners and 2 flats

 

The remainder of the month’s trading sessions will be critical as the RegMed sector continues earnings’ in LPS (loss-per-share) season, estimates and consensus which set market reaction and will report “runways” and those whose cash positions render their future questionable.

25 (of 35 covered companies) have reported …13 are left to release earnings of my covered group.

 

There is ALWAYS a however, the cell and gene therapy sector is DUE a rebound EVEN if it is due to algorithms and electronic trading RECOGNIZING risk and the oversold!!

I STILL reiterate, “Don't chase the cell and gene therapy sector.” Short and non-sweet: SELL into STRENGTH – accumulate some “powder” i.e., cash!

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From Friday’s market:

  • Indexes rally had a mixed week.
  • The Dow and S&P 500 were little changed while the Nasdaq and small-cap Russell 200 retreated below their 21-day lines.
  • The Nasdaq is back to about where it was on Feb. 12, while the Russell 2000 has dropped below its late December peak.
  • The 10-year Treasury yield shot up 21.5 basis points to 4.3%, surging toward 2024 highs on hot inflation reports heading into the Fed meeting. <IBD>

 

On this coming Wednesday, that tension will finally resolve. The US central bank is set to release its latest monetary policy decision and updated economic projections at 2:00 p.m. ET on Wednesday afternoon, with investors looking for an answer to one key question: does the Fed still think it will cut rates three times in 2024?

 

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.

 

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.