August 25, 2023 7:40am
Fed chief Powell's speech today has big implications for rate hikes and investors after stocks suffered a big reversal Thursday
If you’re looking for sector intel, ideas and facts or Insight in a volatile climate, RMi defines the extenuating factors of share pricing.
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8:00 a.m. edition
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 will happen behind the headlines today, not tomorrow or yesterday
Dow futures are UP +$0.31% or (+107 point), S&P futures are UP +0.22% or (+9 points) and NASDAQ futures are +0.02% or (+3 points) early in the pre-open – so far
U.S. stock futures rose Friday waiting for Fed Chair Powell’s Jackson Hole speech.
European markets made a muted start,
Asia-Pacific markets fell across the board.
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 …
Indexes fell Thursday as investors looked ahead to a key speech from Fed Chair Powell as the Dow closed DOWN -373.56 or -1.08%, the S&P closed DOWN -59.70 or -1.35% while the Nasdaq closed DOWN -257.06 points (-1.87%)
Thursday, the Dow suffered its biggest pullback since March, the S&P 500 held on +0.2% and the Nasdaq hanged on to weekly gains of +1.3% yet, down for the session taking the cell and gene therapy sector with it
Economic Data Docket: Powell’s comments, will begin Friday at 10:05 am. ET,
Thursday’s (8/24) RegMed Investors’ (RMi) closing bell: “Nasdaq evaporates taking cell and gene therapy equities with it … https://www.regmedinvestors.com/articles/13093
Ebb and flow:
Q3: August – 6 positive and 12 negative closes
· July - 1 holiday, 12 positive and 8 negative close
Q2/23 -
· June -1 Holiday, 8 negative and 11 positive closes
· May – 10 negative and 12 positive closes
· April ended - 1 holiday, 8 positive close and 11 negative closes
Q1/23 –-
· March – ended with 10 positive and 13 negative closes
· February – 1 holiday, 2 vacation, 7 negative and 8 positive closes
· January – 2 holidays, 11 positive and 9 negative closes
Companies in my headlights – It’s your decision; I provide ideas and context: INDICATIONS
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 a forecast as the after and pre-open markets are very lean and spotty
The BOTTOM LINE:
I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all, as I try to keep it simple and short!
U.S. equity futures inched higher Friday, following on from the worst day for the Dow since March, as investors looked cautiously to a key address from Fed Chair Powell later in the session while tracking another move higher in Treasury bond yields.
Let’s get to the point, few adverbs and even fewer adjectives, no vacillating; I get right to the point, telling investors what has meaning and why news or indications matter.
My “posts” are conveyed with a simplicity of language to highlight what is informative. I am mostly an optimist, yet I also believe that patterns exist.
It “ain’t” been a good August for the cell and gene therapy sector as it suffers 6 positive and 11 negative closes so far… which could also be a set-up for profit reaping in view of economic and inflation “readings”
I am NOT confident that some cell and gene therapy sector equities can continue ascending to the upside; unfortunately, it is a true “guessing” game!
Risk is riskier …
There's ALSO nothing wrong with standing pat in the short run, holding on to sizable existing exposure.
From Thursday’s post, CONSIDER these quotes: The percentage of financial newsletter editors and advisors who see short-term weakness ahead in stocks surged to 37.1% in the latest weekly Investors Intelligence survey, up from 32.9% last week. The reading is the highest since the fall of 2022, after which the S&P 500 went on to fall to 3600 from 4280, the survey said.
“This group is raising cash after recently calling for a trading top,” II said. “The recent shifts want to lock in gains before they are gone.” Just last month, the number of advisors foreseeing a correction was the lowest since early January, “pointing to elevated risk and the need for defensive measures. This category looks for short term market weakness, and if declines continue their number could increase further. As cash is raised while markets fall, there is new fuel for the next rally,” said II.
The number of bulls continued to shrink, falling to 44.3% from 47.1% last week and a July high of 57.1%, which nearly matched the Nov. 2021 peak of 57.2%. Bears dropped to 18.6% from 20.0% a week ago. The spread between the numbers of bulls and bears narrowed to 25.7 points from 27.1 last week and a two-year high of 38.5 reached in July. <Scott Schnipper, CNBC>
I hate to be so negative or contrarian but, this is a NO spin zone and truth is its product; I can always be 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.
