October 27, 2023 7:27am
The month seems to be limping after tripping following incremental footprints while upcoming earnings’ paths are dangerous
Pre-Open Indications: 2 Sell into Strength, 2 Positive and 2 negative Indications
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 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
Dow futures are DOWN -0.12% or (-38 points), the S&P is UP +0.29% or (+12 points) as the Nasdaq is UP +0.75% or (+106 points)
U.S. stock futures rose Friday, trying to recover some of this week’s steep losses,
European stocks were mixed,
Asia-Pacific markets saw a broad sell-off.
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 three (3) indexes dropped as the Dow closed DOWN -251.63 points or -0.76%, the S&P closed DOWN -49.54 points or -1.18% while the Nasdaq closed DOWN -225.62 points or -1.76%.
During Thursday’s session, the Nasdaq dived having slid into correction territory on Wednesday. The Nasdaq is now down more than 12% since its high close for the year in July.
So far, in October, the S&P 500 is down 3.52%, the Nasdaq is off 4.72%, and the Dow is down 2.16%.
Economic Data Docket: the personal consumption expenditures reading for September. The PCE is the Fed’s preferred inflation gauge. Economists are calling for a core PCE increase of 0.3% in September, and a year over year increase of 3.7%.
Thursday’s (10/26) RegMed Investors’ (RMi) closing bell: “market dives, sector thrives. I am not lazy in defining any upside or downside; everyone needs to re-think the potential of advancers/decliners in a capricious market” … https://www.regmedinvestors.com/articles/13183
Ebb and flow:
Q4: October – 8 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.
Sell into Strength:
Thursday’s closing price, closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Blueprint Medicine (BPMC) closed up +$11.26 with a positive +$1.21 or +2.19% pre-open indication
Ionis Pharmaceuticals (IONS) closed up +$1.26 with a neutral aftermarket indication.
Positive Indications:
Thursday’s closing price, closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Verve Therapeutics (VERV) closed up +$0.15 with a positive +$0.27 or +2.84% aftermarket indication.
Sage Therapeutics (SAGE) closed up +$0.29 with a positive +$0.11 or +0.49% pre-open indication.
Negative Indications:
Thursday’s closing price,
closing “numbers” with aftermarket dollar ($) and cent ($0.00) value and percentage (%)
Beam Therapeutics (BEAM) closed up +$0.25 with a negative -$0.59 or -3.01% pre-open indication.
Ultragenyx Pharmaceuticals (RARE) closed up +$1.68 with a negative -$1.50 or -4.35% aftermarket indication
The BOTTOM LINE: The RegMed sector suffers the tourist routine … most traders hear a piece of news, contemplate a pumping to buy and a dumping to sell.
Today’s relevancy from Thursday’s session and the week’s perspective:
- Pick your poison, trade any ups, buy into some bottoms, build cash position; as buying the lows - they can eventually be the overbought through unbridled speculation and then trade again.
What the sector patterns and markets are telling me:
- It’s Friday, earnings season has begun and the end-of-month is two (2) sessions coming due
- 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 fluctuating
- Uncertainty reigns
- An aftermarket that reeks of illegibility
- 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.
