June 7, 2024 4:42pm

All the electronic trading and algorithms “rules” couldn't put Humpty together again – today

The days of being long are not the strongest investing rationale as the cell and gene therapy sector runs out of buyers, it runs into trouble (just like a fire that runs out of wood).

 I say today what others won't, so you can do what others can't!

Never leave an investor uninformed! 

I follow the dictum, quoting Churchill that “short words are best, and the old words when short are best of all.”

I answer or qualify the sector’s equity’s share pricing mobility; with an emphasis on which company is gaining or losing stride in your portfolio in the short and near-term

 

Friday: The Dow closed DOWN -87.18 points or -0.22%, the S&P closed DOWN -5.97 points or -0.11% while the Nasdaq closed DOWN -39.99 points or -0.23%

 

RegMed Investors’ (RMi) pre-open post: “until the all-clear, the quickest way to double your money is to fold it over and put it back into your pocket. Following Thursday’s session review, “Sometimes you get and sometimes you get got” … https://www.regmedinvestors.com/articles/13490

 

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 were stunted from pressure following Friday’s jobs report.

For the 1st week of June, the Dow has a+ 0.6% gain, the S&P 500 +1.1% and the Nasdaq is on pace for a +1.7% advance.

Economic Data Docket: Nonfarm payrolls increased by 272,000 in May, above the 190,000 estimate and April’s 175,000 gain. Average hourly wages increased 0.4% last month and ticked up 4.1% from a year ago.

  • However, even with the job gains, the unemployment rate ticked higher to 4%.

 

Metrics: Advance/Decline (A/D) Line:

Friday’s advance/decline line at the open was negative with 3 incliner, 28 decliners and 4 flats; ending with a negative close of 7 incliners, 24 decliners and 4 flats

  • Friday, the iShares NASDAQ Biotechnology (IBB) was down -0.64% and the SPDR S&P Biotech ETF (XBI) was down -1.57%
  • Friday, The VIX down -0.33 point or -2.62% at 12.25

Thursday’s advance/decline line at the open was negative with 9 incliner, 23 decliners and 3 flats; ending with a negative close of 8 incliners, 23 decliners and 4 flats

  • Thursday, the IBB was down -0.33% and the XBI was down -1.38%
  • Thursday the VIX was down -0.09 point or -0.71% at 12.54

Wednesday’s advance/decline line at the open was negative with 11 incliner, 21 decliners and 3 flats; ending with a positive close of 24 incliners, 9 decliners and 3 flats

  • Wednesday, the IBB was up +1.90 % and the XBI was up +3.24%
  • Wednesday the VIX was down -0.50 point or -3.80% at 12.66.

Tuesday’s advance/decline line at the open was negative with 14 incliner, 17 decliners and 4 flats; ending with a negative close of 13 incliners, 19 decliners and 3 flats

  • Tuesday, the IBB was down -0.01% and the XBI was down -0.27%
  • Tuesday the VIX was up +0.05 point or +0.38% at 13.16

Monday’s advance/decline line at the open was positive with 29 incliner, 2 decliners and 4 flats; ending with a positive close of 18 incliners, 14 decliners and 3 flats

  • Monday, the IBB was up +1.21% and the XBI was up +2.57%
  • Monday, the VIX was up +0.20 point or +1.55% at 13.12

 

Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:

  • June: 2 positive and 3 negative closes
  • Friday closed negative with 7 incliners, 24 decliners and 4 flats
  • Thursday closed negative with 8 incliners, 23 decliners and 4 flats
  • Wednesday closed positive with 24 incliners, 9 decliners and 3 flats
  • Tuesday closed negative with 13 incliners, 19 decliners and 3 flats
  • (6/3) Monday closed positive with 18 incliners, 14 decliners and 3 flats

 

Friday’s Closing Down (10 of 24):

  • CRISPR Therapeutics (CRSP -$2.09 after Thursday’s +$0.24)
  • Vericel (VCEL -$1,43),
  • Blueprint Medicine (BPMC -$1.08 after Thursday’s -$1.40 after Wednesday’s +$3.93, Tuesday’s -$2.95 and Monday’s -$0.72),
  • Ionis Pharmaceuticals (IONS -$0.92),
  • Beam Therapeutics (BEAM -$0.86 after Thursday’s -$0.42),
  • BioLife Solutions (BLFS -$0.46 after Thursday’s -$0.78, Wednesday’s +$0.63, Tuesday’s -$0.35 and Monday’s -$0.22),
  • Ultragenyx Pharmaceuticals (RARE -$0.37 after Thursday’s +$0.32 after Wednesday’s +$0.53),
  • Prime Medicine (PRME -$0.32 after Thursday’s +$0.31),
  • Intellia Therapeutics (NTLA -$0.22),
  • Sage Therapeutics (SAGE -$0.19),

Flat (4):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Compass Therapeutics (CMPX)
  • Harvard Apparatus RT (OTCQB: HRGN – its 14th flat sessions)
  • Homology Medicine (FIXX) – under $1.00

Friday’s Closing Up (7 of 7):

  • Alnylam Pharmaceuticals (ALNY +$3.48 after Thursday’s -$2.76, Wednesday’s +$2.30, Tuesday’s -$0.69 and Monday’s +$2.02),
  • Lenz Therapeutics (LENZ +$0.54 after Thursday’s -$1.09, Wednesday’s +$1.45, Tuesday’s -$0.40 and Monday’s -$0.21),
  • Solid Biosciences (SLDB +$0.34),
  • Regenxbio (RGNX +$0.32 after Thursday’s -$0.76 after Wednesday’s +$0.20, Tuesday’s -$0.44 and Monday’s +$0.41),
  • Mesoblast (MESO +$0.32 after Thursday’s -$0.46, Wednesday’s -$0.30, Tuesday’s +$0.20 and Monday’s -$0.06),
  • Agenus (AGEN +$0.04 after Thursday’s -$1.01),
  • uniQure NV (QURE +$0.02)

 

The BOTTOM LINE: I Hadn’t changed my words or view…

 “Attention remained laser-focused on week’s busy economic calendar; the reality of the markets remains in MY mind - questionable along with the cell and gene therapy sectors STAY in a DECLINE, now 2 sessions in a row and 3 out of 5 sessions to far in June.”

May jobs report revealed 272,000 nonfarm jobs were added to the US economy. The reading was hotter than expected, raising concerns about future policy decisions from the Fed.

  • However, the headline unemployment rate edged higher, to 4%, ending its streak of sub-4% readings at a record 27 consecutive months.
  • Also, the labor-force-participation rate, eased to 62.5%.

Roughly half of all new jobs created in the U.S. economy since October have gone to immigrants, many of those illegals, according to a new analysis by the House Budget Committee.

Volume fell on the Nasdaq while …

On the same path, benchmark 10-year Treasury note yields were marked 10 basis points higher at 4.414% following the data release, while 2-year notes added 11 basis points to 4.855%.

 

An on-target <analogous> quote, JPMorgan Asset Management portfolio manager Kelsey Berro give insight into the May jobs report and what it means for the broader market moving forward…

  • Berro argues the soft landing has arrived and that it is now time to extend the analogy: "So we've landed, but the plane is still moving on the ground, and we're looking to taxi towards the gate and we're still questioning, are we going to crash into the gate, or are we going to stop short of the gate, or are we going to get right to the gate and have a nice entrance into the airport?
  • So that's really still what the market is grappling with.
  • And that's why you see these very intense moves in the bond market."

 

The cell and gene therapy sector, Friday also with Thursday ending in the toilet after Wednesday’s return to the upside after popping the bed in decline on Tuesday as investors weighed signs the US economy might be starting to show cracks.

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, we must be better informed on what fluctuating markets can do to a stock, or what impact follow through sessions miss on indications on or expectations can have on a development stage company.

Every time I see job, payroll and economic related data to be released new highs, I say BYE!

Reiterating, “Net-net I am still expecting a bumpy ride for US equities as we stride through the month of June.”

 

The top three (3) performing in the session:  

  • Friday: Alnylam Pharmaceuticals (ALNY), Solid Biosciences (SLDB) and Lenz Therapeutics (LENZ)
  • Thursday: Ultragenyx Pharmaceuticals (RARE), Prime Medicine (PRME) and CRISPR Therapeutics (CRSP),
  • Wednesday: Blueprint Medicine (BLMC), Lenz Therapeutics (LENZ) and CRISPR Therapeutics (CRSP),
  • Tuesday: CRISPR Therapeutics (CRSP), Ionis Pharmaceuticals (IONS) and Mesoblast (MESO)
  • Monday: CRISPR Therapeutics (CRSP), Intellia Therapeutics (NTLA) and Alnylam Pharmaceuticals (ALNY),

The worst three (3) in the session:  

  • Friday: CRISPR Therapeutics (CRSP), Vericel (VCEL) and Beam Therapeutics (BEAM)
  • Thursday: Alnylam Pharmaceuticals (ALNY), Blueprint Medicine (BLMC) and Lenz Therapeutics (LENZ)
  • Wednesday: Mesoblast (MESO), Intellia Therapeutics (NTLA) and Ionis Pharmaceuticals (IONS)
  • Tuesday: Blueprint Medicine (BLMC), BioLife Solutions (BLFS) and Lenz Therapeutics (LENZ)
  • Monday: Blueprint Medicine (BLMC), Vericel (VCEL) and Caribou Biosciences (CRBU)

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!”

 

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. 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.

Henry McCusker, the editor, and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication. 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.