July 22, 2024 4:33pm

However, prepare for further and added market volatility

News: Ionis Pharmaceuticals (IONS +$2.79) positive results from the completed multiple ascending dose (MAD) portion of the P1/2 open-label study of ION582 in people with Angelman syndrome (AS) demonstrating consistent and encouraging clinical improvement on measures assessing all functional domains including communication, cognition and motor function.

I say today what others won't, so you can do what others can't by sticking to the FACTS!

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.”

 

Monday: The Dow closed UP +127.91 points or +0.32%, the S&P closed UP +59.41 points or +1.08% while the Nasdaq closed UP +280.63 points or +1.58%

Monday’s advance/decline line at the open was positive with 27 incliner, 3 decliners and 5 flats; ending with a positive close of 28 incliners, 4 decliners and 3 flats

  • the IBB was up +1.54% and the XBI was up +1.42%
  • the VIX was down -1.71 point or -10.39% at 14.81

Economic Data Docket: The Chicago Fed National Activity Index (CFNAI) for June 2024 was +0.05, down from +0.23 in May 2024. This was higher than the market expectation of -0.09.

 

Friday: The Dow closed DOWN -377.62 points or -0.93%, the S&P closed DOWN -39.59 points or -0.71% while the Nasdaq closed DOWN -144.28 points or -0.81%

Friday’s advance/decline line at the open was negative with 16 incliner, 17 decliners and 2 flats; ending with a negative close of 10 incliners, 23 decliners and 2 flats

  • the IBB was down -0.07% and the XBI was down -0.03%
  • the VIX was up +0.65 point or +4.08% at 16.58

 

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 rose Monday due to a bounce in tech shares after the broad market index suffered its worst weekly loss since April last week.

While, the Russell 2000 traded 1% higher, adding to its 6% pop from last week.

 

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

Q3/24

  • July: 1 market holiday. 1 day off, 5 negative, 1 neutral and 8 positive closes

Q2/24 -June: 1 market holiday, 7 positive and 12 negative closes

  • May – 1 holiday, 11 positive and 12 negative closes
  • April - 16 negative and 6 positive closes

 

Monday’s Closing Down (4 of 4):

  • Alnylam Pharmaceuticals (ALNY -$2.24 after Friday’s +$1.13),
  • Adverum Biotechnologies (ADVM -$0.41 after Friday’s -$1.31)
  • uniQure NV (QURE -$0.11),
  • Sangamo Therapeutics (SGMO -$0.0020),

Flat (3):

  • Bellicum Pharmaceuticals (BLCM) – dropped)
  • Harvard Apparatus RT (OTCQB: HRGN)
  • Homology Medicine (FIXX) – under $1.00

Monday’s Closing Up (10 of 28):

  • Ionis Pharmaceuticals (IONS +$2.79 after Friday’s +$0.49),
  • Ultragenyx Pharmaceuticals (RARE +$1.91 after Friday’s -$0.23),
  • Blueprint Medicine (BPMC +$1.84 after Friday’s +$1.51),
  • CRISPR Therapeutics (CRSP +$1.68 after Friday’s -$1.65),
  • Vericel (VCEL +$1.47 after Friday’s -$1.12),
  • Beam Therapeutics (BEAM +$1.11 after Friday’s +$0.48),
  • Agenus (AGEN +$0.86 after Friday’s -$1.31),
  • BioLife Solutions (BLFS +$0.66 after Friday’s -$0.43),
  • Lenz Therapeutics (LENZ +$0.53),
  • Sage Therapeutics (SAGE +$0.51 after Friday’s +$0.12),

 

The BOTTOM LINE:  What more is there to write/say … the oversold rebounded with help from “uncle algo and his electronic dwarfs”!

Sector optimism elevated Monday with help after accumulated pessimism Friday, Thursday, Wednesday with negative closes Tuesday and Monday’s optimism with 2 positive close last week  with 5 session positive closes the previous week.

 

The political landscape takes center stage as President Biden announced his withdrawal from the presidential race, endorsing VP Harris as the potential Democratic nominee.

  • The political shock could inject more volatility into an already battered stock market, distracting focus from this week's flood of earnings and key inflation release.

 

insight will be forth coming into the economy and the consumer by Thursday's report on Q2 GDP and Friday's update on the Fed's preferred inflation metric, the Personal Consumption Expenditures (PCE) index.

  • There’s more room for “tactical downside in the weeks to come as we enter the gauntlet of the weakest two months and only consecutive losing months for equities, with markets at all-time highs.

 

Q3 and July to date: last week and today

  • Monday ended with a positive close of 28 incliners, 4 decliners and 3 flats
  • Friday ended with a negative close of 10 incliners, 23 decliners and 2 flats
  • Thursday ended with a negative close of 3 incliners, 30 decliners and 2 flats
  • Wednesday ended with a negative close of 4 incliners, 29 decliners and 2 flats
  • Tuesday ended with a positive close of 30 incliners, 2 decliners and 3 flats
  • Monday ended with a positive close of 20 incliners, 9 decliners and 6 flats

 

Electronic trading pops the sector

  • There is past evidence of a slowdown coming (it’s the contrarian in me) and it's going to become even more thin as we go forward into Q2 earnings season

 

Due “dates” for Q2 LPS (loss per-share) earnings releases:

  • Sage Therapeutics (SAGE) on Wednesday, 7/31
  • MiMedx (MDXG) on Wednesday, 7/31
  • Vericel (VCEL) on Thursday, 8/1
  • Alnylam Pharmaceuticals (ALNY) on Thursday, 8/1
  • Blueprint Medicine (BPMC) on Thursday, 8/1

 

The top three (3) performing in the session:  

  • Monday: Ionis Pharmaceuticals (IONS), Ultragenyx Pharmaceuticals (RARE) and Blueprint Medicine (BPMC)

The worst three (3) in the session:  

  • Monday: Alnylam Pharmaceuticals (ALNY), Adverum Biotechnologies (ADVM) and uniQure NV (QURE)

 

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 it’s 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.