August 5, 2024 7:52am

A weakening sector in the middle of earnings season is not an ideal time to be ramping up exposure

Pre-open Indications: 2 Positive, 2 Negative and 1 Sell into Strength

Earnings this week: Voyager Therapeutics (VYGR), Sangamo Therapeutics (SGMO), Editas Medicine (EDIT), AxoGen (AXGN), BioLife Solutions (BLFS) and Intellia Therapeutics (NTLA)

A daily analytic read-out from RMi is constructed of signals thought-provoking share pricing situations. 

 

Never leave an investor uninformed

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

My interpretation of the morning’s numbers is written to be informative; it’s built on what happened or will happen behind the headline today!

Vacation is not quite over, "her" honey do list has another page!

 

Monday: The pre-open Dow futures are DOWN -2.01% or (-800 points), the S&P futures are DOWN -2.86% or (-153 points) as the Nasdaq futures are DOWN -4,24% or (-786 points)

  • U.S. stock futures tumbled Monday as part of a global market sell-off centered around U.S. recession fears,
  • European markets plunge 2.6% as global volatility deepens,
  • Asia-Pacific markets continued the sell-off from last week.

 

Henry’omics:

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

Friday: The Dow closed DOWN -610.71 points or -1.51%, the S&P closed DOWN -100.12 points or -1.84% while the Nasdaq closed DOWN -417.98 points or -2.43%

Friday’s advance/decline line ended with a negative close of 6 incliners, 27 decliners and 2 flats

For the week, the Dow slid about -2.1%. the S&P 500 fell more than -2.1%, while the Nasdaq fell over -3.7%.

The week ahead won't provide much new macroeconomic fodder for investors, with updates on activity in the services sector and weekly jobless claims expected to be the main releases in focus.

Economic Data Docket: S&P Global US Services PMI, July final (56 expected, 56 previously); S&P Global US Composite PMI, July final (55 prior); ISM Services index (51.3 expected, 48.8 previously)

 

Friday’s RegMed Investors (RMi) Closing bell: share pricing schizophrenia strikes a volatile week. Earnings season LPS (loss-per-share) gravity strikes.” … https://www.regmedinvestors.com/articles/13567

 

Q3/24:

  • August – 2 negative closes
  • July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes

Q2/24: 

  • June – 1 market holiday, 7 positive and 1 negative closes
  • May – 1 holiday, 11 positive and 11 negative closes
  • April - 16 negative and 6 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:

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

Ultragenyx Pharmaceuticals (RARE) closed up +$6.32 after Thursday’s -$0.87, Wednesday’s +$0.31, Tuesday’s -$0.53 and Monday’s +$0.38 with a positive +$1.50 or +2.97% aftermarket.

 

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 down -$2.88 and Thursday’s -$1.33 with a positive +$0.17 or +0.62% aftermarket.

CRISPR Therapeutics (CRSP) closed down -$3.74 after Thursday’s -$2.44, Wednesday’s +$0.88, Tuesday’s -$2.09 and last Monday’s +$0.58 with a positive +$0.39 or +0.76% aftermarket indication.

 

Negative Indications:

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

Alnylam Pharmaceuticals (ALNY) closed up +$3.44 after Thursday’s +$31.15, Wednesday’s +$3.65, Tuesday’s -$2.47 and Monday’s +$1.44 with a negative -$2.05 or -0.75% aftermarket

Ionis Pharmaceuticals (IONS) closed down -$2.19 after Thursday’s +$1.86, Wednesday’s -$0.32. Tuesday’s -$0.46 and Monday’s -$1.21 with a negative -$1.03 or -2.10% aftermarket.

 

 

The BOTTOM LINE: The stock market rally had a rough week … the Russell 2000 which hit a 30-month high Wednesday afternoon, finishing down 6.7%.

  • For the balance of the month, investors will focus most on share pricing in regard to earnings EPS and meeting expectations!
  • It’s tough to scale-back or even add sector holdings during earnings’ season, however buy points are a signal for exposure rendition.

 

Market Fear Spikes

  • The CBOE Volatility Index, or VIX, shot up Friday to its highest levels since March 2023. The market fear gauge topped the peaks in October 2023 and April 2024.
  • Excessive fear can signal at least a short-term market bottom, but it doesn't have to happen right away and it doesn't have to last. Also, market fear could go a lot higher if recession worries continue to swell. <IBD>

Investors should be extremely wary about new buys while reducing exposure as they cut losers.

 

The top three (3) performing in Friday’s session:

  • Ultragenyx Pharmaceuticals (RARE), Alnylam Pharmaceuticals (ALNY) and Sangamo Therapeutics (SGMO)

The lowest three (3) in Friday’s session:

  • CRISPR Therapeutics (CRSP), Blueprint Medicine (BPMC) and Beam Therapeutics (BEAM)

 

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

  • Voyager Therapeutics (VYGR) Tuesday, 8/6
  • Sangamo Therapeutics (SGMO) Tuesday, 8/6
  • Editas Medicine (EDIT) Wednesday, 8/7
  • AxoGen (AXGN) on Thursday, 8/8
  • BioLife Solutions (BLFS) on Thursday, 8/8
  • Intellia therapeutics (NTLA) on Thursday, 8/8

 

Watch the “numbers, charts and indicators” measure the daily, weekly, and monthly charts can filter out or lessen the noise of back-and-forth share pricing from sector rotation.

  • The short-term moving averages help you identify the momentum of the trend — that is, overbought or oversold

 

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.
  • I am more frequently right than consequentially wrong; if I wanted to be liked, I wouldn’t have been an analyst/journalist.

 

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 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.

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.