September 10, 2024 4:42pm
The current state of the equity market is uncertain and investors should rejigger positions in their portfolios
Focus is now on a fresh consumer inflation print due Wednesday; followed by the read-out on pricing from the producer inflation report on Thursday, the last inflation inputs before the Fed's policy decision on Sept. 18
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.”
Tuesday: The Dow closed DOWN -92.63 points or -0.23%, the S&P closed UP +24.47 points or +0.45% while the Nasdaq closed UP +141.28 points or +0.84%
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 closed mixed with rotation in the mix still ending with a proportion of volatility
- Reiterating, “Traders have their eyes on two key economic reports that will likely be the next catalysts for stocks. The consumer price index report for August is due out Wednesday, followed by the producer price index on Thursday.
- Investors are betting that a widely anticipated interest rate cut at the Fed’s Sept. 17-18 meeting could help assuage concerns over a weakening economy.” <CNBC>
Tuesday’s advance/decline line at the open was negative with 9 incliners, 22 decliners and 4 flats; ending with a positive close at the close of 19 incliner, 14 decliners and 2 flats
Metrics: Tuesday, the IBB was up +0.27% and the XBI was up +0.21% while the VIX was down -0.32 points or down -1.65% at 19.10
RegMed Investors’ (RMi) pre-open: “maintaining an upside pricing or? Will volatility constrain sectors comings sessions post Monday’s ascension?” … https://www.regmedinvestors.com/articles/13609
Ebb and flow of MY covered sector cell and gene therapy session daily “endings”:
Q3/24
- September – 2 positive and 4 negative closes
- August: 1 neutral, 10 positive and 11 negative closes
- July: 1 market holiday. 1 day off, 6 negative, 1 neutral and 12 positive closes
Tuesday’s Closing Down (10 of 14):
- Solid Biosciences (SLDB -$0.38 after Monday’s +$0.13),
- Blueprint Medicine (BPMC -$0.56),
- Ionis Pharmaceuticals (IONS -$5.94 after Monday’s +$1.44),
- Vericel (VCEL -$0.29 after Monday’s -$1.33),
- LENZ Therapeutics (LENZ -$0.25 after Monday’s +$0.39),
- Sage Therapeutics (SAGE -$0.09 after Monday’s -$0.06),
- Ultragenyx Pharmaceuticals (RARE -$0.08 after Monday’s +$0.56),
- uniQure NV (QURE -$0.06 after Monday’s -$0.05),
- Mesoblast (MESO -$0.04),
- Cellectis SA (CLLS -$0.03),
- Sangamo Therapeutics (SGMO -$0.019 after Monday’s +$0.157),
Flat (2):
- Bellicum Pharmaceuticals (BLCM)
- Homology Medicine (FIXX)
Tuesday’s Closing Up (10 of 19):
- Alnylam Pharmaceuticals (ALNY +$3.05 after Monday’s +$6.38),
- CRISPR Therapeutics (CRSP +$0.72 after Monday’s +$0.25),
- BioLife Solutions (BLFS +$0.59 after Monday’s -$0.67),
- Regenxbio (RGNX +$0.39 after Monday’s -$0.08),
- Fate Therapeutics (FATE +$0.37),
- Agenus (AGEN +$0.33 after Monday’s +$0.18),
- Prime Medicine (PRME +$0.32),
- Generation Bio (GBIO +$0.32 after Monday’s -$0.01),
- Intellia Therapeutics (NTLA +$0.29),
- Editas Medicine (EDIT +$0.26 after Monday’s -$0.08),
The BOTTOM LINE: The 2nd week’s Tuesday dropped the sector in the puddle after Monday’s closed positive following the 1st short week of September ending with 4 negative closes - a bust!
- After having to contend with September's seasonal volatility, as the cell and gene therapy sector equities were the poster child for risk.
Are we prepared for … another dive in share pricing?
- As I had stated, “uncle algo and his electronic trading dwarfs” made the 2 sessions, this week!
“Traders have their eyes on two key economic reports that will likely be the next catalysts for stocks. The consumer price index report for August is due out Wednesday, followed by the producer price index on Thursday.
- Investors are betting that a widely anticipated interest rate cut at the Federal Reserve’s Sept. 17-18 meeting could help assuage concerns over a weakening economy.” <CNBC>
Quotes to ponder: staying …
"I don't think the volatility (^VIX) is over yet. I think we're going to bounce around, but I don't think we're going to have a sustainable trend in either direction. I don't think volatility necessarily means disaster, right? That's not what we're saying here. What we're saying is expect the markets to be choppy. Over the next few months, investors will be mostly trading on data points since the next round of earnings won't be until mid-October.” < Gradient Investments senior portfolio manager Jeremy Bryan”
“If Wednesday's Consumer Price Index (CPI) inflation numbers comes in better than expected, the Fed will likely move "slow and steady" with its interest rate cutting cycle, if they need to pick up and get more aggressive as we move through the rest of this year or into next year, they can always do that. But I just don't see the real need to make that move just yet.” < Miller Tabak managing director and equity strategist Matt Maley>
The top three (3) performing in the session:
- Tuesday: Alnylam Pharmaceuticals (ALNY), CRISPR Therapeutics (CRSP) and BioLife Solutions (BLFS)
- Monday: Alnylam Pharmaceuticals (ALNY), Ionis Pharmaceuticals (IONS) and Ultragenyx Pharmaceuticals (RARE)
The worst three (3) in the session:
- Tuesday: Ionis Pharmaceuticals (IONS), Blueprint Medicine (BPMC) and Solid Biosciences (SLDB)
- Monday: Vericel (VCEL), BioLife Solutions (BLFS) and Blueprint Medicine (BPMC)
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.
