September 11, 2024 5:00pm

Despite the heavy selling on Wednesday morning, “uncle algo and his electronic trading dwarfs came into roost

Inflation was moderated in August as the Consumer Price Index (CPI) for August came in line with economist expectations

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.”

 

Wednesday: The Dow closed UP +124.75 points or +0.31%, the S&P closed UP +58.61 points or +1.07% while the Nasdaq closed UP +369.65 points or +2.17%

  • The CBOE Volatility Index briefly traded above 20 before easing back.

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 positive after having its clocks cleaned (Dow was down 909 points) in the morning session
  • After a hotter-than-expected inflation reading showed that on a "core" basis, which strips out the more volatile costs of food and gas, prices in August climbed +0.3% over the prior month, above expectations for a +0.2% increase
  • The new data comes as investors grapple with seasonal headwinds. September has been the worst month for the S&P 500 over the last 10 years, averaging a loss of more than 1% during that time. The broad-market index has also posted a loss in September in the last 4 years.

Wednesday’s advance/decline line at the open was negative with 9 incliners, 24 decliners and 2 flats; ending with a positive close at the close of 23 incliner, 10 decliners and 2 flats

  • Cell and gene therapy sectors seesawed trading in wide ranges

Metrics:  Wednesday, the IBB was up +0.48% and the XBI was up +0.82% while the VIX was down -1.41 points or down -7.39% at 17.67

 

RegMed Investors’ (RMi) pre-open: “a share pricing struggle by economic data?” … https://www.regmedinvestors.com/articles/13611

 

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

Q3/24

  • September – 3 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

 

Wednesday’s Closing Down (10 of 10):

  • LENZ Therapeutics (LENZ -$2.82 after Tuesday’s -$0.25 after Monday’s +$0.39),
  • BioLife Solutions (BLFS -$0.52 after Tuesday’s +$0.59 after Monday’s -$0.67),
  • Solid Biosciences (SLDB -$0.37 after Tuesday’s -$0.38 after Monday’s +$0.13),
  • CRISPR Therapeutics (CRSP -$0.15 after Tuesday’s +$0.72 after Monday’s +$0.25),
  • Adverum Biotechnologies (ADVM -$0.15),
  • Compass Therapeutics (CMPX -$0.08),
  • Generation Bio (GBIO -$0.05 after Tuesday’s +$0.32 after Monday’s -$0.01),
  • MiMedx (MDXG -$0.04),
  • Sangamo Therapeutics (SGMO -$0.0172 after Tuesday’s -$0.019 after Monday’s +$0.157),
  • Precigen (PGEN -$0.0059),

Flat (2):

  • Bellicum Pharmaceuticals (BLCM)
  • Homology Medicine (FIXX)

Wednesday’s Closing Up (10 of 23):

  • Alnylam Pharmaceuticals (ALNY +$5.70 after Tuesday’s +$3.05 after Monday’s +$6.38),
  • Regenxbio (RGNX +$0.92 after Tuesday’s +$0.39 after Monday’s -$0.08),
  • Ultragenyx Pharmaceuticals (RARE +$0.61 after Tuesday’s -$0.08 after Monday’s +$0.56),
  • Blueprint Medicine (BPMC +$0.57 after Tuesday’s -$0.56),
  • Beam Therapeutics (BEAM +$0.47),
  • Verve Therapeutics (VERV +$0.26),
  • Agenus (AGEN +$0-.18 after Tuesday’s +$0.33 after Monday’s +$0.18),
  • uniQure NV (QURE +$0.16 after Tuesday’s -$0.06 after Monday’s -$0.05),
  • Sage Therapeutics (SAGE +$0.14 after Tuesday’s -$0.09 after Monday’s -$0.06),
  • Ionis Pharmaceuticals (IONS +$0.14 after Tuesday’s -$5.94 after Monday’s +$1.44),

 

The BOTTOM LINE: The 2nd week’s Wednesday sector gained altitude after 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!

Investors are more holding on to their portfolio, tending to IGNORE corrections in the market or volatility, I believe!

 

Been a busy week as I also rebuild the back porch over the past 2 days and last Friday with a new tongue and groove flooring into to the redone porch. If any one made money, it was Loews.

 

“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>

 

Quote to ponder: staying … relevant!

 "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”

 

The top three (3) performing in the session: 

  • Wednesday: Alnylam Pharmaceuticals (ALNY), Regenxbio (RGNX) and Ultragenyx Pharmaceuticals (RARE)
  • 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: 

  • Wednesday: Lenz Therapeutics (LENZ), BioLife Solutions (BLFS) and Solid Biosciences (SLDB)
  • 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.