September 13, 2024 5:55pm

As volatility roared, investors or trading programs?

News: bluebird bio (BLUE +$0.0318 to $0.6058) completed the restatement of its consolidated financial statements for the year ended 12/31/22, and for each of the 1st 3 Qs of 2022 and 2023; filing its Annual Report on Form 10-K for the multiple years with the SEC

Looking ahead toward the Fed’s policy release on Sept. 18, where the Fed anticipates lowering interest rates by 25 basis points

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!  

The week in Review

 

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

 

Friday: The Dow closed UP +297.01 points or +0.72%, the S&P closed UP +30.26 points or +0.54% while the Nasdaq closed UP +114.30 points or +0.65%

  • Small caps dominated, with the Russell 2000 up +2.5%. The small-cap index rebounded after last week’s -5.7% drop; it has gained +4.2% so far this week.
  • For the week, the Dow has advanced 2.6%, the S&P 500 rose 4% and the Nasdaq gained 5.9%.

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 posting gains with the Nasdaq trading near the session's highs.    

Friday’s advance/decline line at the open was positive with 28 incliners, 5 decliners and 2 flats; ending with a positive close at the close of 30 incliner, 3 decliners and 2 flats

  • Cell and gene therapy sector ascended to new heights

Metrics:  Friday, the IBB was up +1.55% and the XBI was up +2.17% while the VIX was down – 0.51 points or down -2.99% at 15.56

 

Thursday: The Dow closed UP +235.33 points or +0.58%, the S&P closed UP +41.63 points or +0.75% while the Nasdaq closed UP +174.15 points or +1%

  • Continuing to shake off a tough start to September and bought the dip in stocks in anticipation of a rate cut by the Fed next week

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 …
  • The latest Conference Board Consumer Confidence Survey shows Americans are still under pressure from high prices, as necessities like food are straining budgets and wallets. <Yahoo Finance>
  • Weekly jobless claims data released Thursday also reflected a marginal increase in the number of individuals filing for unemployment benefits, rising to 230,000 for the week ending Sept. 7.

Thursday’s advance/decline line at the open was negative with 22 incliners, 10 decliners and 3 flats; ending with a negative close at the close of 16 incliner, 17 decliners and 2 flats

  • Cell and gene therapy sector again seesawed in trading

Metrics:  Thursday, the IBB was down -0.04% and the XBI was up +0.16% while the VIX was down – 0.54 points or down -3.05% at 17.15

 

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

 

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

 

Monday: The Dow closed up +484.18 points or +1.20%, the S&P closed UP +62.63 points or +1.16% while the Nasdaq closed UP +193.77 points or +1.16%

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 jumped on Monday after investors bought the dip following worst week of the year, betting that a likely Fed rate cut later this month would bolster a slowing economy.
  • A short-term bounce after more than a bit of oversold last week
  • “Monday’s rally comes after last week’s serious losses in the first trading week of September, which is historically a tough month for equities after the August jobs report stoked fears of a slowing labor market.
  • The S&P 500 averages a 0.7% decline in September, the worst track record of any month, according to the Stock Trader’s Almanac.” <CNBC>

Monday’s advance/decline line at the open was positive with 24 incliners, 7 decliners and 4 flats; ending with a positive close at the close of 24 incliner, 8 decliners and 3 flats

Metrics: Monday, the IBB was up +1.25% and the XBI was up +1.44% while the VIX was down -2.87 points or down -12.82% at 19.51

 

RegMed Investors’ (RMi) pre-open: “the-tug-of war of sentiment and share pricing. While expectation remains an unspoken word, as consumer spending softening. Friday, the 13th – salt over the shoulder and no stepping on street cracks.” …  https://www.regmedinvestors.com/articles/13615

 

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

Q3/24

  • September – 4 positive and 5 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

 

Friday’s Closing Down (3 of 3):

  • Verve Therapeutics (VERV -$0.15),
  • Cellectis SA (CLLS -$0.15),
  • Mesoblast (MESO -$0.15 after Thursday’s +$0.19)

Flat (2):

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

Friday’s Closing Up (10 of 30):

  • Blueprint Medicine (BPMC +$4.80 after Thursday’s -$2.46 after Wednesday’s +$0.57 after Tuesday’s -$0.56),
  • Alnylam Pharmaceuticals (ALNY +$3.54 after Thursday’s -$0.18, Wednesday’s +$5.70, Tuesday’s +$3.05 and Monday’s +$6.38),
  • CRISPR Therapeutics (CRSP +$3.05 after Thursday’s +$0.45, Wednesday’s -$0.15, Tuesday’s +$0.72 and Monday’s +$0.25),
  • Beam Therapeutics (BEAM +$1.90 after Thursday’s +$0.28 and Wednesday’s +$0.47),
  • Vericel (VCEL +$1.60 after Thursday’s +$0.57),
  • Intellia Therapeutics (NTLA +$1.40 after Thursday’s +$0.43),
  • LENZ Therapeutics (LENZ +$1.21 after Thursday’s -$0.47, Wednesday’s -$2.82, Tuesday’s -$0.25 and Monday’s +$0.39),
  • Ionis Pharmaceuticals (IONS +$1.37 after Thursday’s -$1.51, Wednesday’s +$0.14, Tuesday’s -$5.94 and Monday’s +$1.44),
  • Ultragenyx Pharmaceuticals (RARE +$0.91 after Thursday’s +$1.50, Wednesday’s +$0.61, Tuesday’s -$0.08 and Monday’s +$0.56),
  • BioLife Solutions (BLFS +$0.84 after Thursday’s +$1.09, Wednesday’s -$0.52, Tuesday’s +$0.59 and Monday’s -$0.67),

 

The BOTTOM LINE: The 2nd week’s Friday rapid positive ascension followed Thursday’s positive after Wednesday’s sector gained altitude post Tuesday’s negative drop in the puddle after Monday’s closed positive

  • following the 1st short week of September ending with 4 negative closes - a bust!

“Investors are on guard for further bouts of volatility, particularly given the expectations surrounding the Fed meeting,” said Quincy Krosby, chief global strategist for LPL Financial. She noted that based on historical patterns, stocks typically have their roughest performance of the year during the second half of September.” <CNBC>

  • As, I have asked numerous sessions are we prepared for … a BIGGER dive in share pricing?

 

Been a busy week as I finished rebuilding the back porch over the past 5 days with total new porch stairs, aluminum winterized door and today a tongue and groove flooring into to winterize the porch now a bright windowed room. If anyone made money, it was Loews.

 

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: 

  • Friday: Blueprint Medicine (BPMC), Alnylam Pharmaceuticals (ALNY) and CRISPR Therapeutics (CRSP)
  • Thursday: Ultragenyx Pharmaceuticals (RARE), BioLife Solutions (BLFS) and Vericel (VCEL)
  • 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: 

  • Friday: Verve therapeutics (VERV), Cellectis SA (CLLS) and Mesoblast (MESO)
  • Thursday: Blueprint Medicine (BPMC), Ionis Pharmaceuticals (IONS) and Regenxbio (RGNX)
  • 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)

 

For the week: US stock indexes fared Friday, 9/13/2024 (AP)

  • The S&P 500 is up 217.60 points, or 4%.
  • The Dow is up 1,048.37 points, or 2.6%.
  • The Nasdaq is up 993.14 points, or 6%.
  • The Russell 2000 is up 91.08 points, or 4.4%.

For the year:

  • The S&P 500 is up 856.19 points, or 18%.
  • The Dow is up 3,704.24 points, or 9.8%.
  • The Nasdaq is up 2,672.62 points, or 17.8%.
  • The Russell 2000 is up 155.42 points, or 7.7%.

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.