The sector is in a tenuous position and yesterday did not help. In some ways it looked like we broke down below the support but given how we climbed back and got a lot of the losses back saved a little. If we can end strong and continue the late day momentum, then yesterday could […]
July 6th Biotech Update
We are bouncing around support and while it is good that it holds, it is dangerous for the sector. If we wanted to be positive, then we are grinding out some volume adding more strength to this support and providing a nice base from which to move higher. Given that we have all experienced the […]
July 5th Biotech Update
I suspect we are going to have a slow week even though the holiday is over. The summer is generally going to be slow as people are out of office and with a holiday landing on a Tuesday, my hunch is that this week is going to be slow for even the summer. I do […]
July 3rd Biotech Update
We at least ended the week well and while there is not a long weekend, we have the day off tomorrow for the 4th of July. I think it is going to be a slow news week and nothing too exciting in the markets. That does not mean that we cannot have a meaningful week, […]
June 27th Biotech Update
This is it. We either bounce from these levels or we are setup for a much larger selloff as we set a lower low. I strongly suspect that we rally as we have basically gone straight down. Even if this level ultimately fails in the next week or so, I think the selling has been […]
June 26th Biotech Update
We are running out of chances. We desperately need to find a higher low and cannot fall below $82.5 area as that would look like a lower low. On the positive, we are looking oversold after last week and so I think it would be difficult to continue the selloff and break below that level […]
June 22nd Biotech Update
Incremental. That would be the word I use to describe the action in the sector outside of the big down day earlier in the week. I do not read this as necessarily bad as there has been ample opportunity to accelerate the move lower given we are hanging out at these levels but that follow […]
June 21st Biotech Update
The trading did not start well but it ended up fine. That is quite important. We are at an area that should act as support (at least somewhere around these levels) and so not falling any further is not more important that moving higher, but it certainly is up there. It was good that we […]
June 20th Biotech Update
Not the best way to end a week but we are at what could be a level of support and I talked about this possibility. It was not the less stressful version of setting up a bullish trend but heading down to these current levels and using it as a support to a move to […]
June 16th Biotech Update
We are still close and trying. We did not make a run to the upper level and pull back to the $90 but did make a little move lower to the $88 level. It looks like it is support at this point and it reset the chart, which might have setup a move above $90. […]
June 14th Biotech Update
We are so close. We did break above the $90 level but I think the ideal scenario is to get some distance (say a little bit more move to the $93 level) and then a pullback to the $90 level which holds as support. I think a pullback from here to the $88 level (where […]
June 12th Biotech Update
We are trying to break out. The sector made a run at the $90 level yesterday but was unable to break out. Perhaps the continued cooling of the CPI numbers will be a macro push that the sector needed. With inflation looking to have peaked and likely meaning the end of the Fed hike cycle, […]
June 12th Biotech Update
There is a lot to catch up on the past week and rather than go through everything quickly in one day, I sort of want to take my time and review what I thought was most interesting. I think the sector is not necessarily in a bad spot and if we could find a way […]
May 31st Biotech Update
Yesterday was not great or at least it did not feel great. It looked as if we would have a nice little bounce but ended up red again. Stepping back, however, we are not in an awful position as long as we do not break below the recent lows. There seems to be some support […]
May 30th Biotech Update
Last week was disappointing to say the least. I was worried about the macro and the impact on the sector but it ended up not mattering. The market actually did pretty well but the sector was weak both in an absolute sense and a relative sense. That is always a difficult situation as it is […]
May 25th Biotech Update
The sector is in an odd position. We sort of made a higher high when we got to the $90 level, which would generally be good but we ended that day way off the highs and then followed up with a weak day. Generally, I would look at that as a failed breakout and a […]
May 23rd Biotech Update
A nice little rally yesterday and hopefully we can continue that momentum. Obviously the ideal scenario is that the sector can break out and go to a higher high after having set a higher low. To be fair, we have been in this situation before and even had a mini upward trend established only to […]
May 22nd Biotech Update
Note a lot of news to start the week but it does not mean that we are not setup for a potential good week. Last week was not great but if you take a step back and look at the bigger picture, we are not in a bad spot. A positive week could setup a […]
May 18th Biotech Update
The FTC news with AMGN and HZNP was an awful way to start the week but in all honesty, the sector seems to have held up. The green day yesterday could be setting up a higher low, which assumes we make a higher high. I would not say the all clear has been signaled but […]
May 16th Biotech Update
The sector absolutely cannot catch a break. Everything was looking good and solid and now the proverbial rug has been pulled out. There is no recovering today. It will be red but the broader move is not done (at least it does not have to be). I think as long as this pullback stays above […]
