A strong start to the week, which is good as there is not a ton of news to be driving the move. We did end the week with some good news but it is a relatively quiet start and the move higher bodes well. I often like to see how the sector trades without news […]
May 12th Biotech Update
While I thought we could have made a little push higher before the chart resets itself, it looks like we are in the midst of a pullback. I think anything into the $83 range would be reasonable in the context of a bull market pullback. Anything that moves lower than that would raise some questions […]
May 11th Biotech Update
Can we make a little run to the $90 level on the XBI? We got some nice momentum and that seems a reasonable spot for a pause that refreshes but it has been a pretty strong move higher that could pause at any point. May has been a very strong month and we are close […]
May 9th Biotech Update
Overall the market seems to be digesting the recent moves, which is fine. A day or two sitting around these levels before a push higher is probably better for the longer run potential of the next move. As long as we keep making higher highs and higher lows, it remains a positive environment for the […]
May 8th Biotech Update
We are in a little cycle (it seems) with a bid on Friday in the hopes of a merger Monday and then a little disappointment if there are not any deals. To be fair there has been a good number of Mondays with deals, which is probably not sustainable and perhaps there are other reasons […]
May 5th Biotech Update
I think this week has been pretty good for the sector. Ideally we can keep it going with a nice strong close. Given the number of merger Mondays we have had recently, there should be an underling bid into the weekend but who knows what the macro is going to do to the market with […]
May the 4th Biotech Update Be With You
We seem to be finally breaking out of the range especially if the broader market can at least hold up. The news continues to be good for the sector and that seems to be bring more investors and interest. As long as these new investors can make money there should be a nice momentum that […]
May 2nd Biotech Update
Certainly, a good start to the week. We basically got to the upper end of a range around $83 and I would not be surprised to see that act as a little bit of resistance, although if we are in a bull market it should not last too long. I would like to see us […]
May 1st Biotech Update
After taking a one week break from a merger Monday we are back at it. The lack of M&A was an explanation in previous years for the sector underperformance but that cannot be said this year as it has accelerated. Yes, there could be other reasons for underperformance but bull markets climb walls of worry […]
April 28th Biotech Update
It is more than a little disheartening to see a strong rally that leaves out the sector. If one wants to try and look at the bright side it saved us from breaking down and we seem to be bouncing off of a support level. Of course, it looks pretty meaningless if we cannot rally […]
April 27th Biotech Update
Are we breaking down? It has certainly not been a good couple of days but even though we are under the $80 level on the XBI, it looks like we are still at the bottom of a range. This is certainly a precarious position and not one where I think we want to linger. There […]
April 25th Biotech Update
A slow start to earnings with nothing really pushing the sector. I think as we move through the large cap section of the earnings the questions will revolve around M&A as it is hard to see a large cap that does not need some additional filling out of the pipeline with some more than others. […]
April 24th Biotech Update
A slow start to the week after a couple of bust Mondays with deals. We are getting into earnings seasons and so it is not surprising that we slow as companies get ready to report. I do not think there is anything that will be very compelling or thesis changing in earning and I suspect […]
April 20th Biotech Update
This week has been pretty tame in the sense that we have not really built on the move higher but have not broken below that $80 level that I think is key to hold. I think we are all a little impatient with the sector given its recent performance but grinding right above the $80 […]
April 18th Biotech Update
Would you believe it if I said another day and another buyout with a large premium? I think the lack of M&A had been blamed for some of the previous years of underperforming for the sector and I believe that was a fair point. That is certainly not the case this year. While the sector […]
April 17th Biotech Update
Last week I wanted to see a nice move above the $80 level on the XBI as a way to perhaps setup a little bull run. It failed but today is certainly different. The move today was sort of what I was looking for last week and we need to stay above the $80 level. […]
April 14th Biotech Update
A sleepy week sort of flipped in one day with both drama and action. We have pushed right up to the $80 level in the XBI which could act as some resistance but it will be interesting to see if the strength of yesterday can push through. From the bullish perspective, the ideal scenario would […]
April 12th Biotech Update
Well, it does look like we are still in this mini range. The market could be in rally mode today with the CPI coming in cooler than expected. While I am not convinced that the CPI looks that much cooler than expected (0.1% MoM versus 0.2% expectations), it seems to be enough for some significant […]
April 10th Biotech Update
Treading water? While it might not seem like it, the sector could be bouncing around support levels and perhaps even setting up a new range between $75 and $78. If that looks like a pretty tight range to you, I think you are right and the upper end might be closer to $80 and the […]
April 4th Biotech Update
Not a ton of news so far this week and so it seems like the sector is trading on sentiment and technical. I think we have more or less made a round trip to where we started the week. I still think there is room to eventually move to the moving averages but it does […]