Not the best start to the week but like I said I think we need a positive catalyst (like M&A) to really move above the resistance. That being said this is a pretty bad day with broad weakness. I think what we are looking for now is setting a higher low and we are in […]
September 20th Biotech Update
Well, we got our rate cut but the sector did not take off. Is that a reason to worry? Not really. Remember that expectations were for a cut and even 1 50 basis point cut and so most of this was probably already priced into the sector and stocks. I think there would have been […]
September 17th Biotech Update
The sector is doing well and I think we are setting up for another strong Q4 (which seems a lot like last year, where got a nice strong move higher to end the year). I think the interest rates are going to now be a tailwind but more importantly, I think we are going to […]
September 11th Biotech Update
The sector seems to be recovering, which is good. I do sort of wonder if we end up rangebound until the election. That being said, neither candidate is particularly positive towards the sector. There is the assumption that Republicans will be more pro-business but the populist nature of Trump leads him to be closer to […]
September 9th Biotech Update
September started off pretty weak but this has always been a difficult month for the markets. I do not really see this as a change in the market and more as a consolidation. Of course, there is only so much the market can decline before it becomes something more but at this point, I would […]
August 28th Biotech Update
Moving is a pain, but unpacking is agony. LOL. The market and sector, however, look a lot better than my house. While there has been a little pullback, I really see it more as the pullback that refreshes the move higher as opposed to a sign that something is wrong in the sector. Obviously, it […]
August 22nd Biotech Update
I suspected that we would have paused this week but the sector has had a nice continuation this week despite hitting what I thought would have been natural resistance. That is a nice sign of strength but I still think the sector is a little extended in the immediate term and likely needs a to […]
August 20th Biotech Update
Well, I did not think my return would be celebrated so much by the sector. All kidding aside, it was quite a nice day yesterday and I am a little surprised that we did not have more resistance at the $98 levels. We did spend a couple of days bouncing against those levels but I […]
August 19th Biotech Update
I am moved and have a setup where I can do some work. Still have a lot of unpacking and work to do but time to look back at the market and see what has been happening. It looks like we have climbed up to some resistance. We appear to have had a nice little […]
August 7th Biotech Update
I sort of wonder if we have tested support with the recent selling and now are going to move higher. While the selling was related to fears over the economy, I also read that a large portion could be related to the surprise rate high in Japan that setoff a large unwinding of the Japanese […]
August 6th Biotech Update
Well, it looks like there is a fine line between the economy slowing enough to cause rates to go down and the economy slowing so much that the market has a growth panic and has a massive sell off. Obviously, nothing does well in a risk off panic selling and while the sector has been […]
August 1st Biotech Update
I thought we had a chance yesterday to really challenge the highs for the sector but we ended up pulling back. It seems like we are a lot closer to rate cuts than we have been in a long while. I do not think that anyone would be surprised to see a rate cut in […]
July 31st Biotech Update
I am in the middle of moving cross country and so will be hit and miss for the next month or so. I am back for a little bit but also have to catch up on earnings and news. I will try and take it in bits and pieces as opposed to doing it all […]
July 18th Biotech Update
The sector has been red hot. It is due for a pause and a test of the breakout. Perhaps this is where we get that healthy pause and refresh or perhaps we have a little more juice left in this move. Yesterday was interesting with a pretty strong move in the big pharma names. I […]
July 15th Biotech Update
A little bit of strength to start the week. I still think we need to pause this run higher and back test support. We clearly seem to be breaking out of a range and to confirm that break I would like to see us test the upper end of that range as support. I think […]
July 12th Biotech Update
It has been a really good week. If you look at the chart, one could make a compelling case that we are breaking out of that range. I would not have predicted this was the week in which that would happen but it looks good. If I were writing the ideal script we would extend […]
July 9th Biotech Update
Yesterday ended up being a decent day. Not the greatest but certainly a nice little start to the week. Ideally, we get some follow through today and into the middle of the week. It might be difficult to get that sort of momentum without more news but it would certainly be some good strength if […]
July 8th Biotech Update
It is going to be an interesting week. We have been pretty slow on the news front and last week was a holiday week with the expected dry up in volume. I get that it is still summer, and trading is going to remain slow but coming off of a holiday we get some interesting […]
July 2nd Biotech Update
It was a good start to yesterday morning but we got weaker as the day went on. I still think the sector is not in a bad position but I do not like to see the strength in the morning and weakness as the day went on. It is only one day and the volume […]
June 28th Biotech Update
Not a bad week nor a great week for the sector. It would have been nice to see the sector set a new high but we did get a nice bounce from support. The XBI is going to be interesting to follow going forward because they have changed the composition to have more large caps. […]
