The past couple days have not been great but we still remain in the uptrend and that has to be the assumption until that trend is broken. We are probably at an area where support should happen and a bounce develop. If we continue downward and do not get any real support, it would raise […]
October 19th Biotech Update
I waited a little to write today hoping that something would pop in the feed that was interesting to talk about but nothing is happening to start the week. As boring as that could be it is useful in that it provides a pretty clean look at sector sentiment as there is nothing as to […]
October 16th Biotech (and MLP) Update
Looks like we are going to have a decent end to the week. I am still not sure if the sector is going to continue to push this higher high even higher or we get a pullback to establish a new higher low. It certainly looks like the sector wants to move at least nominally […]
October 15th Biotech (and MLP) Update
Not much to add as we gear up for earnings season and the sector basically following the broader market in its moves. It looks like we are switching from setting the new higher high level to establishing the higher low level. In other words, we are likely in the part of the uptrend where the […]
October 14th Biotech Update
Not much is actually happening in terms of news and yet the sector continues to move higher. We are getting multiple days of green in a row and breaking out into new highs. I do not think there is anything fundamental driving this move and it seems to simply be momentum and technical. Clearly we […]
October 12 Biotech Update
We are not starting the week with new M&A but we are starting the week with strong momentum both with the sector and the broader market. Of course, very strong broader markets have not necessarily been great in recent weeks for the sector but there is certainly a chance that we break to new highs. […]
October 8th Biotech Update
We are setting a trend higher in the sector with higher highs and higher lows. What is actually interesting is that we are getting this new trend higher and have not had back to back green days since the middle of September. We have alternated red and green since mid-September and despite that back and […]
October 7th Biotech Update
Generally some good price action in the market and sector this week. There was a slight sell off when stimulus talks were called off but the market now seems to have forgotten that news. We are probably a month or so of way before the lack of new stimulus shows up in the economic data, […]
October 5th Biotech Update
A good start to the week as I think the broader markets are having a relief rally given that Trump appears on the road to recovery even if his disease was more severe than presented. Obviously the next couple days remain critical, there does not seem to be an imminent threat of significant worsening so […]
October 2nd Biotech Update
I have had a busy morning but wanted to get some note out today albeit it short as there is not a lot of sector specific news. That being said there is quite important news that very likely will have impacts on the sector and the broader market. I think the market is still trying […]
October 1st Biotech Update
The sector has been a grind this week in that it appears unable to move higher but also is not breaking down at all. Every rally appears to be sold or unable to get any real traction (the open today is a perfect example in that it looks like we could have a good day […]
September 30th Biotech Update
Given the importance of the election in terms of the market, one would have expected that the debate last night would have an impact on the market. I have no idea how to interpret what happened last night in terms of who won or what they would actually do if elected. The markets last night […]
September 28th Biotech Update
While there is nothing major happening in the sector, the broader market appears to be recovering and the sector is probably going to be along for the ride. If we can get enough strength this week to push the XBI above the recent highs (around $116.30) then we can start to take more serious the […]
September 24th Biotech Update
We are not quite in trouble with the sector despite the recent sell off and pain. Obviously the broader market is not helping but we have not broken below recent lows and still can reverse (needs to be soon) higher and make a higher high to start a new trend. Of course, nothing is guaranteed […]
September 23 Biotech Update
We could be setting ourselves up for moving to a higher high with the reversal yesterday. While it certainly seems possible, this would also be the potential start of a new trend so I would be cautious in putting too much stock in it until we see some real confirmation. In this case it would […]
September 21 Biotech Update
A weak start to the week and it is not immediately clear the cause. The sector certainly had a decent run last week and a little consolidative pullback is not crazy. The broader markets were weaker last week and so this could be a continuation of that move. I actually sort of like this setup […]
September 17th Biotech Update
The sector has been strong and today is the first real test of this move, although when I say test it is more to see how much stronger it can be. Most of the days this week opened strong and that strength continued but today we open red and so we get to see if […]
September 16 Biotech Update
The early week deals have set a nice rally in the sector which was expected. The positive is that we not only broke above the last lower high but also closed above it. As such, I think it is clear that we have broken the down trend and so the question now is whether we […]
September 14th Biotech Update
We are back baby! This is the M&A that the sector has been wanting. If this cannot break the sector out of the downtrend and push it back to highs (if not higher) then not much else could. The ideal scenario would be a push above the recent lower high today but we were pretty […]
September 10 Biotech Update
The sector seems to be doing well as it recovers with the broader market. One has to remain a little cautious as we seem to be in a downtrend with lower highs and lower lows and while this strength looks good, we cannot become too optimistic until we break the recent trend. Hopefully this is […]
