The trend is your friend and while I expected a news to slow we got an unanticipated surprise. Positive news continues to hit the sector and the trend continues higher. I will never call the end of the trend until it confirmed but we have had a great move and macro has been pretty supportive […]
November 25th Biotech Update
If it were not for some M&A this would be a quiet start to the week. I suspect that in the end it will be pretty low on fundamental news given the holiday week but we are off to a good start. This should provide even more support to the trend and the broken record […]
November 20th Biotech Update
The trend is our friend and it seems like the XBI wants to get to $90, although any price between now and then could see the pause. The worry would not be if we pause and pullback but to make sure that the pullback puts in a higher low. I am going to be a […]
November 19th Biotech Update
The leak is finally fixed. It only took six hours yesterday and an inadvertent flooding of the laundry room but it is done. Now I need to get the dry wall fixed before being completely done but some progress. Speaking of progress, the sector continues within its trend. It has been grinding higher marking higher […]
Taking a BET on CNST
Constellation Pharmaceuticals is focused on the development of cancer therapeutics by targeting the epigenetic pathway. It has EZH2 and BET inhibitors in mid-stage clinical studies. Excitement in the stock is driven by the BET inhibitor CPI-0610. There is substantial interest in this class of compounds. While small biotechs often lead the way with novel targets, […]
November 13 Biotech Update
All three SMIDs this week had positive news although only AMRN really took off on it. Of course, AMRN had the smallest positive move into the week and probably had the highest amount of doubts over the catalyst, so it sort of makes sense. I want to spend today going back over the other two […]
November 12th Biotech Update
I know the actual AdCom is in a couple of days but the briefing docs release today gave us the final move for this weekly trifecta. This could also be a good day for the sector if we can break above the recent highs, which should trigger another leg higher in the trend. The fundamentals […]
November 11 Biotech Update
This is not necessarily a big week for the sector (the trend still seems in intact) but certainly some big SMID catalyst for stocks that I follow. In fact, there will be a trifecta of news (two of which already happened) that could be meaningful. So let us dive into what had happened. 1. PIRS […]
November 6 Biotech Update
We remain in what seems like the trend. Day three of the pullbacks tends to be when we restart the move higher but yesterday ended marginally green instead of red so it is not completely predictable. In any case, we are getting close to what should be the higher low and expect a reversal today […]
November 5th Biotech Update
Let us see if the trend is our friend. We hit what should be some resistance and have stalled. Previously, this led to a day or two of a shallow pullback followed by a push to new highs. We are in the second day of a potential pullback so we should be setting up for […]
November 4 Biotech Update
Of course we get some meaningful news when I am unable to write but at least it was good news. And of course the sector does well when I am not here (but at least it did well). Looking at the chart there really seems like a nice little uptrend has developed with clear higher […]
October 30 Biotech Update
The price action has not been great the past couple of days despite continued positive fundamentals. This could simply be a consolidation of the recent move higher and setting up a higher low for the sector. I would lean towards the sector setting up a higher low at this point as the macro is fine […]
October 29 Biotech Update
There is nothing that should stop the sector from running higher. Fundamentals look good and it has perhaps the best set of earnings among all sector this quarter. Of course, what it should do and what it does do not always correlate. Sentiment is still negative and could hold it down but fundamentals look good. […]
October 22 Biotech Update
I believe it is safe to say that we have some news today. I strongly suspect the news will be viewed as positive and should drive the sector higher. Let us dive into this news. Aducanumab work! Sort of. Perhaps. I cannot think of a drug that failed futility only to come back later and […]
October 16 Biotech Update
Some good news today and most was unexpected. Some needs more discussion than other but I want to touch on all of them. Ideally this will be the catalysts needed to continue the move higher especially given the lack of a macro catalyst. ALXN is buying ACHN for just under $1B. This requires the least […]
October 9th Biotech Update
We are potentially setting up well for the sector. Yesterday was a down day but was that the pullback to consolidate the bounce and start a trend higher? Maybe. We need to get over recent highs around $78 on the XBI and while we do not need that today we probably need to at least […]
October 8 Biotech Update
This is going to be an interesting couple of days for the sector. This is either the pullback to consolidate before another leg higher or the end of the dead cat bounce. Sentiment in the sector is awful. Sell side notes are talking about conversations with money managers with most simply seeing the sector as […]
October 7 Biotech Update
Not a lot of news to start the week. Some interesting odds and ends but nothing to really be a sector mover, so I suspect it continues with the trend that it ended last week. We had a nice little bounce late last week and it could become more meaningful if we get a continuation […]
October 2 Biotech Update
Today seems like a reversal day. The sector has been down for 11 straight trading sessions and is at a support level. I would have thought that $74 on the XBI would have been stronger support but it busted right through even after the brutal selling. I am not huge into short term trading but […]
October 1 Biotech Update
We are probably due for a bounce in the sector as it has almost been straight down for a little bit. I think the $84 level on the XBI looks to be some support but that is still a couple points lower. Do we get to those levels before a bounce or has the selling […]
