A slow start to the week in which there are a lot of earnings calls but likely nothing to change the course of the sector. That has already been set by the large caps and we still need them to stay within striking distance of news highs if not break through them this week. It […]
August 3 Biotech Update
I will quickly finish up the week as there are a couple of interesting tidbits and the broader trading is more or less the same. There are some areas of strength but its relatively isolated but there is also not a ton of broad weakness either. Barring an awful day today the sector should end […]
August 2 Biotech Update
The sector continues to hold up in terms of price action relative to the broader market. If the market can at least stabilize, the sector has a good chance to eventually regain and perhaps break through recent highs. Obviously, all bets are off if the broader market collapses. My inclination is that the tech and […]
August 1 Biotech Update
The sector recovered a little yesterday from last week’s sell-off but ideally we would need to see the sector break into new highs. It seems highly likely that the sector tests the recent highs and the price action at that point is likely to be a strong signal of underlying strength. Given the fundamentals and […]
July 31 Biotech Update
I am still trying to catch up on all the earnings and happenings last week but I wanted to talk about two broad observations. In some ways, I benefited from not being able to watch the price action last week and only really looked at the news. In general, the price action does not reflect […]
July 20 Biotech Update
Not a ton of news to end the week as the sector continues to drift around. This is not completely surprising given the earnings coming next week. I will be out of town on vacation all of next week, so there will be no updates. I will catch up the week after next but on […]
July 19 Biotech Update
The sector has hit a rough patch as we get into earnings season. The market itself has not been stellar, so I would not read this as some early take on the big set of earnings next week. In fact, large biotech has tended to do relatively well on these sell offs so despite the […]
July 17 Biotech Update
The lack of news continues as well as a generally weak market. While it certainly was not strong yesterday (and to start today), it feels more like indifference than a strong push by the bears. This does not mean it could not morph into something more meaningful but at this point it seems more like […]
July 16 Biotech Update
Not a lot of news this morning so I will keep it quick. We will have some earnings but large pharma tends to not be a leading indicator for biotech earnings but we will certainly watch to see if there is anything meaningful in the earnings or how the respective stocks react to the earnings. […]
July 13 Biotech Update
While we are talking about small numbers and small difference, I would argue that it looks like large caps are finally starting to show some relative strength to SMID. I would argue that this is a better case to build a new breakout than one led by SMID as those moves are likely more driven […]
July 12 Biotech Update
I think we are entering a lull in the sector as we are approaching earnings seasons. In general, this tends to be a better season than the first but that also means expectations are a little higher. A good earning season would see no major misses and at least a couple beat and raises from […]
July 11 Biotech Update
Apparently my effect is now hitting the broader markets as they are pretty weak today. It could be more trade tensions with the Trump administration amping up the trade war rhetoric with China but I would not discount my impact. That being said I would not be looking for the sector to trade green in […]
July 10 Biotech Update
So I stay away and the sector does well and now that I am back, let us see how it does. I apologize for any weakness that my return causes but the sector has been demonstrating some decent strength in the past days. On the positive side, it seems related to positive fundamental news and […]
July 2 Biotech Update
Apparently I am the problem with the sector. I miss one day and the sector moves higher and now that I am back it is back to going lower. I would argue that today seems to be driven more by the broader market but it is still going down. On the positive, I will be […]
June 28 Biotech Update
I tried to hold out as much hope for the sector as possible but the selling has been non-stop since the false breakout. The first bit of selling made sense against a weaker market and a natural retest of the breakout but it has not stopped and one could possible argue that it accelerated. It […]
June 27 Biotech Update
We still might be able to salvage a bullish view but it is getting pretty difficult. Clearly the breakout did not occur but we are still in higher highs and higher lows position from the April lows but we cannot have another big sell off and maintain that view. On the positive side, we have […]
June 26 Biotech Update
Yesterday was a brutal day and the odds now favor it being a false breakout of the sector. I would not say all is lost as if we can bounce soon, we might be setting up a higher low but there is not a lot of room for error in the sector. 1. AKAO received […]
June 25 Biotech Update
This will be an interesting day to see if the breakout will be confirmed as real or confirmed as false. We are back testing the previous levels of resistance and without a bounce from these levels, then I doubt the sector can continue to move higher. The news this morning is not helping as there […]
June 21 Biotech Update
Sector strength continued and is clearly outperforming the broader market. While we have seen this happen for a couple days before, this feels more like a real breakout. Ideally, we would need to pullback and test the previous resistance and have it act as support to confirm the move but I suspect it would hold. […]
June 20 Biotech Update
You would think replacing a computer would be an easy job, it apparently requires different layers of people and so not everyone was on campus yesterday. So at some point in the future I have to look forward to the computer replacement process to eat half of my day. In any case, at least the […]
