The sector seems to be struggling a little but it would not be stunning to see some underperformance and consolidation after the recent run. We continue to get earnings headlines but the vast majority of sector moving calls and earnings are passed. 1. EPZM reported earnings and there is nothing new in it, so it […]
August 5 Biotech Update
I was not going to write today but snuck into office with my kids in tow for a quick note on BMY. 1. This was a major surprise and critically important for BMY. ISI wrote that they believed the first line NSCLC market was $7B-$8B of the $12B 2021 opdivo estimates. That is pure speculation […]
August 4 Biotech Update
Today is actually an interesting day as we have had a lot of small cap reports that offered nothing really new except continued progress that was well known and should have already been incorporated into expectations. For the most part, these stocks are higher, which I think signals that this run continues to have some […]
August 3 Biotech Update
It is more of the same but we had a nice late day rumor yesterday that triggered a reversal higher. Outside of that rumor not much in the way of news. While these rumors tend to be a nice source of intraday moves, these are generally not sustainable as even if they are true, the […]
August 2 Biotech Update
Not surprisingly we are having a consolidation/pullback. The sector has been on a tear and nothing goes straight higher. While the past 12 months or so has trained us to look worriedly at each pullback, this has the potential to be different. We appeared to be breaking out of a range and if the sector […]
August 1 Biotech Update
Biotech is hot again. I know I may have just jinxed us but the sector continues to power higher even as the broader market spins its wheels. Obviously there will be pauses and consolidations but I suspect that the money flow that hurt us for so long is reversing and is now going to start […]
July 29 Biotech Update
The news is slowing down a little this week but the earnings continue for the large caps. So far as a group the earnings look good indicating solid fundamentals with the companies. The stocks have been reacting well and the sector has been moving higher and outperforming. This move higher raises the bar for the […]
July 28 Biotech Update
It is a mixed bag today in terms of stock reactions but the actual numbers continue to be good. I am not exactly sure why some stocks are reacting better than others but I will take a stab at it. In any case, it is hard to argue that the fundamentals of the sector do […]
July 27 Biotech Update
We are in the midst of a busy week but we have a slight pause in the news but will pick up soon enough. The sector held up amazingly well considering the GILD and CELG news, which is certainly positive. It looks like positive news can still be rewarded and negative news is not automatically […]
July 26 Biotech Update
We got a double barrel of bad news after the close last night but I must say the overall sector reaction is good. I have said this before but it bears repeating. If this had happened a couple months ago the sector would be down 5%+ and stay down. Today we are green. It seems […]
July 25 Biotech Update
It is a slow start to what will end up being a very busy week of large cap earnings. We have a large cap reporting every day and it will be started with GILD after the bell. We have had good price action so far that has correlated with a strong set of earnings. Of […]
July 22 Biotech Update
Not a lot of additional news today. The sector continues to modestly outperform the broad market, which is good. The XBI crossed over the 200 day moving average (and actually closed above it) and the longer it can remain there the better. It would be great to see that moving average tested and hold as […]
July 21 Biotech Update
Finally we get some news for the sector and it is good news. Yesterday was a good day and the news so far today only builds on that move. Perhaps this is going to be enough to break the sector out of its range but that remains to be seen. At the very least it […]
July 20 Biotech Update
So the sector might actually be outperforming the market today but it is early. What is nice is that the positive news continues to be rewarded, which means our holdings only need to follow through on their catalysts to get a nice return. This is very different than earlier in the year where positive news […]
July 19 Biotech Update
More of the same yesterday and still not a ton of news for this morning. The market is overbought even if the sector is still not anywhere near over bought or all-time highs. That makes one worry a little about what happens to the sector when the market inevitably works off the overbought condition but […]
July 18 Biotech Update
Looking around there is really not a ton of sector news. The market is flat which could be considered a win given the Turkey coup attempt Friday but in terms of sector moving data or events, there is really nothing going on. It is a little interesting that we have had a dearth of mergers […]
July 15 Biotech Update
There is nothing new in the market or the sector, so I suspect we see more of the same. The sector continues to track the broader market but is clearly the weaker of the two. Until we get news we are going to be stuck in this pattern but on the bright side this likely […]
July 14 Biotech Update
The market continues to ramp higher but about halfway through yesterday the bottom fell out of the biotech sector and it has been struggling ever since despite the strength in the broader markets. It is not immediately clear what was the cause (seems temporally to correlate with Andrew Left noting that he is short VRX […]
July 13 Biotech Update
The market continued its strength (even if we dipped red for a second today). If you remember in the lead up to the BREXT vote the cash balance sheets for institutional investors were very high. With the market running after BREXIT you are getting buying panics as the buying dips have not appeared. In addition, […]
July 12 Biotech Update
The market and sector continue to do well. At least in terms of the macro market, we are back in the pattern where the most likely path of a market making new highs is to make marginal new highs. Obviously the biotech sector is not in that pattern even if we are moving with the […]
