I missed a day but not much happened. The sector continues to do well and it seems to be slowly turning sentiment around. The one negative (or perhaps positive) is that the ISI traders noted that there is still not buying demand and the move seems to be driven by a lack of sellers and […]
May 31 Biotech Update
So we got a little takeover Tuesday but not the mega deals that would have been transformative. I think we are at the point that we likely needed a deal after the long weekend to keep the momentum going. This is not to say we need deals every week but I suspect it would have […]
May 27 Biotech Update
Yesterday was not a great day but after the run having a treading water sort of trading is not the worst outcome. At the worst, we were trading in line with the market and the key will be what we do after the recent move has been digested. The trend has been higher, so the […]
May 26 Biotech Update
Yesterday was more of the same and that is actually good for one of the first times this year. The sector continues higher and modestly outperformer the broader markets. The one negative was that ISI noted that there has been a lack of real money interest. In other words, long term institutional money has not […]
May 25 Biotech Update
The market continues higher and the sector with it. We seem to be moving away from the previous lows with broader participation with SMID and large caps. This market continues to be hated and I suspect people are still underinvested in healthcare. This all makes me marginally more bullish in the near term even though […]
May 24 Biotech Update
I do not think anything dramatic happened when I was away. The sector seems to be holding the support which is most important. In addition, one could perhaps argue that the outperformance has continued to a modest extent. All of that being said volumes are low and will likely go lower as we enter the […]
May 19 Biotech Update
The sector did well the other day especially given the weakness in the broader markets. We have, however, seen this before and last time the sector grossly underperformed once the broader markets recovered. So while it is good to see the relative strength and hopefully it continues, it also needs to last more than a […]
May 18 Biotech Update
The sector remains in a precarious position, which is nothing new. ISI had a call yesterday with its technician and the overwhelming view on most of the stocks was that they are at a decision point- the short term chart does not look great but they are at long term support. He tended to lean […]
May 16 Biotech Update
We got some decent news flow to start the week both positive and negative. Who knows how that will balance out in terms of the sector general performance but this should be a week driven by news related moves with ASCO abstracts and the ABBV IPR decision still on deck. 1. The biggest data news […]
May 13 Biotech Update
I feel like we have been here before with the sector flirting with a major breakdown triggering another leg lower. We have yet to get that break but we are in another decision zone so the trading the next couple days will be quite telling. The selling is once again being led by spec pharma […]
May 12 Biotech Update
The sector did not do well yesterday but it is hard to call it underperformance given the broader markets. Clearly there does not seem to be any real interest to buy biotech even if there is no interest to sell it aggressively. Given the year we have had to date, I do not want to […]
May 11 Biotech Update
Yesterday the sector was a little weak but that is neither surprising nor a killer given the strength we saw Monday. That being said we cannot see continued under-performance and have a positive view in the near term. I am starting to think of the performance of the sector as less strong or weak and […]
May 9 Biotech Update
We have some news to start that week that all else being equal would be positive catalysts. The price action today off of the news should be a good tell as to whether sentiment has shifted a little in the sector but I would wait to see where we end the day not where we […]
May 6 Biotech Update
So more of the same yesterday and we are likely heading to a bounce in the sector as the recent selling seems to have been relentless. The bounce might not happen today but it is likely in the near term. The interesting part of the bounce is not whether it happens (it will) but whether […]
May 5 Biotech Update
We saw more of the same selling yesterday. It was across the market but it certainly felt like the sector led to the downside and failed to bounce when the market came back a little. Today is off to a better start but at this point I am not sure anyone thinks it will stick […]
May the 4th Be With You Biotech Update
It has certainly not been a good start to the week for the sector or really the market, although it seems like the sector is underperforming. As frustrating as it is after all of the under-performance, we cannot miss the forest for the trees and note that we are still not close to the recent […]
May 2 Biotech Update
It was not a great end of the week for the sector. Trading has not been good and earnings were fine but not exciting. As much as the sector has bounced from its recent lows, it still does not feel like sentiment has changed dramatically. It as an odd dynamic that I will talk about […]
April 28 Biotech Update
We have a little bit of news this morning. There is no way I can cover it all especially having a bunch of conference calls to listen to as well. I will focus on the big picture and dig down into a couple of the events. 1. We have been waiting for M&A and it […]
April 27 Biotech Update
This week seems to have started like last week. I think it was actually last Tuesday that the sector suddenly took a dive on no real news and yesterday was certainly not a good day. It remains to be seen if this weakness will continue as we are entering into earnings that could help the […]
April 25 Biotech Update
There is not a lot of news to start the week but this will be a bust week of news, so I will keep this short as we wait for the real news flow. 1. The biggest news so far is that the PRGO CEO is being replaced with the implication that old CEO is […]
