This morning was just a little bit busy. The market was neutral, which gives us a nice clean way to see how the biotechs are reacting to news. In general, it appears that good news is still moving stocks higher, although some of the moves were more muted than you would expect. In any case, […]
November 14 Biotech Update
The markets are fine this morning but biotech is weak and seems to be led lower by GILD and other large caps. As long as GILD is weak it is going to be difficult for the sector to lead and this could eventually spill over into the broader markets. We have quickly moved from extremes […]
November 13 Biotech Update
A decent start to the market with biotech generally participating. GILD seems to remain the odd stock and continues to struggle at these levels for reasons that I will follow up on tomorrow. Sentiment seems to be changing in GILD and we certainly need to keep an eye on it even if you do not […]
November 12 Biotech Update
A weaker start to the day today but I still see this as the market treading water as opposed to a new trend. I certainly would keep an eye on the action of the small caps as they have been an early warning signal and they too seem to be treading water with some winners […]
November 10 Biotech Update
News continues to roll in and the market is providing a relatively neutral backdrop, which gives us a good sense of what the price action means. In other words, the price action of biotech stocks after news seems to be a clear signal of market reaction and is not being cloudy by macro effects. This […]
November 7 Biotech Update
To say it has been a busy day is an understatement. Rather than try and cover everything that is happening, I would prefer to focus on a couple items a day. I would also note that the sector seems weakening which is probably an early signal for the broader market but it is difficult to […]
November 6 Biotech Update- ASH Abstract Galore
So we have a massive dump of information today that I want to touch on but it is not possible to cover everything. I will do a series of quick hits to cover as much as I can and get it out as early as possible. I will then spend the next week or so […]
ABBV Survey Results [Free Content]
Earlier today on twitter there was a robust debate about the weakness seen in GILD and how this is related to fears on the upcoming competition from ABBV/ENTA. It seemed clear that there was a debate over the ultimate discount that ABBV was going to offer when compared to the GILD regime. While everyone had […]
November 5 Biotech Update
The markets seem to be in consolidation mode or to put it another way it is trying to make up its mind about the next move. At this point I am 50/50 on the next move as it really seems to be in no man’s land. The longer we stay at these levels the better […]
November 3 Biotech Update
A pretty mixed morning with no real direction in the market. I doubt that we see it trade like this for long, although the longer we do this the better as we could be correcting through time instead of price. The biotech sector is just as mixed as the broader market with no real conviction […]
October 31 Biotech Update
A strong start to the morning but this seems a lot like a short term blow off rally but we need to see how the week closes. If we can end the day near the highs then I think the rally has some more legs in the near term but a close near the lows […]
October 30 Biotech Update
Sort of an up and down morning to start but the sector seems to be outperforming a little, perhaps on the back of good BMY data. At this point the market is in a show me state with both the bulls and bears expecting the next move to validate their view and positions. I still […]
October 29 Biotech Update
A little bit of consolidation in the sector, which seems perfectly healthy especially with the GILD “miss.” The broader markets are presenting a positive/neutral backdrop and I think that eventually leads to the sector playing catch up and then taking the lead. I still think we need to keep an eye on small caps as […]
October 27 Biotech Update
The market started a little weak this morning and while I am sure you can find a reason (Ebola, EU stress tests, end of POMO, etc), the market has had a nice run and simply needs to consolidate. This is not to say that we start the consolidation today but this is getting stretched in […]
October 24 Biotech Update
It was a neutral open for the market which is pretty positive given the selling related to the Ebola case in NYC. It is very positive to see the market shrug off the news as it now seems that the Ebola panic and fear is decreasing. I read that there are probably up to 8-10 […]
October 23 Bioech Update
The rebound is continuing with large caps continuing to lead but with good participation with the small caps, which is nice to see. It really is a little amazing to see how many V-shaped moves this market makes and how little memory it has day to day. In any case, I still think the path […]
October 22 Biotech Update
After a couple days of ripping higher the markets seemed to have calmed a little, which is understandable as this rip higher needs to be digested. The small caps tended to underperform the past couple days but it still might be a little too early to call it a trend and it could just be […]
October 20 Biotech Update
The world did not end in an Ebola pandemic this weekend nor did any economy implode, so the markets breathed a sigh of relief. We may be seeing the slow implosion of IBM but that damage seems isolated to the Dow (for now). When all is said and done it seems like a fairly neutral […]
October 17 Biotech Update
Looks like we are clearly having the bounce that everyone has been expecting (expect during the height of the selling where everyone expected the market to go to zero). This should have fairly significant legs even if it is a dead cat bounce. At this point the conservative stance is to stay agnostic about the […]
October 16 Biotech Update
The market continues its weakness but I am certainly encouraged that small caps are out performing. They were an early signal on the way down and so are potentially an early signal on the way back up. Of course, it could just be funds who were short are raising cash but I am not convinced […]
