Yet again another weekend is passed and yet again there are no major M&A. Yet again, it no longer seems to matter. A little different this morning is not a major outperformance by the large caps but it is still early. There is at least some little bit of news to start the week but […]
September 27th Biotech Update
We continue to see the disconnect between the IBB and XBI, where the large caps are outperforming the SMID. Given that the previous range break on the IBB did not hold, I suspect we will need greater SMID participation but it is not crazy to see investors first put money to work in large caps […]
September 26 Biotech Update
Yesterday was a little odd. It was generally a good day for the sector but a lot of companies had very large ranges for no apparent reason and on no news. Usually you can see those swings at turning points but it seems odd to be happening essentially in the middle of a range bound […]
September 25 Biotech Update
The sector appears to be gaining some momentum but we need to see the strength continue and ideally broaden. Positive data being rewarded is good as there have been times where positive data got nothing than a quick spike only to be sold later in the day. The IBB is back at the high end […]
September 24 Biotech Update
An interesting start to the week, although we still like real M&A or business development. Unlike previous weeks, however, there is actually some interesting news to discuss. The sector is green and outperforming the broader market but the move seems pretty isolated so ideally this green will broaden as the day continues. 1. The big […]
September 20th Biotech Update
Still a boring market in terms of news. The sector appears to have successfully defended the bottom end of its range but one could argue it done so simply by performing in-line with a strong broad market. Given the broader strength it would have been an awful signal to breakdown but regardless of the reason, […]
September 18 Biotech Update
The sector struggled yesterday and it still looks like testing the bottom on the range is possible. Perhaps the China tariffs news cleared the market a little and we might avoid that scenario. It remains to be seen but a green start today is nice to see but it would be better to see it […]
September 17 Biotech Update
Not a great start to the week in terms of trading as it looks like we are set to retest the bottom on the range (yet again). As long as the market does not start a larger move lower, there is nothing to think that the range will not hold again but as with any […]
September 13th Biotech Update
We are finally getting a broad snap back rally but it needs to be more than a simple morning rally that is faded as the day goes along. If this rally is not built upon during the day, then odds are it simply reset the RSI and opened up a path to retest the bottom […]
September 12th Biotech Update
The sector is certainly struggling and its inability to generate any consistent buying interest after the sell-off is certainly worrisome. All of that being said there are so many names that have been red everyday that there has to be a snap back rally at a minimum. CELG has lost over $1.2B in market cap […]
September 11th Biotech Update
While we have another snoozer of a day in biotech land, it does provide some insight into the trading bias of the sector and it remains negative. You would think that the path of least resistance would be to test the upper end of the recent range given the sharp sell-off but at this point […]
September 10 Biotech Update
There is nothing going on in the sector. No real news. No new deals. You would have thought that September would bring about some news but it seems like we are stuck in the summer pattern. It looks like that breakout failed its test and the next key to watch is what happens at 120 […]
September 5 Biotech Update
The hurricane thankfully missed us, so back in the office. The sector had a rough day yesterday but it only took us to the area that should act as new support. A quick dip under 120 or so would not be bad but it has to be quick. Honestly, we have already tested the support […]
September 4 Biotech Update
Another slow start to the week. Sometimes there are expectations for deals after long weekends but the sector continues to disappoint in terms of M&A. Given how important M&A was to many sector theses at the start of the year (and that includes me), it is impressive to see the performance. Explaining the performance is […]
August 30th Biotech Update
The range finally seems broken and pretty decisively to the upside. The sector is not just moving higher but it is outperforming the broader market on a relative basis. Given the strength of the move and the overbought conditions across the market, I would not be surprised to see a pullback in the near term. […]
August 28th Biotech Update
We got off to a good start yesterday and there is perhaps some early follow through this morning but not much. We are inching closer to the upper end of the range and but are still within it. It remains a range bound market until proven otherwise, although we are also getting to the end […]
August 27 Biotech Update
A good start to the week both in having news to talk about and the price action. While it is easy to get excited about good price action, we remain in the range. Just as many felt that the sector would break down when we were at the low end, it is easy to get […]
August 24th biotech update
The snoozer of a week continues with the sector still chopping in its range. Perhaps next week we wake up a little but odds are we are stuck in this pattern until the fall conference season begins in September. 1. We will have some news this weekend with the PFE tafamidis data and while odds […]
August 22nd Biotech Update
Still not a ton of news and the sector moved higher with the market taking it a little further from the edge but still well within its range. I am still watching to see how the relatively performance in the sector plays out in that will we see large pharma continue to outperform followed by […]
August 20 Biotech Update
I understand that it is still the summer but this is an absolutely no news start to the week. We remain in a choppy market until proven otherwise and this lack of news makes it difficult to discern anything under the surface. Ideally, you would want to see how stocks react to news but we […]
