Not a lot of news to start the week. Ideally we need to get some positive momentum going in the sector but there is not a ton of fundamentals to get it going this week. It would not be bad to see the sector get some upside movement without a lot of fundamental news but […]
March 14th Biotech Update
Support held yesterday and perhaps that is an early positive sign that we have reached the bottom of this little selloff. One day does not make a successful test of support but it was nice to see and ideally we can build on that green and even accelerate it into the end of the week. […]
March 13th Biotech Update
Well, we are no longer hanging at the higher levels and my original thought that we would test the upper end of the previous range was correct. We are getting close and perhaps the intraday low the other day was the test, but we are pretty close. It is probably a reasonable time to be […]
March 11th Biotech (and Oil) Update
We continue to hang out at these higher levels, although we do not seem to be able to catch any real momentum to the upside. I think we are moving out of what is traditionally more challenging seasonality to more positive. There is typically a post-JPM overhang as secondaries hit the sector and we have […]
March 8th Biotech Update
We are hanging out at these higher levels, and it makes me a little more bullish that we might be able to stay in this range. My ongoing concern was that there was not a lot of volume at these levels and so the support might not be that strong. While I would not be […]
March 6th Biotech Update
Despite the good start to the week, it has not been as positive of a continuation. We are at the lower end of a range but one that I do not have confidence can hold. I like the $94-$95 level a lot more given that it had acted as resistance for awhile. I do think […]
March 4th Biotech Update
It looks like it will be a good start to the week. I do sort of think that we are in a holding pattern of sort as we have not really continued the breakout, but we also have not went back to the upper end of the previous range. I thought that a test of […]
March 1st Biotech Update
It has been a good week, but it has also been quite a quick run. The recent weakness is not necessarily bad if we successfully back test the breakout. The $94-$95 level on the XBI was the upper end of the range and was resistance. We clearly busted above that level this week, but it […]
February 28th Biotech Update
A big in the sector. We had an underlying bid that I thought was positive and then we get some positive news. I am not sure the news is the real cause or just an excuse, but we are clearly breaking out in the sector. I would not be surprised if there is some sort […]
February 27th Biotech Update
It was a good start to the week albeit on limited news. I actually find it encouraging to see what looks like a breakout on no major news as it speaks to an underlying bid in the sector. Obviously major news can always change the tone of the market but it is certainly a good […]
February 23rd Biotech Update
We are very close to breaking out. I think it would be a nice way to end the week to get that initial breakout and run higher but there is actually not a lot of news that could drive it. Rates expectations are a little less dovish with most now not expecting the first rate […]
February 22nd Biotech Update
Are we at the pullbacks that refresh stage? The past couple of days have not been great but we are still hanging out at the top end of the range. This bouncing around at these levels is resetting any overbought conditions and makes a breakout more likely to cause a run as opposed to being […]
February 20th Biotech Update
We are very close to breaking out on the XBI. One more very strong day or a couple days of strength would be enough. I think the charts are not that overbought and so we have a decent chance to sustain the breakout but one could also look at the chart and see a clear […]
February 16th Biotech Update
We seem to have quickly moved on from the rate and CPI scare. The sector bounced back from what looked to be the bottom of a range to the upper end of a range. I went from paying attention to $86 for a breakdown to now the $94.40 range for a potential breakout. I am […]
February 14th Biotech Update
Just when you think rates and inflation no longer matter as much to the sector and market they come back from the dead. Whether this is a one off event or something that matter longer term is still not known. We have not really broken support in any way and so we can still look […]
February 12th Biotech Update
I feel like the sector is in a better place to start this week than the start of last week. I have been thinking that we are closer to the end of the consolidation than the beginning and the trading last week reinforced that view. If we can build on that move early this week, […]
February 8th Biotech Update
Still in the choppy sort of market but we are at least holding up. I understand the annoyance that the broader market is doing well and the sector is really lagging from relative sense but when the sector runs it will make up a lot of this underperformance. January was a massive month for follow […]
February 6th Biotech Update
It was a nice day yesterday not because of a massive rally but one where we started solidly red but rebounded into the green. It is always nice to see those reversals and it was not as if it was a quick dip into the red but one that was pretty sustained for most of […]
February 5th Biotech Update
I would not say that we are at the end of the chop for the sector but are probably closer to the end than the beginning. I saw some notes that blamed the lack of rate cuts on the market but I am not sure that is the issue. It is true that rates remain […]
February 2nd Biotech Update
I guess we are not done with rates quite yet. We do seem to be a little sensitive (at least more so than I would have thought). Fed day was not great but as rates fell, the sector did better. I think we are all done with being so tightly correlated with interest rates but […]
