Assuming nothing crazy happens, the price action has been much better than I would have expected given the headline news. What we do not know if what management said to the buyside at the thousands of meetings that occurred around the conference but clearly there is more interest in the sector despite the lack of […]
January 11 Biotech Update
While we still have two trading days left this week, it looks like we will end up with a decent performance for the sector. Given the lack of news at JPM, this appears to be a win (assuming it continues) and seems to support the argument that the Monday selling was fast money getting out […]
January 10 Biotech Update
The sector did better yesterday, which seems consistent with the story that long only funds came in to buy the dip Monday. That being said, it is only one day of confirmation and there week has some time to go. There has still not be a lot of news and believe that if we end […]
January 9 Biotech Update
While yesterday was not a good day for the sector, it certainly could have been worse. The commentary out of the trading desks was that the early selling was hedge funds (fast money) who were positioned long expecting more M&A and then the modest recovery was long only funds coming in to position for a […]
January 8 biotech update
This is not a good start to JPM if this is the best the sector can do in terms of fundamental news. Unless news picks up, I would count it as a win if we end the week flat. It is not that there is particularly bad news but the expectations heading into JPM are […]
January 5 Biotech Update
JPM is just about here and traders are suddenly turning anxious. The days leading up to the meeting have gone without a big splash deal and doubts are starting to creep into investors about the potential that JPM falls flat without a major catalyst. There is still plenty of time but that is a real […]
January 4 Biotech Update
Today we are seeing a little consolidation for the sector after a solid start to the year. A real strong sentiment signal would be the sector overcoming this early morning selling to end the day green but even if we stay red it is not that big of a worry after the past couple days. […]
January 3 Biotech Update
Yesterday had a nice start to the year, which seemed to be part of a broader rotation in the nasdaq. There was some “news” that I want to highlight but the bulk of today will be another non-consensus 2018 idea. 1. The FAERS released an update to its database of adverse events reports and it […]
January 2 Biotech Update
Welcome to the New Year full of hopes and questions. In the lead up to JPM (and likely a slow build up in news as companies try to take the spotlight earlier and earlier every year), I will spend the week on broad 2018 themes and thoughts. Of course, if news happens I will focus […]
December 18 Biotech Update
Santa rally. Tax reform rally. Relief rally. Take whatever you prefer but the market and sector seems to have caught a bid. We need to see if the sector matches or catches up to the broader market but we are likely out of major news until JPM. There is always a chance but we are […]
December 15 Biotech Update
The question I keep asking myself is whether or not JPM really will be the positive catalyst that everyone is expecting (or really hoping for). We know that companies tend to save good news for JPM and good news should push stocks higher especially if they have been lagging. While I understand that logic, I […]
December 14 Biotech Update
Volume and news is starting to dry up but there were some interesting tidbits to talk about but they are more interesting than really game changing. In any case, we are quickly approach the holiday lull but on the positive side that means we are closer to the JPM rush of news. 1. CLLS reported […]
December 12 Biotech Update
The sector sort of held in there for the ASH hangover but was sort of hit or miss. With ASH winding down, we are seeing the winners selling shares and the losers trying to cut losses. At this point, it is either a wait for JPM or hope for some news out of nowhere. 1. […]
December 11 Biotech Update
There is no ASH hangover quite yet but it usually comes pretty quick after the conference. Perhaps this year will be different given that outside of a few good days, there was no real run up into the conference. There is a lot to talk about and so I will take the next couple days […]
December 8 Biotech Update
Finally, he sector responded well to good news and held those gains. That bodes well heading into ASH (assuming more positive news) but we obviously cannot give all the gains back today. There is not a lot of news heading into ASH but that is likely to change this weekend. 1. GILD bought a private […]
December 7 Biotech Update
I thought we would have to wait until ASH to get a good tell on the market but if the sector cannot hold onto gains today, then there is a real issue. There is good news across the board and different types of good news. These are the fundamental news days that are where investors […]
December 6 Biotech Update
The sector and stocks are going to give everyone whiplash. Despite their being some out performers, it seems like every move higher gets smashed later in the day. There are too many stocks to count that make a nice move higher only to end the day red. As I noted yesterday, it is unclear the […]
December 5 Biotech Update
I was quite wrong about the sector setting up well and it is not immediately clear to me why the sector did so poorly. I want to go through a couple of ideas today and there is probably no clear answer but it is something that is useful to think through. There is not a […]
December 4 Biotech Update
The sector is tied to macro but given the macro events (tax bill status and Flynn flipping) it is not surprising to see this. Ultimately, it is more likely that the fate of the tax bill will drive the market even if longer term the Flynn news might be more impactful but it is more […]
December 1 Biotech Update
It looks like the market and sector are going to be tied to the fate of the tax bill (at least that is how it seemed yesterday) and that makes sense given how many breaks it provides to businesses. The sector modestly outperformed the broader tech sector, which is likely some kind of catch up […]
