Nothing is going to change my overall view on the market and the sector, where I think we need to touch that 52-week low to find significant longer-term support. We keep seeing rates going higher and while the cause of that does not matter, the increasing costs of capital always end up being a drag […]
August 21st Biotech Update
Last week could have ended worse for the sector but I do not think anything is saved. I still think we end up testing the lower $70s on the XBI before all is said and done. It looks like the 52-week low is the lower $72s and below that level we would be looking at […]
August 17th Biotech Update
Well, the lower low seems to have been put into place as the sector is acting pretty heavy, which is no surprising given that the broader market appears weak as well. I think we end up get to the 52-week low area for the sector (around 72 on the XBI) before we likely get real […]
August 15th Biotech Update
The sector is not doing great nor is it really breaking down. We are perhaps in the post earnings, late summer malaise that drifts. Of course, that does not mean that we cannot have significant movements or price action in particular names but I suspect that we are going to be slow on the trading […]
August 11th Biotech Update
Have we hit a bottom? There seems to have been a clear bounce from a level that looks like it could be support but there also seems to be a clear downtrend with lower lows and lower highs. So this little bounce is good but it needs to get above $85 before we can relax […]
August 10th Biotech Update
I am back but my luggage is still on vacation. Hopefully, I will soon learn of its fate and it will find its way home. I need to catch up on the sector trading and will have more remarks on that later but there is more than enough news to keep me busy with reading […]
July 31st Biotech Update
Momentum. We need to build momentum. We had a good end to the week on the backs of the RETA buyout but a strong day and then back to the struggle is not really that great. It brought us out of the danger zone but we need to get over $87 on the XBI on […]
July 28th Biotech Update
Finally a little bit of traction in the sector and it could be a little relief rally or it could be news related. It is absolutely critical that this is more than an early morning rally that loses steam and we end up red. We are at an area where a lower low is possible […]
July 26th Biotech Update
Not really an inspiring week for the sector so far. The broader sector continues to muddle where we really need some excitement and momentum. I still think we in potential trouble when the broader market corrects. Perhaps we somehow get money when the broader market corrects but we generally go down even more when the […]
July 25th Biotech Update
The sector has me worried a little as it is holding up but cannot follow the market higher. There has been real strength in the broader market but the sector has barely been able to eke out anything. What happens when we get a broader market correction? In some ways, the sector is perhaps next […]
July 18th Biotech Update
So far so good this week. We definitely need to continue the strength. I would have ideally preferred to finish closer to the highs but a nice strong green to start the week is good. We are above the $85 level and not messing around this level and moving higher adds to the initial strength. […]
July 17th Biotech Update
Last week was a weird week. It looked good but there was one strong day and a lot of days that could not build on it. To be fair, those days did not look bad as the sector held up to some selling pressure as well but I would not look at them as positive […]
July 14th Biotech Update
Not a bad week considering where we started. It could look even better with a strong close. To be fair, however, most of the gains this week are basically in one day and the rest has more or less held those gains more than actually built on them. That is why I would prefer to […]
July 13th Biotech Update
While we are not out of the woods, it looks like the week is going in the positive direction. I would have ideally preferred a more consistently stronger week, but we are grinding our way higher. Unfortunately, it looks like the vast bulk of the move is one great day but if we can get […]
July 11th Biotech Update
It was a very nice start to the week, but I sort of feel like we are in a strange spot. I am not convinced that the sector is now clear of breaking down. I can easily see a couple days of weakness that puts us under the lows of yesterday. I can also see […]
July 7th Biotech Update
The sector is in a tenuous position and yesterday did not help. In some ways it looked like we broke down below the support but given how we climbed back and got a lot of the losses back saved a little. If we can end strong and continue the late day momentum, then yesterday could […]
July 6th Biotech Update
We are bouncing around support and while it is good that it holds, it is dangerous for the sector. If we wanted to be positive, then we are grinding out some volume adding more strength to this support and providing a nice base from which to move higher. Given that we have all experienced the […]
July 5th Biotech Update
I suspect we are going to have a slow week even though the holiday is over. The summer is generally going to be slow as people are out of office and with a holiday landing on a Tuesday, my hunch is that this week is going to be slow for even the summer. I do […]
June 27th Biotech Update
This is it. We either bounce from these levels or we are setup for a much larger selloff as we set a lower low. I strongly suspect that we rally as we have basically gone straight down. Even if this level ultimately fails in the next week or so, I think the selling has been […]
June 26th Biotech Update
We are running out of chances. We desperately need to find a higher low and cannot fall below $82.5 area as that would look like a lower low. On the positive, we are looking oversold after last week and so I think it would be difficult to continue the selloff and break below that level […]
