We are still close and trying. We did not make a run to the upper level and pull back to the $90 but did make a little move lower to the $88 level. It looks like it is support at this point and it reset the chart, which might have setup a move above $90. […]
June 14th Biotech Update
We are so close. We did break above the $90 level but I think the ideal scenario is to get some distance (say a little bit more move to the $93 level) and then a pullback to the $90 level which holds as support. I think a pullback from here to the $88 level (where […]
June 12th Biotech Update
We are trying to break out. The sector made a run at the $90 level yesterday but was unable to break out. Perhaps the continued cooling of the CPI numbers will be a macro push that the sector needed. With inflation looking to have peaked and likely meaning the end of the Fed hike cycle, […]
June 12th Biotech Update
There is a lot to catch up on the past week and rather than go through everything quickly in one day, I sort of want to take my time and review what I thought was most interesting. I think the sector is not necessarily in a bad spot and if we could find a way […]
May 31st Biotech Update
Yesterday was not great or at least it did not feel great. It looked as if we would have a nice little bounce but ended up red again. Stepping back, however, we are not in an awful position as long as we do not break below the recent lows. There seems to be some support […]
May 30th Biotech Update
Last week was disappointing to say the least. I was worried about the macro and the impact on the sector but it ended up not mattering. The market actually did pretty well but the sector was weak both in an absolute sense and a relative sense. That is always a difficult situation as it is […]
May 25th Biotech Update
The sector is in an odd position. We sort of made a higher high when we got to the $90 level, which would generally be good but we ended that day way off the highs and then followed up with a weak day. Generally, I would look at that as a failed breakout and a […]
May 23rd Biotech Update
A nice little rally yesterday and hopefully we can continue that momentum. Obviously the ideal scenario is that the sector can break out and go to a higher high after having set a higher low. To be fair, we have been in this situation before and even had a mini upward trend established only to […]
May 22nd Biotech Update
Note a lot of news to start the week but it does not mean that we are not setup for a potential good week. Last week was not great but if you take a step back and look at the bigger picture, we are not in a bad spot. A positive week could setup a […]
May 18th Biotech Update
The FTC news with AMGN and HZNP was an awful way to start the week but in all honesty, the sector seems to have held up. The green day yesterday could be setting up a higher low, which assumes we make a higher high. I would not say the all clear has been signaled but […]
May 16th Biotech Update
The sector absolutely cannot catch a break. Everything was looking good and solid and now the proverbial rug has been pulled out. There is no recovering today. It will be red but the broader move is not done (at least it does not have to be). I think as long as this pullback stays above […]
May 15th Biotech Update
A strong start to the week, which is good as there is not a ton of news to be driving the move. We did end the week with some good news but it is a relatively quiet start and the move higher bodes well. I often like to see how the sector trades without news […]
May 12th Biotech Update
While I thought we could have made a little push higher before the chart resets itself, it looks like we are in the midst of a pullback. I think anything into the $83 range would be reasonable in the context of a bull market pullback. Anything that moves lower than that would raise some questions […]
May 11th Biotech Update
Can we make a little run to the $90 level on the XBI? We got some nice momentum and that seems a reasonable spot for a pause that refreshes but it has been a pretty strong move higher that could pause at any point. May has been a very strong month and we are close […]
May 9th Biotech Update
Overall the market seems to be digesting the recent moves, which is fine. A day or two sitting around these levels before a push higher is probably better for the longer run potential of the next move. As long as we keep making higher highs and higher lows, it remains a positive environment for the […]
May 8th Biotech Update
We are in a little cycle (it seems) with a bid on Friday in the hopes of a merger Monday and then a little disappointment if there are not any deals. To be fair there has been a good number of Mondays with deals, which is probably not sustainable and perhaps there are other reasons […]
May 5th Biotech Update
I think this week has been pretty good for the sector. Ideally we can keep it going with a nice strong close. Given the number of merger Mondays we have had recently, there should be an underling bid into the weekend but who knows what the macro is going to do to the market with […]
May the 4th Biotech Update Be With You
We seem to be finally breaking out of the range especially if the broader market can at least hold up. The news continues to be good for the sector and that seems to be bring more investors and interest. As long as these new investors can make money there should be a nice momentum that […]
May 2nd Biotech Update
Certainly, a good start to the week. We basically got to the upper end of a range around $83 and I would not be surprised to see that act as a little bit of resistance, although if we are in a bull market it should not last too long. I would like to see us […]
May 1st Biotech Update
After taking a one week break from a merger Monday we are back at it. The lack of M&A was an explanation in previous years for the sector underperformance but that cannot be said this year as it has accelerated. Yes, there could be other reasons for underperformance but bull markets climb walls of worry […]
