A decent start to the week, which was to be expected with the large deal. AMGN held up better than I would have expected, and the sector did well but remains in the range. We are getting to the holiday season and so I would not read too much into the moves but we still […]
December 12th Biotech Update
I think we are clearly in the range given the news flow and the market reaction. It is not necessarily bad but I think one has to play the range until shown otherwise. This has been a pretty long time in the range and so the break out (up or down) should be pretty clear […]
December 8th Biotech Update
It was basically a flat day but certainly some movers beneath the surface. I think the relatively flat market did not reflect the large moves in some of the news. We seem to be ending the year with news and even more news. While not all of it has been good, there is enough good […]
December 7th Biotech Update
I will spend less time on the general market but more on two big data readouts. There is nothing that has changed in terms of the broader sector or market. I still think we are range bound and likely will remain so through the end of the year. GOSS announced a positive trial and got […]
December 6th Biotech Update
The year seems to be winding down as we stay in this little range. I am not convinced that this is a bad thing (as long as we end up breaking to the upside as this will be nice strong support). I think the Fed and rates has faded to the background a little but […]
December 2nd Biotech Update
We remain in a range, although there certainly seems to be a pattern with the larger caps outperforming. As I have noted many times, I suspect that if generalists are going to enter the sector they will first do it through the large caps and then down the capital structure to SMID. We need generalists […]
December 1st Biotech Update
Not surprised by the positive day given the news. Positive clinical data. M&A interests. Add in seasonality and it was a nice constellation of events. I wonder what happens later in the month as we get closer to tax loss selling. This is a sector that certainly has its share of tax loss selling potential […]
November 30th Biotech Update
Are we setting up for the Santa rally? It would be a nice way to end the year and perhaps kick off early next year with a strong JPM. I think we are getting closer to the end of the rate hike cycle and if we think the market is typically 6 months ahead then […]
November 22nd Biotech Update
Not the greatest start to the week but I have a hard time reading too much into this week’s trading. I did notice that large caps outperformed SMID and that has been my theme for a little bit. I still think investors come back into biotech first through large caps and in some ways the […]
November 21st Biotech Update
This should be a week of lower volume as people get ready for the Holiday. These can be a little more volatile, especially when volume dries up later in the week. Of course, it could end up simply being a boring set of relatively flat days. If we do get a bigger move, I would […]
November 15th Biotech Update
We had a nice little continuation yesterday and I would not be surprised if we do not run into a pause that refreshes (or at least it would be healthy to do so). There are a couple of different ways to think about the recent move. I would lean towards the focus on the Fed […]
November 14th Biotech Update
We had a nice little rally to end the week and while I would like to say it was related to strong fundamentals, I think it was more macro related. It certainly helped that the sector has generally had a strong earnings season (as compared to something like tech) but I suspect that the market […]
November 7th Biotech Update
The data seem to indicate that inflation has not clearly broken and the Fed continues to talk about rising rates and keeping them high until it breaks. I think I saw that expectations are now that rates peak in June 2023, which is longer than the previous expectation of March 2023. As long as the […]
November 3rd Biotech Update
Guess what? The Fed speaks and the market declines (along with the sector). As I said the earnings season has been quite good for the sector but as I have also said one should not try and fight the Fed. As long as the perception is higher rates for longer, then I do not see […]
November 2nd Biotech Update
The sector has done pretty well this week considering the broader market and the concerns over the Fed. I still think we should remember not to fight the Fed but the fundamentals for the sector in terms of the earnings have been generally positive. There were some outliers like ABBV but for the most part […]
October 31st Biotech Update
A slow start to the week. It is not a bad start but a little weakness after a nice little run last week is a little disappointing. That being said we ran right up to the upper end of the range that seems to have developed and so it is not crazy that we struggle […]
October 28th Biotech Update
We were hitting the upper end of the range and so it is not completely surprising that we were a little weak. The tech earnings have not been great and that could hit the broader market, which would not great for the sector. That being said, The sector has been holding its own and the […]
October 27th Biotech Update
A strong start yesterday but it weakened in the afternoon. We are near the top of the range that seems to have developed. It would not be surprising to see that upper end act as resistance. I am not sure there is anything that can happen today that could be definitive. Even if we break […]
October 25 Biotech Update
Not an awful start to the week. Yesterday could have been better but it is a solid day today (at least at the start). We have been in a pretty tight range and I would not be surprised this week if we do not get to the $83.50 level on the XBI. When we have […]
October 19th Biotech Update
The market has not done too bad this week. If I take a step back I would almost be tempted to say that the sector is holding support around these levels. Obviously we can still break down if the market restarts its move lower but given at least a benign broader market, I think the […]
