Well, we finally get another deal and it is pretty telling how the sector reacted. Obviously there is a tailwind but it is not universal and we need to see how it plays out today. There is a tug of war going on in the market and sector and it is amazing that the same […]
April 27 Biotech Update
The sector has to deal with both some negative headlines and the lack of any deals on Merger Monday but it is difficult to read too much into the action this morning as we are going to get a lot of earnings this week. So I would wait and see how we are at the […]
April 24 Biotech Update
Some news to talk about today with interesting implications and I will try to cover most of them. The sector seems to be lagging early despite some business development news but we also had a big miss by BIIB that might be acting as a headwind (the M&A rumor seem to save the day so […]
April 15 Biotech Update
It is a busy day so I am going to try and keep this short but every time I write that it seems like I write the same amount if not more than usual. The sector basically looks in-line with the broader markets and large caps actually seem to be participating in the move higher, […]
April 14 Biotech Update
A weak start to the day that essentially appears to be a continuation from the late selling yesterday. It still seems to be the case that large caps are underperforming the SMID, which has been the case for awhile. I suspect that is going to be a difficult trend to break but for the long […]
April 8 Biotech Update
It was actually a good morning for the sector with large and SMID caps doing well. While that is a good first step, we need these moves to not only stick but strengthen at the end of the day. Another fade would indicate that the selling pressure remains a headwind. The sector is in an […]
March 11 Biotech Update
So the sector clearly ended up outperforming yesterday despite a beat down in the broader markets. That being said I still see the large caps as the real laggards in the sector and that seems to be continuing into today. As I noted before, I do not see that as a positive as it looks […]
March 10 Biotech Update
The pullback continues. It seems like the downdraft may be extended in the near term setting up a bounce but I am not convinced it would be more than simply a bounce as part of a larger correction. I still worry about the underperformance of the large caps in that it is the SMID that […]
March 6 Biotech Update
It seems like every day I write this week is a weak start to the morning. It is not surprising that the sector is pulling back after the run yesterday and the renewed bubble chatter. Every run in the sector the past two years has brought out the bubble chatter and every time it was […]
February 13 Biotech Update
Market seems pretty benign but the sector appears a little heavy. As I have been saying the only thing we can have confidence in about the market is the lack of confidence. Yesterday it looked like the sector really wanted to move higher but this morning appears to be sending the opposite signal (perhaps we […]
February 10
Who order gains and losses with a large side of chop? This is a market clearly looking for direction and positive signs one day turn into negative signs the next. A stock that you expect to be an early tell of market sentiment ends up just being another victim of the chop. Markets like this […]
February 9 Biotech Update
A good start to the week with the markets a little week but the sector outperforming. This is not totally surprising given the underperformance last week in that there should be some sort of bounce back. It is certainly positive to see but I wonder about of the staying power and whether this is simply […]
February 6 Biotech Update
Well, I can honestly say that on Wednesday I did not think the sector would be looking this good on Friday. The economy seems to be improving, the macro (outside of the Greek noise) seems benign, and the sector seems to be shrugging off the hep-C discounts. I am a little surprised but you also […]
January 30 Biotech Update
I want to write this quick to get it out as I spent the morning taking the children to the dentist, so I have a late start. The market is bad (again) but this is really nothing new. This churning is really giving gristle to the bulls and bears. Bears are going to argue it […]
January 27 Biotech Update
A bad start for the market in terms of earnings, economic data, and price action. It appears that FX and the capital spending decline coming from oil prices is creating a significant headwind. Despite the gap down, biotechs were basically unchanged if not higher. That is quite the odd scenario as risk off should hit […]
January 26 Biotech Update
It has been a mixed start to the week both in terms of the macro background and also stocks within the sector. It seems like both are looking for new leadership (to the upside or downside) and I still lean towards the next move being higher but it remains a low conviction view. On the […]
January 21 Biotech Update
The markets recovered nicely yesterday and there seems to be some slight follow through today with the rumor that the ECB is going to do 50B Euro/month QE. That would be on the low end of the “surprise” estimates and I am not sure how that would be perceived. Ultimately I expect some volatility and […]
January 16 Biotech Update
Well, this morning started a little better but I am much more interested in how the market ends as we were due for at least a short term bounce. Ironically, the new focus on the Swiss currency has removed it from oil which is doing well (perhaps investors burned by the Swiss need to cover […]
January 9 Biotech Update
A weak start to the day but there seemed to be a lot of volatility, so it is hard to get a sense of exactly where the market wants to go. I suspect the early pressure is lower but a late day rally would signal that bulls are once again in charge- meaning that the […]
January 8 Biotech Update
A great continuation for the markets but I do not see a lot of great action in the biotech sector. We spiked higher but those original moves have not held and we seem to be retracing the gaps. If those gaps in the sector cannot hold with the markets running, then that is certainly an […]
