October 13 Biotech Update

It looks like we started the week in rally mode but last week certainly shows how quickly that can change from day to day just as today changed quickly as well. I feel like the market is Schrodinger’s Cat at this point. On the one hand, we are at support that has been very strong […]

October 8

It was basically a neutral open in the market this morning with more green than red. While I would certainly prefer a market ripping higher, it seems like a sharp short covering rally is not going to halt the down trend. A slow grind higher as buyers enter the market seems better but after the […]

October 3 Biotech Update

We are finally starting to see the snap back rally and the question at this point is going to be the sustainability. Ideally we would like to see increasing volume and closing near the highs and at this point my base case is that this has some legs over the near term. What I find […]

September 26 Biotech Update

Well, we have some more news today but still not a ton. I wanted to get out a quick and early note because I will be busy the rest of the day. The market seems to have no memory from day and day and is really trying to find a direction. I still lean towards […]

September 24 Biotech Update

After a fairly weak start to the week, the sector seemed a little stronger this morning but the markets are teetering on a much larger correction. At this point, however, the markets may be oversold enough to get a near term bounce. The key is whether that bounce will be significant enough to push the […]

September 18 Biotech Update

Seems like a mixed day for the sector with the broader markets offering a nice background for gains but the biotech sector is not really rallying as you would expect. It is still early and I am not sure there is too much to read into this but one would prefer to see a more […]

September 12 Biotech Update

Another day and another bit of weakness in the sector and market. The longer that we churn along at these levels the more it looks like stocks are resting for a continuation of the main trend (higher). It is not a high conviction view but unless the market breaks to the downside soon, it looks […]

September 8 Biotech Update

A slow start to a week, which I guess should have been expected given that last week was not exceptionally news filled. Without any real catalysts, it is likely the sector will track the broader market. The one advantage is that we have a series of investor conferences in September. While these usually do not […]

September 4 Biotech Update

Markets are generally moving higher again this morning likely on the back of quantitative easing making its entrance into Europe. I expect a slightly stronger reaction to this news but it is still early, so I would not be surprised if the market strengthened throughout the day. Debates over the utility of QE aside, they […]

September 3 Biotech Update

So the market continues to make marginal highs and essentially is drifting higher as the path of least resistance remains slightly higher each day. At his point, however, we cannot discount the possibility of a correction as a lot of stocks have had good runs. Trying to time when these corrections occur is losing game […]

August 25 Biotech Update

I do not want to say this is a slow news day but outside of the ITMN deal, there is really not much else going on. The market is rallying and the sector is clearly moving with it if not taking the lead. Perhaps this will be the start of the long awaited catch-up in […]

August 19 Biotech Update

It was an odd start to the trading with the market fairly benign if not positive but many biotechs being sold and in the red. There was no real news to trigger the selling, so I suspect it is simply a technical move after a lot of strong moves in the past week. Assuming that […]

August 6 Biotech Update

The market had some volatility yesterday and inversions seemed to be dealt a blow this morning. As such, I will focus on these two topics as they seem to be driving the majority of trading. 1. If you were watching the market yesterday, then you may have noticed what seemed like a random and significant […]

July 28 Biotech Update

Not a great start to the week but the sector seems to be tracking the broader market selloff. I am really of two minds in that there are many reasons to expect the broader market to hit a significant air pocket as it seems pricey by a number of traditional valuation methods (CAPE and so […]

July 22 Biotech Update

Today and tomorrow are more of the same in that we seem to be in a holding pattern for the large cap earnings. So I will keep this short and sweet as there is not really a ton to talk about. As I have noted before, the reaction to the earnings is going to be […]

July 18 Biotech Update

I am back after my three day trip to NYC and while it seemed that the sector took a hit, today’s action seems to be a good start to recapture a lot of the losses. My point is not that the pullback was insignificant but more that it seems more like a pause/pullback that refreshes […]

July 14 Biotech Update

It was a mixed day in the market as the broader market seemed good but biotechs seemed more mixed. I am not sure these is much to make out of it as the key over the next couple of weeks will be earnings (at least for the larger biotechs) and then once we get through […]

June 11 Biotech Update

Another relatively slow summer day in the market in terms of trading but the sector seemed to outperform the broader market. Even with that marginal outperformance, I would not read anything new into in that I still believe that the macro is going to drive the next move. That being said I would not be […]

June 10 Biotech Update

Yesterday was a busy day and ended up being a little crazier than I planned but I am not back in the office and ready to think about some biotech. I did not have a chance to check the market yesterday so I am not sure how it traded but it seems like it is […]