The sector looks absolutely sick at this point but we are now down 12 of the last 13 days and are at the bottom end of the range. That is screaming reversal in that the sector is clearly oversold and is at a level that has been consistent support. It is possible that we become […]
October 28th Biotech Update
The sector is being the sector. It really seems to be coiling for a big move as the range has been pretty tight. I think the concern is that the broader market might be due for a pullback and given how poor the sector has been what is going to happen if the broader market […]
September 20th Biotech Update
Not a good start to the week for the markets and it seems related to the Evergrande, which is China’s second largest real estate company that looks on the verge of going bankrupt. The story is pretty typical with a property developer using too much leverage to grow too fast and get involve in unnecessary […]
July 28th Biotech Update
I think we should at the point where we can start to expect at least a dead cat bounce (and perhaps if we are lucky an actual reversal but I would not hold my breadth for that). I would have thought a turnaround Tuesday would have been in order but not quite. We are entering […]
June 1st Biotech Update
I was hoping that we would have a surge of M&A starting after this long weekend but I knew it was a pipedream and we are still waiting. There are still a ton of binary events coming in June (BIIB adu PDUFA, VRTX data, and ASCO to name a few) so we might not need […]
April 28th Biotech Update
It has been a rough start to earnings season. The sector has done pretty well considering, although it might highlight the need for large caps to do more deals as clearly they are not generating enough growth with their current pipelines and approved products. It is still early in earning seasons and it can still […]
March 31st Biotech Update
We are in an interesting spot. Yesterday started bad but we reversed higher and that continued today. It feels better with this bounce having a nice follow through. What is interesting is that we made a lower low despite the reversal., so in reality we seem to have established a downtrend even though we had […]
March 4th Biotech (and MLP) Update
So I think it was a week ago or so that I said that $140 was very likely and then these bounces made it perhaps a little less clear, yesterday made it clear. The question now is whether or not that level will hold. Everything is setting up for a bounce. We had a large […]
February 3rd Biotech Update
It seems like the reddit traders and the GME short squeeze neither broke the market or revolutionized it. They were unable to keep the price high and avoid the crash (I suspect the Robinhood restriction only hastened the crash) and the were unable to replicate it in their next target of SLV. So odds are […]
November 23 Biotech Update
The market dynamics remain the same. We are entering what tends to be a seasonally positive period of the year, which might add some tailwind to the broader market. While I still think the market is going to focus on the prospects of the vaccine coming next year as opposed to the out of control […]
November 11th Biotech Update
Below are my comments on the guidelines that you can forward along. So it looks like the market has digested the outcome of the election for the most part. I still think there is going to be a tug of war in terms of COVID with the vaccine news pushing the post-COVID names but […]
November 4th Biotech Update
The election is (sort of) over. While it ended up being closer than the polls indicated, it appears that Biden will win barring some unprecedented court decision to invalidate large numbers of legally cast votes. The closeness of the election, however, makes the Senate now lean Republican. I suspect both Georgia contests will have to […]
October 29th Biotech Update
As awful as the day was yesterday, the sector is not quite broken. This is not to say that things look great but a reversal and green close today could save it. Another day lower and we can call the trend as it would be a potentially lower low establishing. I am not very optimistic […]
October 26th Biotech Update
A mixed start to the week with the broader market and sector lower on the open. Nothing dramatic on either and nothing really meaningful in news flow, so a sort of drifting would not be unexpected. I think it is safe to say that we are in the calm before the storm with earnings really […]
October 22 Biotech Update
The past couple days have not been great but we still remain in the uptrend and that has to be the assumption until that trend is broken. We are probably at an area where support should happen and a bounce develop. If we continue downward and do not get any real support, it would raise […]
October 8th Biotech Update
We are setting a trend higher in the sector with higher highs and higher lows. What is actually interesting is that we are getting this new trend higher and have not had back to back green days since the middle of September. We have alternated red and green since mid-September and despite that back and […]
October 7th Biotech Update
Generally some good price action in the market and sector this week. There was a slight sell off when stimulus talks were called off but the market now seems to have forgotten that news. We are probably a month or so of way before the lack of new stimulus shows up in the economic data, […]
September 17th Biotech Update
The sector has been strong and today is the first real test of this move, although when I say test it is more to see how much stronger it can be. Most of the days this week opened strong and that strength continued but today we open red and so we get to see if […]
August 21st Biotech Update
Nothing too exciting to end the week. It seems like the $109 level on the XBI remains good support and now that we have bounced of that level we seem to be treading water. So far $115 appears to be acting as resistance so a strong move higher probably needs to show a clear break […]
August 3rd Biotech Update
It looked grim Friday for the sector. It simply could not catch a bid. I am sure most (all) of use tried not to think about the price action this weekend and were resigned to more selling. Today, however, we get a bounce. What is interesting is that having being a couple days removed from […]
