The hits keep coming for the sector. It is certainly underperforming compared to many other market sector but let us be clear. It is not sentiment. I know it is frustrating to see the sector perform poorly but this year has seen a dearth of M&A, clinical and regulatory failures, and now a disaster of […]
April 14th Biotech Update
I will try and make this quick today as we have strong storms and who knows if power will hold out. Luckily there is not a ton of news but that does not mean we are not at an important point. I am a little torn in how to see the sector. We bounced and […]
March 18th Biotech Update
Is the recent price action in the sector bullish or bearish? It is really difficult to call it at this point. It is completely consistent with a bull market for a sector to pullback and consolidate a move higher. That being said the sector has conditioned us over the past month or so that pullbacks […]
February 25th Biotech Update
We got what we needed to start a bounce in the sector but it has to be followed through today otherwise it is simply a bounce that reset oversold conditions, which allows for more downside. We are at support levels that should be good enough to generate a little bounce (at least), so I lean […]
February 4th Biotech Update
The market seems to have calmed down and now we are entering the grind higher phase (so it seems). I would not argue with you if you were to tell me that the market is overvalued and we are in the late stages of the bull market. I would note, however, that these late stages […]
February 1st Biotech Update
It is an interesting start to the week and one that will also have the start of earnings season for biotechs. The GME saga continues with both a push to keep GME high but also a push to move into SLV. I am more interested in the SLV plays in that it provides a better […]
January 29th Biotech Update
Yesterday was interesting and today it seems to have settled down a little. As I noted all week this was going to cause some volatility in the market and it has. I am still not sure if the supposed rise of reddit finance (so to speak) changes the market in any way. It could very […]
January 28th Biotech Update
I was right about being careful in the market given the potential quick moves and dislocations. I think those warnings are the same today. There seems to be a lot of issues with large funds and then you have masses of retail investors piling into stocks trying to squeeze them and continue the party. It […]
January 27th Biotech Update
The market is a little odd right now. We are near or at highs and markets at these levels tend to continue higher. Ultimately they will correct and while the moves higher tend to look like grinds, the corrections are fast. What makes the market odd to interpret right now is that we are getting […]
January 25th Biotech Update
The week starts as last week ending which is quiet. We are starting to get earnings this week which will pick up the news flow but it is not really into next week that the biotech earnings starting hitting in earnest. This week we generally are getting some large pharma which will help us get […]
November 20th Biotech Update
I think choppy might have been the best description of the market at this point. This makes sense give the competing influences on both the market and economy. I would not be surprised to see this chop continue or perhaps even see some consolidation. The broader market seems in a little more precarious position than […]
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 23 Biotech Update
We could be setting ourselves up for moving to a higher high with the reversal yesterday. While it certainly seems possible, this would also be the potential start of a new trend so I would be cautious in putting too much stock in it until we see some real confirmation. In this case it would […]
September 21 Biotech Update
A weak start to the week and it is not immediately clear the cause. The sector certainly had a decent run last week and a little consolidative pullback is not crazy. The broader markets were weaker last week and so this could be a continuation of that move. I actually sort of like this setup […]
September 16 Biotech Update
The early week deals have set a nice rally in the sector which was expected. The positive is that we not only broke above the last lower high but also closed above it. As such, I think it is clear that we have broken the down trend and so the question now is whether we […]
September 4 Biotech Update
When I said that the move would be fast when the sector decided to break out of the range, I guess I was correct. Unfortunately, it was lower as with the broader market. I suspect that the sector will still underperform the broader markets and it appears that the broader markets appear weak. That is […]
September 3rd Biotech Update
The sector cannot seem to make up its mind. It has basically been altering red days and green days for a little bit. Every day you think there is momentum to the upside it reverses the next day. Every day you think it is just about to break day, it rallies the next day. That […]
September 2nd Biotech Update
So clearly the sector does not seem ready to move to the top end of its range. If anything, then it looks like a clear trend lower. The move earlier in the week is starting to look a lot like a lower high. It is an odd sort of downtrend in that the lower highs […]
August 31st Biotech Update
Hopefully with some positive news to start the week, the sector will have a positive reaction. The underperformance has been frustrating to see but I still think we have not broken below support. As such, this is setting up as a perfect bounce off the low end of the range with the news to start […]
August 17th Biotech Update
Hopefully, it was not a sign that my week starting with stepping barefoot into a pile of what I knew was either dog vomit or diarrhea and then having to figure out which it was and then clean it up. It did not get any better with TD Ameritrade being down. So how the market […]
