Well, this is why I thought that there was not a clear election outcome that would be all bullish for the sector. The nomination of RFK to head HHS sent the sector down and regardless of what one think about the nomination, it increases uncertainty. He has talked about removing vaccine approvals, blocking others, and […]
October 30th Biotech Update
Not much to say about the sector as we continue in the range and are a little higher today as we move towards the upper end of the range. Of course, it is always nicer to be near the higher end than the lower end but as always the expectation should always be that we […]
September 30th Biotech Update
We are at a place where we should bounce and we did get a nice little rally to start the morning (after starting lower). Ideally that should be built upon today and later in the week. The goal would obviously be to put in a higher low and then use that move to a higher […]
September 24th Biotech Update
We are hanging out at levels that should be support. Perhaps the Chinese stimulus will be a risk on sort of trigger that is enough to keep the sector above the support. I do not think that we need to accelerate higher but simply bounce from these levels even if it is a slow grind […]
August 7th Biotech Update
I sort of wonder if we have tested support with the recent selling and now are going to move higher. While the selling was related to fears over the economy, I also read that a large portion could be related to the surprise rate high in Japan that setoff a large unwinding of the Japanese […]
April 26th Biotech Update
Well, I sort of do not want to be a broken record on the macro and its effect on the sector. It is what it is and we all know it. We are at the start of large cap earning season and so I would prefer to focus on the fundamentals and the broader market […]
February 14th Biotech Update
Just when you think rates and inflation no longer matter as much to the sector and market they come back from the dead. Whether this is a one off event or something that matter longer term is still not known. We have not really broken support in any way and so we can still look […]
January 16th Biotech Update
JPM is over and it was an OK conference. It was not the best with deals but there was a big group right before the conference and so all in it was a hefty amount of deals. The conference appeared one of the more upbeat in recent years and that bodes well. I think we […]
November 7th Biotech Update
It was not the best of Mondays but given the strength of last week, we were bound for a pullback. That being said, we are at a precarious point in that we hit resistance and pulled back. So in some ways this looks quite natural to pullback at this area but it also does leave […]
October 27th Biotech Update
It has been a mixed week. I could certainly have seen it play out better but I have certainly seen worse. As they say bottoming is a process and as long as we have not broken to lower lows, we could be in that process. Of course, resetting oversold conditions for another leg lower is […]
September 29th Biotech Update
We ended down yesterday but I actually find the trading encouraging. There was a big move down early in the day and we spent the rest of the trading day grinding higher. We still ended lower but we had one hour of selling and the rest of the day was buying. If we can continue […]
August 24th Biotech Update
We got up to $80 on the XBI and it looks more and more like it was resistance and setting up as a lower high. The question is now whether we end up setting a lower low and if so (as I think is likely) will it take us down to that 52-week low level? […]
August 11th Biotech Update
Have we hit a bottom? There seems to have been a clear bounce from a level that looks like it could be support but there also seems to be a clear downtrend with lower lows and lower highs. So this little bounce is good but it needs to get above $85 before we can relax […]
July 28th Biotech Update
Finally a little bit of traction in the sector and it could be a little relief rally or it could be news related. It is absolutely critical that this is more than an early morning rally that loses steam and we end up red. We are at an area where a lower low is possible […]
July 26th Biotech Update
Not really an inspiring week for the sector so far. The broader sector continues to muddle where we really need some excitement and momentum. I still think we in potential trouble when the broader market corrects. Perhaps we somehow get money when the broader market corrects but we generally go down even more when the […]
July 25th Biotech Update
The sector has me worried a little as it is holding up but cannot follow the market higher. There has been real strength in the broader market but the sector has barely been able to eke out anything. What happens when we get a broader market correction? In some ways, the sector is perhaps next […]
July 7th Biotech Update
The sector is in a tenuous position and yesterday did not help. In some ways it looked like we broke down below the support but given how we climbed back and got a lot of the losses back saved a little. If we can end strong and continue the late day momentum, then yesterday could […]
June 12th Biotech Update
We are trying to break out. The sector made a run at the $90 level yesterday but was unable to break out. Perhaps the continued cooling of the CPI numbers will be a macro push that the sector needed. With inflation looking to have peaked and likely meaning the end of the Fed hike cycle, […]
May 15th Biotech Update
A strong start to the week, which is good as there is not a ton of news to be driving the move. We did end the week with some good news but it is a relatively quiet start and the move higher bodes well. I often like to see how the sector trades without news […]
May the 4th Biotech Update Be With You
We seem to be finally breaking out of the range especially if the broader market can at least hold up. The news continues to be good for the sector and that seems to be bring more investors and interest. As long as these new investors can make money there should be a nice momentum that […]
