The sector remains in a precarious position, which is nothing new. ISI had a call yesterday with its technician and the overwhelming view on most of the stocks was that they are at a decision point- the short term chart does not look great but they are at long term support. He tended to lean […]
March 9 Biotech Update
Yesterday was certainly a blast from the past with small caps getting crushed and large caps outperforming but only because they are down less than SMID. After the recent run it is not surprising that the run pauses and reverses at resistance. As one could imagine the bears will highlight this as the start of […]
February 19 Biotech Update
We are getting the pullback after that quick rip your face off rally and so now is the real moment of truth. Did the rally simply reset the relative strength to allow another leg lower or will buyers step in and buy this pullback? As I noted before there is no way of knowing and […]
February 12 Biotech Update
The market remains crazy and the sector is filled with odd moves. Yesterday seemed to be a good day of outperformance for the large caps and today they are red while the market is green. There were some good movers in SMID yesterday and today but not a real rhyme or reason for who outperforms […]
January 28 Biotech Update
The market and sector did not like the FOMC decision or perhaps the wording of the decision. The sector remains in a precarious position. It has already fallen a lot but it remains at critical long term trend lines and if they break we could only be halfway through the decline. There was some talk […]
January 4 Biotech Update
Well, 2016 is not off to the best of starts and I am of two minds when it comes to the market. First, there are not a lot of reasons to be excited. Earnings will be poor and macro does not seem conducive with China continuing to weaken. So what will be the catalysts that […]
December 30 Biotech Update
Nothing newsworthy for the sector has happened in the past day. We had a nice rally the other day and perhaps that continues with a positive bias into the end of the year as investors and traders finish up the year but with volumes drying up it is really a toss-up how it will trade. […]
November 13 Biotech Update
It has been a tough couple of days with pretty broad weakness but we will see how we end the week as many stocks have had a decent run so a pause is not unexpected (or bearish- yet). I am still not convinced the rallies have not been short covering and if we are to […]
October 28 Biotech Update
The sector seems to be getting its feet but unevenly and in fits and starts. It looks like the large caps are probably the most consistent outperformers with some strong SMID names but as a group it is much more mixed. We continue to be in earnings seasons and likely explains the outperformance of the […]
September 28 Biotech Update
The market has been ugly and rough and at times like this you simply want to throw up your hands and walk away but this is where values develop, so it is worth staying engaged even if we are not at the bottom. I think it is a legitimate question as to whether we are […]
September 21 Biotech Update
Another slow news start to the week. The market background seems better but with a lack of real news/catalysts, the sector is likely we trade in line with market. It will be interesting to see how the sector trades with a lack of news as it may give us at least some sense as to […]
September 18 Biotech Update
The market supposedly got what it wanted (no hike) but looks like it wants to sell that news. As I said before the meeting, I have no confidence in terms of the next move of the market and if I were to explain the less than enthusiastic reaction, then I would lean towards a disappoint […]
September 14 Biotech Update
Talk about a slow start to the week. Nothing really new, which probably means all eyes will remain on the Fed. I have no idea whether the Fed is going to raise rates or not or whether the market moves higher or lower if the rates are raised or not. In some ways, the best […]
September 11 Biotech Update
Macro seems to be slowly fading into the background but note that I said slowly as it will likely take more time and it should remain meaningful in the short term. Of course, fading into the background does not mean all is clear for the next move higher as I read the market as simply […]
September 8 Biotech Update
I expected a more active Tuesday but perhaps all of the deals are taking a little longer to finalize. In fact, we have a pretty quiet morning which is going to once again push macro into the forefront (which at least appears to be good this morning but we usually see these opening moves fade). […]
July 28 Biotech Update
The sector looked like it would be off to a good start but it faded quickly. I would still argue that any movement before the GILD earnings can be quickly changed, so the trading action tomorrow is much more important than anything today. Not a ton of major news but a decent amount of tidbits, […]
July 24 Biotech Update
Unlike earlier this week where bad news was shrugged off, it looks like we are going to see selling on the bad news. This pullback should eventually generate nice bargains if it picks up steam but it might not be an immediate buy the dip as earning have been relatively mixed, so money may be […]
July 23 Biotech Update
A good start to the day with earnings almost universally beats and raises. Given the strength the sector showed yesterday, this should move the group higher and increase expectations for those companies that have not yet reported but perhaps we are in an opposite mode and will sell good news and buy bad. 1. BMY […]
July 20 Biotech Update
There is some news this morning but nothing that in and of itself is likely to move the sector. On the other hand, the news has generally been positive, so there is nothing to change the momentum to the upside. It is nice to see a week begin without a major macro discussion. Perhaps this […]
June 9 Biotech Update
The market continues to sell off with biotechs seemingly able to levitate but still weak this morning. Either the market is going to reverse in the near term or it is going to take biotech down with it in a large move lower. At least in the very near term, I think the market is […]
