A weak start to the morning both in the broader market and biotech sector and this is on the back of a good day yesterday. It just reinforces the view that the market seems to have almost no memory from day to day. Luckily we have some interesting data to talk about. 1. The talk […]
November 14 Biotech Update
The markets are fine this morning but biotech is weak and seems to be led lower by GILD and other large caps. As long as GILD is weak it is going to be difficult for the sector to lead and this could eventually spill over into the broader markets. We have quickly moved from extremes […]
November 3 Biotech Update
A pretty mixed morning with no real direction in the market. I doubt that we see it trade like this for long, although the longer we do this the better as we could be correcting through time instead of price. The biotech sector is just as mixed as the broader market with no real conviction […]
October 31 Biotech Update
A strong start to the morning but this seems a lot like a short term blow off rally but we need to see how the week closes. If we can end the day near the highs then I think the rally has some more legs in the near term but a close near the lows […]
October 23 Bioech Update
The rebound is continuing with large caps continuing to lead but with good participation with the small caps, which is nice to see. It really is a little amazing to see how many V-shaped moves this market makes and how little memory it has day to day. In any case, I still think the path […]
October 20 Biotech Update
The world did not end in an Ebola pandemic this weekend nor did any economy implode, so the markets breathed a sigh of relief. We may be seeing the slow implosion of IBM but that damage seems isolated to the Dow (for now). When all is said and done it seems like a fairly neutral […]
October 2 Biotech Update
Surprise, surprise but the markets a not great (again). While we are not seeing the selling (yet), there is still not a lot of buying going on. We did get that additional move down I was expecting but I still have the sense that the path of least resistance is lower but we are probably […]
September 22 Biotech Update
The sector really seems bifurcated at this point. While the large caps have been pretty reliable winners the past couple of months, it seems like they are taking a break. Obviously, they are still close to their highs but more often than not they appear to struggle to gain and when they do the gains […]
September 17 Biotech Update
The sector rallied yesterday and seems to be trying to continue the move this morning. I think we are in no man’s land at this point as a lot of stocks are getting close to lines of resistance (for instance, GILD and CELG are both approaching the 20 day SMA). Will we pause and breakout […]
September 11 Biotech Update
The market was pretty benign but biotechs seemed to really be taking it on the chin early. There does not seem to be a strong fundamental reason for the weakness as far as I can tell (unless you think the CELG selling is creating a larger pin action), so it looks more like profit taking […]
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 […]
August 20 Biotech Update
Another slow news day with a more of the same market. What looked like a developing trend of strong small cap performance has morphed back into the run of the large caps. Perhaps that is simply a signal that we are entering into a stock pickers market as opposed to broad plays on sectors. 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 15 Biotech Update
More of the same in the market and the sector, although the large caps seem to have gotten more of a bid today with GILD breaking out yesterday and CELG threatening to do the same today. This is the first time in a little while that we have seen a strong bid in the large […]
August 14 Biotech Update
While the general trends have not changed much today, I do want to highlight one cautionary note. We are now through most earnings so that catalyst flow is going to slow and we all know that a biotech without a catalyst tends to underperform. The saving grace is that we are getting close to the […]
August 5 Biotech Update
It was an interesting morning in the market. The broader market was down but biotechs seemed to hold up pretty well but oddly it seemed like it was the small caps that did better. This is interesting because it is the large caps that tend to outperform as a flight to safety (if you can […]
August 4- Biotech Update
It was an interesting start to the week with Ebola and ASPIRE. It was strange that the sector was strong to start but seemed to hit a quick air pocket. Given how far the market has sold off, I would be very surprised not to see a bounce back this week but the market needs […]
July 31 Biotech Update
The market has certainly been pretty poor since the spike on the GDP print, which is not a great near term signal. As would be expected biotechs are following the broader market lower but not really underperforming more than one would expect for a highly volatile sector. Of course the small caps are getting hit […]
July 30 Biotech Update
The sector and market rallied nicely on the GDP but I am still not convinced that we have an all clear. It was especially disconcerting how quickly the market gave back a lot of the post GDP print gains. Of course, there are still values out there and no reason to sell and run for […]
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 […]
