Hopefully we are on the verge of breaking out and it would be a nice end to the week to see a clear move higher above the range. I still think we really need to see more M&A to really create a clean breakout but I think the expectations seems to be that that is […]
September 17th Biotech Update
The sector is doing well and I think we are setting up for another strong Q4 (which seems a lot like last year, where got a nice strong move higher to end the year). I think the interest rates are going to now be a tailwind but more importantly, I think we are going to […]
August 22nd Biotech Update
I suspected that we would have paused this week but the sector has had a nice continuation this week despite hitting what I thought would have been natural resistance. That is a nice sign of strength but I still think the sector is a little extended in the immediate term and likely needs a to […]
July 12th Biotech Update
It has been a really good week. If you look at the chart, one could make a compelling case that we are breaking out of that range. I would not have predicted this was the week in which that would happen but it looks good. If I were writing the ideal script we would extend […]
June 17th Biotech Update
It was not the best end to the week but taking a step back and looking at the sector, it does not look bad. There seems to be a little trend forming and assuming that we can bounce and move higher this week, it will strengthen that look in the chart. We are in a […]
February 5th Biotech Update
I would not say that we are at the end of the chop for the sector but are probably closer to the end than the beginning. I saw some notes that blamed the lack of rate cuts on the market but I am not sure that is the issue. It is true that rates remain […]
January 26th Biotech Update
The sector is bouncing along and while it is underperforming the broader markets, I still see it as digesting the large move at the end of last year. I think this is how the sector works. A long period of underperformance followed by a short burst of large outperformance. It would be less stressful to […]
January 22nd Biotech Update
My call of post-JPM weakness has been accurate and while expected, it is not a great feeling especially with the broader market doing so well. I think we are in a zone where we could find some support, but I am not convinced that this is the level from which we bounce. The post-JPM weakness […]
December 28th Biotech Update
The sector remains strong. It feels good to be talking about the continued strength longer than one would have expected. I would still be cautious about new positions as the chart looks a little stretched. I do not think we are anywhere near the end of this bull market, but all bull markets need time […]
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 […]
November 1st Biotech Update
The best sign for the overall market was the reversal on a day in which the SMID space could have been hammered by the SRPT news. The sector started lower but then recovered to end solidly green. That is a strong signal as to the overall health of the sector. That is not to say […]
September 25th Biotech Update
I think teetering is the word I would use to describe the sector. While a lot of the poor performance is sector related, I see this as more of a broader market issue with risk off hitting the whole market and that impacts the sector as being a risky sector. We have both interest rates […]
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 […]
June 21st Biotech Update
The trading did not start well but it ended up fine. That is quite important. We are at an area that should act as support (at least somewhere around these levels) and so not falling any further is not more important that moving higher, but it certainly is up there. It was good that we […]
June 16th Biotech Update
We are still close and trying. We did not make a run to the upper level and pull back to the $90 but did make a little move lower to the $88 level. It looks like it is support at this point and it reset the chart, which might have setup a move above $90. […]
June 12th Biotech Update
There is a lot to catch up on the past week and rather than go through everything quickly in one day, I sort of want to take my time and review what I thought was most interesting. I think the sector is not necessarily in a bad spot and if we could find a way […]
May 31st Biotech Update
Yesterday was not great or at least it did not feel great. It looked as if we would have a nice little bounce but ended up red again. Stepping back, however, we are not in an awful position as long as we do not break below the recent lows. There seems to be some support […]
May 18th Biotech Update
The FTC news with AMGN and HZNP was an awful way to start the week but in all honesty, the sector seems to have held up. The green day yesterday could be setting up a higher low, which assumes we make a higher high. I would not say the all clear has been signaled but […]
May 16th Biotech Update
The sector absolutely cannot catch a break. Everything was looking good and solid and now the proverbial rug has been pulled out. There is no recovering today. It will be red but the broader move is not done (at least it does not have to be). I think as long as this pullback stays above […]
May 12th Biotech Update
While I thought we could have made a little push higher before the chart resets itself, it looks like we are in the midst of a pullback. I think anything into the $83 range would be reasonable in the context of a bull market pullback. Anything that moves lower than that would raise some questions […]
