The sector looked like it was going to have a nice continuation day yesterday but the afternoon ended up being a mess. It is nice to see that it is not continued into this morning but we really do not want to start the pattern of green in the morning only to reverse later in […]
April 15th Biotech Update
Well, today is a day where we should have turned off the alarmed, rolled over in bed, and went back to sleep. Certainly not a good start after what was a pretty strong Tuesday. Nothing has really changed fundamentally, so it seems investors are trying to figure out where the next move will and pile […]
February 25 Biotech Update
Today will be interesting for the markets. As I noted, the market has trained most to buy the dips and big sell-offs are followed by new highs. The gap up this morning could all but confirm that we are no longer in that type of market. If the gap turns into a gap and go, […]
January 7 Biotech Update
We remain in the calm before the storm (perhaps both macro and in terms of JPM). I still think the market is underestimating possible Iranian responses and seems to be slightly exhaling in that nothing has happened yet. I too have felt that relaxation but I still cannot believe that Iran would allow the assassination […]
December 17th Biotech Update
It seems like we are getting into the slow part of the holiday season. News is slowing down as is the trading volume. I suspect we get less and less news as it gets held for JPM (if possible). It would not necessarily be bad for the sector to churn at these levels to build […]
December 4th Biotech Update
The sector struggled a little and the momentum seems to have paused but we remain squarely within the uptrend. Of course, yesterday saw a ton of secondaries (the most I have seen in a day in a long time) and these tend to occur near the top of a range and not the bottom. It […]
December 3rd Biotech Update
The broader market backdrop is not nearly as positive with some China fears creeping into the market but the sector remains strong. I still think the stock reactions to ASH data this weekend will go a long way in signaling expectations and whether they have become extended. So for me I will be watching not […]
December 2nd Biotech Update
The sector remains strong and we have ASH coming so we could see a run in some names this week. Given the recent strength and the potential run-up (uptrends are prime run-up candidates), I would not be surprised to see a sell the news reaction on ASH data. Expectations are growing with the valuations and […]
October 29 Biotech Update
There is nothing that should stop the sector from running higher. Fundamentals look good and it has perhaps the best set of earnings among all sector this quarter. Of course, what it should do and what it does do not always correlate. Sentiment is still negative and could hold it down but fundamentals look good. […]
September 23 Biotech Update
Again another slow start to a week. We did survive the weekend without the macro getting worse. I am still not convinced we are out of the woods on the Middle East yet but for now it seems to have faded into the background. It is hard to predict when it will come to the […]
August 8 Biotech Update
What macro brings down macro can bring up. The sector seems to be trading right in line with the broader markets but hopefully we see some acceleration of the sector given the positive news that needs to be digested. 1. SRPT is lower on the earnings release. The revenues were fine and in line. SRPT […]
August 2 Biotech Update
So it looked like yesterday was the day that all the good news was finally going to push the sector higher and we get the China tariffs macro news. Clearly the sector cannot catch a break and all of this good news now runs the risk of being buried in macro issues. There is still […]
July 26 Biotech Update
The market seems odd to me. Earnings so far have been good and the individual stocks are going higher on the earnings and holding onto the gains. The rest of the sector is struggling. Usually earnings will drive the sector higher or lower and rarely do you see good earnings with these many large caps […]
June 17 Biotech Update
It is a good start to the week with merger Monday coming back the sector albeit with names we were not expecting. The XBI has been in a nice tight range and while we are still in that range this morning, I would look for a breakout about $84. I am not exactly calling for […]
April 2nd Biotech Update
The sector seems to be setting up for a breakout(down). Since the gap higher in late February, it looks like we are getting higher lows and lower highs. The range is narrowing and we should soon be breaking out of the narrowing range and that is going to generate the next significant move. I still […]
January 9 Biotech Update
The sector move seems to be losing some steam. This is not unexpected nor bad as these overbought conditions need to be reset. The real key going forward is not how much further this move can stretch higher but whether or not we can form a lower high. That will be absolutely key as a […]
January 3 Biotech Update
Holy crap, BMY is buying CELG. This is one hell of a way to start the XLRN is aNew Year and JPM week. It is unfortunate for the sector that the broader markets are so weak otherwise this would likely have had a bigger positive impact. Hopefully the AAPL related weakness is fleeting and we […]
November 19 Biotech Update
This should be a relatively slow week but with ASH late breaking abstracts coming out later, it might not be completely devoid of news. There is a little more hope for the sector than the middle of last week. We have had a couple of strong days, although one could argue this has just brought […]
November 1 Biotech Update
Yesterday I wondered if the sector was bottoming and evidence is building that we are bottoming. We still need to string some green days together and see stocks react positively to good news (and hold those gains). I certainly would not bet the farm that the bottom is in but it is more encouraging and […]
October 31 Biotech Update
Is the sector starting to bottom? It certainly does not feel like it as every gain is followed by more selling. No move higher seems to have any staying power. Positive starts to the day are sold by the end of the day. All that being said bottom and tops looks so clear in hindsight […]
