March 25 Biotech Update

A rough start to morning for the sector with a biotech bubble article in the WSJ not helping. There was nothing new but the headline is the headline (it also had some odd numbers like CELG P/E over 50, which is much higher than the numbers I usually see when calculating CELG P/E). Of course, […]

March 18 Biotech Update

Some early weakness but I also suspect today is going to be fairly volatile with the Fed weighing in later this afternoon. So I am really not going to read anything into the price action this morning and even less into the price action in the sector after the announcement. Given how close people think […]

March 17 Biotech Update

The market is weak but the biotech sector is showing good strength. The large caps seem to be holding up their end of the bargain, which bodes well for this move. I do wonder when the new leg down in oil prices hits the broader market. It seems to be handling it well but if […]

March 16 Biotech Update

A good start to the week with a new all-time high in the IBB but I still want to see how the large caps perform in the afternoon. The pattern seems to be early strength followed by weakness in the afternoon but maybe this time is different. Of course, SMIDs seem to have strength early […]

February 9 Biotech Update

A good start to the week with the markets a little week but the sector outperforming. This is not totally surprising given the underperformance last week in that there should be some sort of bounce back. It is certainly positive to see but I wonder about of the staying power and whether this is simply […]

February 3 Biotech Update

It has been a bad start to the week for sure. The macro is getting better and biotechs are significantly worse. We are treading into very dangerous waters. Catalysts are going to slow dramatically. The market has to digest a lot of secondaries. And headlines out of Washington are putting pricing once again into the […]

December 5 Biotech Update

Another day and another morning with an opening spike in large cap biotechs that was immediately sold. This is a disturbing pattern and one that needs to break if the sector is going to continue to move higher. Until we can get follow through on these opening moves, we are going to at best treat […]

November 17 Biotech Update

This morning was just a little bit busy. The market was neutral, which gives us a nice clean way to see how the biotechs are reacting to news. In general, it appears that good news is still moving stocks higher, although some of the moves were more muted than you would expect. In any case, […]

November 12 Biotech Update

A weaker start to the day today but I still see this as the market treading water as opposed to a new trend. I certainly would keep an eye on the action of the small caps as they have been an early warning signal and they too seem to be treading water with some winners […]

October 16 Biotech Update

The market continues its weakness but I am certainly encouraged that small caps are out performing. They were an early signal on the way down and so are potentially an early signal on the way back up. Of course, it could just be funds who were short are raising cash but I am not convinced […]

October 10 Biotech Update

I am still not convinced that the market is done correcting. Even if we have another rip roaring rally, it just seems like the path of least resistance over the near term is lower. In fact, I would not be surprised if we are not beginning the long awaited 10% correction. If that is the […]

October 8

It was basically a neutral open in the market this morning with more green than red. While I would certainly prefer a market ripping higher, it seems like a sharp short covering rally is not going to halt the down trend. A slow grind higher as buyers enter the market seems better but after the […]