Not a bad week nor a great week for the sector. It would have been nice to see the sector set a new high but we did get a nice bounce from support. The XBI is going to be interesting to follow going forward because they have changed the composition to have more large caps. […]
June 10th Biotech Update
Keeping on the theme of griding we continue to work through the ASCO and other data. The sector is still going to be linked to rates and the Fed but given that we are not in a place for rates to go down, we are looking likely to grind away at these levels. I thought […]
June 3rd Biotech Update
We are sort of hanging out at these levels. Perhaps we have a modest little downtrend but I sort of see the sector more in a holding pattern more than anything else. I know we are waiting for inflation and rates to move down and our expectations are that it helps the sector. What if […]
April 18th Biotech Update
Would you believe it if I said another day and another buyout with a large premium? I think the lack of M&A had been blamed for some of the previous years of underperforming for the sector and I believe that was a fair point. That is certainly not the case this year. While the sector […]
January 18th Biotech Update
Not the best start to the week but to be honest, it is not surprising that we get some weakness as we were stretched to the top of the trading range. I still would not rule out of break this week but the chart probably needed to reset the overbought conditions in the near term. […]
November 22nd Biotech Update
Not the greatest start to the week but I have a hard time reading too much into this week’s trading. I did notice that large caps outperformed SMID and that has been my theme for a little bit. I still think investors come back into biotech first through large caps and in some ways the […]
October 5th Biotech Update
Apparently all I need to do is put out a cautious note and the market takes off. I am going to goose the market even more as I am still not convinced we are out of the woods. I do not see us at the end of the interest rate hikes and the Fed wants […]
September 19th Biotech Update
A slow start to the week but unfortunately not a good start to the sector. We are at a critical area as I think the $80 level needs to hold on the XBI to limit the potential for a clear breakdown. This has been support and resistance and a break below would not be a […]
April 13th Biotech Update
We had a chance to build some nice momentum and yet we failed once again. To be fair the broader markets have not been that conducive so it is not as if this is a sector specific move but it is yet another disappointment in a long line of disappointments. The sector can still save […]
January 18th Biotech Update
So it looked really bad last Friday and it was quite the comeback rally. Unfortunately it seems like the broader market is not looking very good and I cannot imagine a scenario with a broader market/risk off move and the sector somehow moves higher. I guess one can never say never but it seems exceptionally […]
December 7th Biotech Update
So we did not have a bad day yesterday, although that only really is true if you look at the absolute performance and not the relative performance. That being said it was still better than what we have seen recently. We are set for a green start to the day and have some positive news […]
June 23rd Biotech Update
Listless. That might not be the right word but that is how the sector feels. On a given day it does not feel that way as the daily moves seem like there is some conviction behind them but the daily moves do not seem connected and do not seem to follow through from one day […]
June 14th Biotech Update
Well, we do not have any buyouts but there is some partnership news. I am not sure that will be enough to juice the sector but it is likely enough to continue the momentum to the $140/$141 level in the XBI. Assuming we make it there, there should be some sort of pause/pullback to reset […]
December 17th Biotech Update
I am a little surprised at the lack of follow through after Monday. I expected the potential of a small retracement but then strength to return to the sector. I am not willing to say the trading is indicating a near term top is in for the sector as we are still in a seasonally […]
January 27 Biotech Update
We are heading into a perfect storm for weakness, so stay nimble and/or hedged. The sector has had a nice run and was overbought. We had an uneventful JPM and are set for a series of post-JPM secondaries. The broader market is going to be weak given growing pandemic fears (and the real impact it […]
February 5 Biotech Update
There might be reason for optimism in the sector. The XBI seems to be breaking above its recent range and the $80 level might have been support for this new move. That would certainly be the best case scenario as it would be a higher low ($80) and one that is a little higher than […]
February 1st Biotech Update
The sector seems to have gotten its footing in a way I was not expecting. Perhaps there is a bigger underlying bid than I thought. Perhaps the dovish turn in the Fed has put risk on again. In either case, it looks like $80 on the XBI acted as support and now the question is […]
December 3 Biotech Update
It is certainly a great start to the week with generally good news from ASH, merger Monday, and easing trade tensions. If we do not get a gap and run with this news, then we are in trouble. I suspect this will be a multi-day move (or at least it should be on this news). […]
February 14 Biotech Update
Some decent news this morning for the sector but not quite a robust reaction. Perhaps the sector needs to pause after its recent run or perhaps it will rally later but I would have expected a little more follow through. It is still early and regardless of the price action the sector needs to continue […]
October 3 Biotech Update
Not the best start to the week for the market or sector but there really seems to be little conviction on this move. So we meander lower and the sector moves with the broader market. I think the market it getting closer to its next big move as we are closing in on four months […]
