We certainly seem to be moving away from the macro concerns to more sector specific issues, which is good to finally see. Of course, we are only one news cycle away from the macro driving the sector again but for now it seems like the sector survived and seems to be doing well. 1. BPMC […]
April 16 Biotech Update
We had the Syrian strikes over the weekend and for all intents and purposes it was typically political theater, which makes it enough for all sides to declare victory and move on. Perhaps there will be further consequences in the future but for now it is unlikely to be a significant macro worry for the […]
April 4 Biotech Update
The market is a volatility machine. We went so long without any real volatility and now all we have a whiplash moves. In periods of these, the goal is to trade less (at least for those with a longer term view). Let the valuations come to you and do not worry about the swings. It […]
March 21 Biotech Update
You would think the sector would have given us some more clarity by now but it still seems on the verge of breaking out or breaking down. The XBI could have put in a double top or is setting up a cup and handle pattern. Sentiment is not great as the reaction to Trump’s talk […]
March 15 Biotech Update
We might be seeing a little of the broadening rally that I talked about as the XBI seems to be modestly underperforming the IBB the past couple days. The move in the sector was mainly concentrated in the XBI (more heavily weighted towards the SMID) versus the IBB (more heavily weighted towards the large caps) […]
March 8 Biotech Update
Some interesting news happening in the sector that might have some pin action more broadly. In general, it seems like the broader market is getting its legs, which is likely good for the sector as it has been doing well without additional M&A (which is very likely coming this year). 1. There was a healthcare […]
March 7 Biotech Update
Macro might be a little bit of a drag on the sector today but it seems to be doing well this week despite the lack of M&A and some macro headwinds. We at least go some interesting data today, which is the focus of this report. 1. ESPR announced positive data in the first of […]
February 14 Biotech Update
It is a pretty active morning for news, so I will dive right into the events as they are pretty interesting. I am not convinced that these will be enough to break the sector out higher but they are all generally positive in the longer term. 1. The least interesting news was NBIX earnings that […]
January 31 Biotech Update
We had a nice little correction yesterday but while it was certainly a meaningful move compared to recent price action, it did not really remove any of the real fluff in the sector. That being said it could be enough to reset the “over bought” conditions and lead to a continuation of the rally. While […]
January 24 Biotech Update
The animal spirits are back. This is the third day of the move, which usually signals a time for consolidation or pause but we are also just starting some important biotech earnings. Assuming nothing surprising happens, a pause is most likely in the immediate term but the move could also be re-energized if more deals […]
December 4 Biotech Update
The sector is tied to macro but given the macro events (tax bill status and Flynn flipping) it is not surprising to see this. Ultimately, it is more likely that the fate of the tax bill will drive the market even if longer term the Flynn news might be more impactful but it is more […]
November 17 Biotech Update
We had a decent bounce yesterday and perhaps we will get a continuation. The sector is over sold as are a bunch of individual names. I am not convinced the bounce is the end of the selling but there were some names that I bought as even if this is not the bottom they are […]
November 15 Biotech Update
The sector continues to struggle and at least today we can blame the larger macro market but the fact is if the markets in general are going to correct, the sector is not going to hold up. I would not mind a broader correction as it likely would be the last leg in the biotech […]
November 3 Biotech Update
The sector is just odd. If you look at the broader averages they have been pretty flat this week but under the surface there has been and continues to be massive moves. Everyday it seems like there is a new set off stocks up double digits and more double digits lower. After last week of […]
September 28 Biotech Update
The sector continues to grind along with a good day yesterday more or less signaling that the AXON news was taken as a stock specific event as opposed to a sector wide problem. That makes logical sense but is also something that occurs in bull markets. During the bio-bear market that would have crushed the […]
September 25 Biotech Update
We did not get any big news to start the week even though I think many were expecting to see a PR from AXON to start the morning. This is likely to be another one of those trend days where the sector generally follows the broader market but perhaps with a little more strength as […]
September 13 Biotech Update
The sector in general appears to be treading water at these levels but that seems to belie the larger moves under the surface. I think keeping these levels and having good news rewarded and bad news punished is a sign of the relatively healthy sector, especially heading into historically risky months for the market. 1. […]
August 8 Biotech Update
Another day with some news and catch up. The sector is still not doing well as we see positive individual moves that seem to have no read through other stocks. Of course, we are also getting some pretty negative news so perhaps we are simply seeing a balancing of those impacts but it seems that […]
August 4 Biotech Update
I am back from my last trip of the summer and to be honest it is going to take me the weekend to catch up on all the news. That being said there are a couple of points I can make that are essentially the frame I will use to look at the recent news. […]
June 14 Biotech Update
The trading seems to be more of the same in that the sector is modestly outperforming the market but more or less simply trading flat. There are certainly some moves under the surface but the sector writ large has more or less flatlined for about 18 months now and that has become even more obvious […]
