While my idea that steady rates would provide some room for the sector to recover and potentially move higher is not quite working out. Steady rates are not bad for the sector but I still think there are worries about the rate environment and perhaps we need to see a little more confidence that inflation […]
December 21st Biotech Update
Not the best day for the sector as trading slows down closer to the holidays. I had been thinking we pullback further but even a 1% decline basically keeps us in this sideways range and then the afternoon happened. It was not clear why the market suddenly decided to correct through price, but I was […]
December 1st Biotech Update
We the news that we needed to really push the sector higher with a large oncology deal. Now the move is good to see and certainly adds some nice momentum to the sector but ideally we would want that to last a couple of days. One day spike higher and then giving it back over […]
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 […]
August 11th Biotech Update
Have we hit a bottom? There seems to have been a clear bounce from a level that looks like it could be support but there also seems to be a clear downtrend with lower lows and lower highs. So this little bounce is good but it needs to get above $85 before we can relax […]
March 27th Biotech Update
Last week ended on a good note that has so far continued. We need a lot more than a couple day bounce to persuade anyone that the tide has changed but it is a start. We re probably starting a rally to the $78 area on the XBI but that really is likely the next […]
March 16th Biotech Update
The banking crisis continues as CS looks to be the latest bank in the crosshairs. To be fair, there seems to have been questions around CS for years and so it is not necessarily something new but it obviously has become acute. I think it is difficult to see CS going under as one of […]
March 14th Biotech Update
Inflation came within expectations (with expectations that it continues to slowly cool although it still remains high). I think the 50 bps hike is completely off the table at this point and I would lean towards a pause over the 25 bps hike. I am not as aggressive in thinking that the Fed pauses but […]
March 13th Biotech Update
Quite the start to the week and it would be quite disappointing if all the news does not get at least a snap back rally in the sector but there are a lot of moving parts. We have both major macro news as well as sector (and portfolio) news and I will cover them on […]
March 9th Biotech Update
I feel like we are in déjà vu all over again. This year feels like last year where the sector underperforms when the market is weak and underperforms when it is strong. Good news provides only a momentary boost only to be given back and bad news is punished severely. All that being said we […]
February 15th Biotech Update
It is not the best start so far to the week but it certainly is not bad. We still have the chance to rally and I am a little encouraged by the market reaction to the hotter than expected CPI numbers. It seems to me more signals that inflation and the Fed are losing their […]
July 12th Biotech Update
No real news to start the week the juice the sector and so far we have simply followed the broader market lower. This could/should be the pullback that refreshes as we have had a nice run higher and a pullback to the $78 level makes sense. Of course that needs to hold and we need […]
May 9th Biotech Update
The sector continues to be a complete mess along with the broader market. We are at multi-year lows and this move lower has been relentless. I am sounding like a broken record but this has to see a dead cat bounce at some point. Of course, the one thing the sector has not done is […]
November 3nd Biotech Update
The sector seems to be building some momentum (dare I say) but I guess it shows how low expectations were that two strong days in a row seems like such an accomplishment. We did get a drug price proposal in the bills in congress but it is a win for the sector. It allows […]
September 16th Biotech Update
A very sloppy start for the sector but this could end up being a good signal but that would require a red to green day. We started yesterday lower as well but reversed to end higher. If we get two days in a row of red to green reversals that seem to establish a higher […]
September 8th Biotech Update
Not a great start to the week with no additional M&A to juice the sector and the news that has come out has not been that great. It seems inevitable that we are going to get that pullback given the lack of deals and negative news flow and so the question is how much of […]
July 30th Biotech Update
Unfortunately we were unable to string together some momentum for the sector. It could have be worse but ideally we would have built on some of our earlier strength this week as opposed to bounce around with some weakness mixed with the strength. It is not surprising given the downtrend we have established but there […]
June 25th Biotech Update
The sector might be getting some momentum and working its way to the $142 level in the near term. I think we need to at least get to that level (which I think is likely) and ideally make a move above it (possible). I think if you stare closely enough at the chart you could […]
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 17th Biotech Update
Not a lot going on in the sector, which makes it a little tough to write about but it does provide a way to figure out the underlying sentiment. Of course, it seems like the underlying sentiment is basically flat. Not much movement one way or the other so we are in a low volume […]
