We got a lot of ASCO data to sort through as well as stock reactions. It is going to take awhile just to look through all the data and probably weeks for the sector to digest all the news. I doubt we will see the data move the sector out of its range but sometimes […]
May 15th Biotech Update
It seems a fight/indecision in the sector right now. It remains right at the breakout level unable to move higher to confirm the breakout or move lower to reinforce the level as resistance. It still seems to be doing modestly better than the broader markets but there seems clear indecision at this level and at […]
May 14th Biotech Update
So we are in the pullback to the breakout levels and the sector has some decision making to do. Either this level holds and we confirm the breakout or we make our way lower and the “breakout” looks like a blow off top. A breakdown would not be a great signal (obviously) but this would […]
May 12th Biotech Update
We had our breakout and run yesterday and while there is little follow through today, I suspect that we get a continuation. It appears that the breakout is happening but the confirmation still needs to occur. The final signal would be to test the old resistance level with a selloff and to rally off the […]
May 17th Biotech Update
We remain in a macro driven market even as the ASCO abstracts dropped this week. There were some interesting data that came out of the abstracts but certainly nothing so compelling to move the sector especially against this macro backdrop. At some point, the China trade wars issue will be priced into the market and […]
February 6 Biotech Update
The sector faded yesterday and seems to be in a little range between $80 and $86. This is not necessarily a bad thing after the big bounce we had. Sitting in this range resetting the chart and building a base of support is not bad for the longer term. It is certainly better than charging […]
January 7 Biotech Update
A much better market today than the past couple of days. Over the near term I suspect the market is set up for a fairly significant bounce. Of course, the normal caveats all apply and we need to see follow through this afternoon but my base case is a nice recovery for the market which […]
December 23 Biotech Update
The sector is certainly having problems. As I noted yesterday, you should be biased towards raising cash (and going short if you are interested in running more of a market neutral book). Even ABBV who is the hep-C “winner” cannot catch a bid as the market is reasonably discounting not the fact that ABBV will […]
December 22 Biotech Update
It was a weak start to the sector and I suspect that may be a popular start to these notes as the sector seems to have lost some control of pricing power. I am going to spend today talking about the ABBV/ESRX deal as it has significant implications not over for the hep-C market but […]
