Perhaps we are in the calm before the storm or people are still recovering from their Thanksgiving meals but the sector is off to a slow start to the week. Trading last week was not too bad even it was on low volume. We have one last potential catalyst this year with ASH coming soon […]
November 10 Biotech Update
We have our answer to what the sector wants to do as the number of large moves higher by the odd stock is over and the large days down continue. It certainly looks like the series of large positive moves were masking a much broader weakness as the trend now is to sell every SMID […]
November 6 Biotech Update
Sort of a quiet start to the week, which is good and bad. Ideally, we would like to see some nice fundamental news to start the week but given the lack of news and flat broader markets, it might give us a sense of the underlying bid (or offer) in the sector. At this point, […]
October 6 Biotech Update
News continues to be a little slow but there are some companies that I want to follow up on given some discussions that have been percolating. In general, the sector continues to look good if not overstretched to the upside but as I noted before there is little reason to think that any pullback would […]
October 4 Biotech Update
We got some news to talk about today and it just so happens to be some good news and some bad news. In both cases, the news is specific enough to a stock that I doubt either would have broader implications, which means the sector will continue its longer term trend higher (with obvious peaks […]
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 […]
August 16 Biotech Update
The recovery continues as risk-on seems to be heading back into the market. Part of me sees this as what I expected in terms of a sell off to test the break out, the previous resistance holding as support, and now we continue higher. The other part of me sees a wall of worry that […]
August 9 Biotech Update
The sector weakness continues but is still doing so on the back of good fundamental news. Of course, all the news has not been positive but we are seeing beats, beats and raises, and positive data reports much more than misses, guidedowns, and negative data. Despite this positive backdrop there is continued weakness and partly […]
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 […]
April 12 Biotech Update
Nothing has changed really in terms of politics. There is still talk coming out of Washington about health care reform not being dead and I do think they are still trying. The problem facing Trump is that without the savings from health care reform, the tax cuts in tax reform explode the deficit. In other […]
February 7 Biotech Update
The sector (and I guess you could argue the market in general) has been pretty dull the past couple of days. During the past year these periods of no news led to a slow grind lower but it seems that the sector is holding up well if not grinding a little higher. It is only […]
August 24 Biotech Update
Sector is doing well in essentially a flat market, although volumes generally remain low. It is the summer doldrums so the sector is not unique for low volumes. We have some interesting news to talk about and while I am not sure they are moving the sector, they certainly could be contributing. 1. CLVS reported […]
July 28 Biotech Update
It is a mixed bag today in terms of stock reactions but the actual numbers continue to be good. I am not exactly sure why some stocks are reacting better than others but I will take a stab at it. In any case, it is hard to argue that the fundamentals of the sector do […]
July 18 Biotech Update
Looking around there is really not a ton of sector news. The market is flat which could be considered a win given the Turkey coup attempt Friday but in terms of sector moving data or events, there is really nothing going on. It is a little interesting that we have had a dearth of mergers […]
July 13 Biotech Update
The market continued its strength (even if we dipped red for a second today). If you remember in the lead up to the BREXT vote the cash balance sheets for institutional investors were very high. With the market running after BREXIT you are getting buying panics as the buying dips have not appeared. In addition, […]
July 12 Biotech Update
The market and sector continue to do well. At least in terms of the macro market, we are back in the pattern where the most likely path of a market making new highs is to make marginal new highs. Obviously the biotech sector is not in that pattern even if we are moving with the […]
June 3 Biotech Update
Not much in terms of news to end the week as we head into ASCO. The jobs report may make this a macro day sell off (although if you dig into the jobs report the big miss seems to be driven entirely by the Verizon strike, so when that ends this should completely reverse). In […]
June 2 Biotech Update
I missed a day but not much happened. The sector continues to do well and it seems to be slowly turning sentiment around. The one negative (or perhaps positive) is that the ISI traders noted that there is still not buying demand and the move seems to be driven by a lack of sellers and […]
May 31 Biotech Update
So we got a little takeover Tuesday but not the mega deals that would have been transformative. I think we are at the point that we likely needed a deal after the long weekend to keep the momentum going. This is not to say we need deals every week but I suspect it would have […]
May 19 Biotech Update
The sector did well the other day especially given the weakness in the broader markets. We have, however, seen this before and last time the sector grossly underperformed once the broader markets recovered. So while it is good to see the relative strength and hopefully it continues, it also needs to last more than a […]
