What if I told you we are starting the week with slow news and no deal? Well, it is slow news but we do actually have a small deal (nothing that is nearly large enough to spark any rally but a deal nonetheless). In some ways, the fact that the sector seems to have stopped […]
May 20th Biotech Update
I sort of want to say that the sector is in no man’s land. We are not challenging key levels lower or higher and there does not seem to be a real bias one way or another. This is not necessarily a bad thing given where we have been and the struggles the sector has […]
May 17th Biotech Update
Guess what no deals in the sector. We have a big deal outside of biotech but noting much going on in biotech. I still think this reverses at some point as these companies still need to boost their pipelines and bankers need deals to get their bonuses. Of course, it is possible that the dearth […]
May 14th Biotech Update
What a weird series of days. It is like the sector is an inverse ETf with the broader markets. I really thought we would be able to move with the broader market but I guess not. I think the relationship with the broader market is like just an odd quirk and what is really more […]
May 13th Biotech Update
The sector has been doing pretty well the past couple of days and that is in light of the broader market being pretty bad. That could be good sign and ideally we need to see that outperformance to continue on days in which the broader market is green. Today could be the day to test […]
May 12th Biotech Update
Good news and bad news. The sector broke its recent lows yesterday- bad news. It reversed and ended green- good news. I think the clear downtrend is not as clear but I also do not think we are in a good spot. The $120 level should be some decent support but it seems best case […]
May 10th Biotech Update
Not a great start to the week and not a lot of reasons to explain it. There is really no big news out this morning and perhaps that is part of the issue. With the narrative and sentiment already negative a day without anything positive is going to generally be weak. The big earnings have […]
May 7th Biotech (and MLP) Update
We broke to new lows so how far will we fall? That is the natural question but it actually looks like we hit what could be pretty strong support. So is it possible that we actually bounce as opposed to collapse? If you look at the previous lower lows, they are not actually that different. […]
May 6th Biotech Update
Well, yesterday starting really good with PFE finally getting some love and the sector on decent footing but it certainly did not end well. We are now at the recent lows with odds likely favoring breaking the lows and triggering another leg lower. In some ways this is fundamentally and sentiment driven. As I noted […]
May 5th Biotech Update
I guess that is my bad for writing on a Tuesday when I usually do not write. The sector and market did not seem to like that at all, so my bad. In all seriousness, that was certainly not a good day but actually might be good. We now have a clear upside resistance level […]
May 4th Biotech Update
I usually do not have time to write on Tuesday but wanted to put out a quick note. In general, we are still in a decision area with the sector. We have broken the clear downtrend but are not out of the woods and have certainly not established a clear uptrend. In any case, I […]
May 3rd Biotech Update
Have we broken the downtrend? We are certainly in a much better position than before. We have not made a lower low and we are above what was the previous lower high. In other words, the clear downtrend is no longer that clear. We have not established a new uptrend but we are in the […]
April 30th Biotech Update
The hits keep coming for the sector. It is certainly underperforming compared to many other market sector but let us be clear. It is not sentiment. I know it is frustrating to see the sector perform poorly but this year has seen a dearth of M&A, clinical and regulatory failures, and now a disaster of […]
April 29th Biotech (and MLP) Update
There certainly seems to be a trend in earnings. The impact of the pandemic is still being felt and if we think about it, the 1Q21 was basically peak cases in the third wave and so it should also mark the peak impact. All that being said I suspect most investors are going to want […]
April 28th Biotech Update
It has been a rough start to earnings season. The sector has done pretty well considering, although it might highlight the need for large caps to do more deals as clearly they are not generating enough growth with their current pipelines and approved products. It is still early in earning seasons and it can still […]
April 26th Biotech Update
An OK start to the week in terms of being green. It looks like we have broken the lower high trends and it would be great to get confirmation of that this week and even make a push at $140 in the XBI. I know it is easy to dump on the sector but honestly […]
April 23rd Biotech Update
So close. We had some really good short term momentum that was going to clearly break above that recent lower high and maybe even get us a challenge of the $140 level. Then the news hit about the capital gains tax increase proposal and the whole market took a hit. On the positive, we did […]
April 22 Biotech Update
So the sector did not dump into new lows, which is good but we are still a really bad day or a couple of regular bad days away from breaking new lows. This $126 level on the XBI has acted as support a number of times (in that we have bounced off of it) but […]
April 21st Biotech Update
It is really starting to look like we have set another lower high and are on our way to set another lower low. I had some hope that we were getting some upside momentum but this just reinforces my view that you need to respect the trend until it is broken and while we have […]
April 19th Biotech Update
We remain in the same spot with the sector. It has not really given us the clear signal but we really need to break above that $140 level to ensure that we have not made a clear lower high. There is also another potential higher low being setup around $135.66 or so. I am not […]
