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 13 Biotech Update

Another week and another noticeable lack of M&A. At this point, we are so use to nothing happening that it seems like a normal week (which it is). Even though I enter every week with the expectation that nothing will be done, it still surprises me that the large caps that are getting destroyed because […]

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 8 Biotech Update

Today certainly has some interesting news for stocks I have talked about but unlikely to have an impact on the sector. In any case, it seems to be more of the same and there is still this odd effect in that there are very large moves in stocks but they always appear balanced and the […]

November 7 Biotech Update

Some news to start the day but nothing particularly thesis changing. The sector seemed to hold onto to some of its gains yesterday but more or less a treading water day. The next real sentiment test with perhaps fundamental news would be ASH in early December and perhaps we simply drift between now and then. […]

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, […]

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 […]

November 2 Biotech Update

I remain a little skeptical of the sector. We have had good news this week and while it has pushed those stocks higher, it had no impact on any other stock. The XBI and IBB were flat to down when you had a number of stocks in those indices up double digits. So while it […]

November 1 Biotech Update

The sector is doing well with the release of the ASH abstracts. There is not a ton to glean from the data but there are certainly some nice updates that we should follow to see what happens when we get the full presentations at ASH. In some ways, the more important driver of the sector […]

October 31 Biotech Update

The sector held onto some of the early gains but not a great finish. I read the retracement more related to broader market weakness on the fears of tax reform rather than an indictment of the bio bounce. Today will be important (assuming broader market is benign) to see whether the bounce has any chance […]

October 30 Biotech Update

It is a good start to the week for the sector but whether this is a dead cat bounce or something more meaning has yet to be determined. The selling has been pretty intense and likely overdone, so we were due for at least a bounce and we got through a morning without bad news. […]

October 27 Biotech Update

It has been an absolutely brutal earing season for the sector and for pretty good reason but you have also seen some babies being thrown out with the bathwater. Given the selling that has occurred, it is a natural reaction to assume these are buys or a bounce is coming but I prefer to sit […]

October 26 Biotech Update

A lot to discuss and I will do a couple quick hits and then focus on CELG as that seems the most fundamentally meaningful earnings report. This is going to take a couple days to really talk through all these reports but we will start with some high level points. 1. AMGN quarter was inline […]

October 25 Biotech Update

ALXN managed to hold onto its gains yesterday, which was a positive but the sector just feels heavy. I am not sure if this is simply related to nervousness over earnings plus the negative news last week or is it more macro related. The broader markets have been weakening and high volatility sectors like biotech […]

October 24 Biotech Update

This is the start of the wave of earnings and the sector is right at a critical support level. These earnings will determine (or most likely will determine) whether or not we bounce higher from this support for the next leg higher or break lower. So in some ways the reaction to the earnings is […]

October 23 Biotech Update

News will really start to pick up this week with a full set of earnings. There are a couple of interesting ones to watch but given how late we are in the year, the odds of a massive beat or miss are increasingly small. That being said there could still be some nice movers. 1. […]

October 13 Biotech Update

More of the same with winners drifting higher in the sector and losers drifting lower. I had hoped that volume and interest would have picked up this week but it is looking more and more like we will need earning season and the conferences to drive any sort of interest. Luckily both are fast approaching. […]

October 12 Biotech Update

Volume continues to be anemic but perhaps it will start to pick up into a series of conferences (world lung and SITC) and earnings. I say perhaps but it would be difficult for it not to pick up, so the real question is when the increase starts and perhaps the posting of the late breaking […]

October 11 Biotech Update

More of the same. The sector seems to be content to drift on low volume, which is pretty consistent with the broader market and the lack of fundamental news. Odds are this is the calm before the storm with the most likely set of news coming from earnings but even that should not be completely […]