November 13 Biotech Update

A decent start to the market with biotech generally participating. GILD seems to remain the odd stock and continues to struggle at these levels for reasons that I will follow up on tomorrow. Sentiment seems to be changing in GILD and we certainly need to keep an eye on it even if you do not […]

November 12 Biotech Update

A weaker start to the day today but I still see this as the market treading water as opposed to a new trend. I certainly would keep an eye on the action of the small caps as they have been an early warning signal and they too seem to be treading water with some winners […]

November 10 Biotech Update

News continues to roll in and the market is providing a relatively neutral backdrop, which gives us a good sense of what the price action means. In other words, the price action of biotech stocks after news seems to be a clear signal of market reaction and is not being cloudy by macro effects. This […]

November 7 Biotech Update

To say it has been a busy day is an understatement. Rather than try and cover everything that is happening, I would prefer to focus on a couple items a day. I would also note that the sector seems weakening which is probably an early signal for the broader market but it is difficult to […]

ABBV Survey Results [Free Content]

Earlier today on twitter there was a robust debate about the weakness seen in GILD and how this is related to fears on the upcoming competition from ABBV/ENTA. It seemed clear that there was a debate over the ultimate discount that ABBV was going to offer when compared to the GILD regime. While everyone had […]

November 5 Biotech Update

The markets seem to be in consolidation mode or to put it another way it is trying to make up its mind about the next move. At this point I am 50/50 on the next move as it really seems to be in no man’s land. The longer we stay at these levels the better […]

November 3 Biotech Update

A pretty mixed morning with no real direction in the market. I doubt that we see it trade like this for long, although the longer we do this the better as we could be correcting through time instead of price. The biotech sector is just as mixed as the broader market with no real conviction […]

October 31 Biotech Update

A strong start to the morning but this seems a lot like a short term blow off rally but we need to see how the week closes. If we can end the day near the highs then I think the rally has some more legs in the near term but a close near the lows […]

October 30 Biotech Update

Sort of an up and down morning to start but the sector seems to be outperforming a little, perhaps on the back of good BMY data. At this point the market is in a show me state with both the bulls and bears expecting the next move to validate their view and positions. I still […]

October 29 Biotech Update

A little bit of consolidation in the sector, which seems perfectly healthy especially with the GILD “miss.” The broader markets are presenting a positive/neutral backdrop and I think that eventually leads to the sector playing catch up and then taking the lead. I still think we need to keep an eye on small caps as […]

October 27 Biotech Update

The market started a little weak this morning and while I am sure you can find a reason (Ebola, EU stress tests, end of POMO, etc), the market has had a nice run and simply needs to consolidate. This is not to say that we start the consolidation today but this is getting stretched in […]

October 24 Biotech Update

It was a neutral open for the market which is pretty positive given the selling related to the Ebola case in NYC. It is very positive to see the market shrug off the news as it now seems that the Ebola panic and fear is decreasing. I read that there are probably up to 8-10 […]

October 23 Bioech Update

The rebound is continuing with large caps continuing to lead but with good participation with the small caps, which is nice to see. It really is a little amazing to see how many V-shaped moves this market makes and how little memory it has day to day. In any case, I still think the path […]

October 22 Biotech Update

After a couple days of ripping higher the markets seemed to have calmed a little, which is understandable as this rip higher needs to be digested. The small caps tended to underperform the past couple days but it still might be a little too early to call it a trend and it could just be […]

October 20 Biotech Update

The world did not end in an Ebola pandemic this weekend nor did any economy implode, so the markets breathed a sigh of relief. We may be seeing the slow implosion of IBM but that damage seems isolated to the Dow (for now). When all is said and done it seems like a fairly neutral […]

October 17 Biotech Update

Looks like we are clearly having the bounce that everyone has been expecting (expect during the height of the selling where everyone expected the market to go to zero). This should have fairly significant legs even if it is a dead cat bounce. At this point the conservative stance is to stay agnostic about the […]

October 16 Biotech Update

The market continues its weakness but I am certainly encouraged that small caps are out performing. They were an early signal on the way down and so are potentially an early signal on the way back up. Of course, it could just be funds who were short are raising cash but I am not convinced […]

Biotech Survey Results- Number 1

This is the first report on what I want to be a fairly regular set of surveys. I want to keep the surveys short to maximize participation as the more responders the more relevant the results. I also plan on regularly doing the question on market direction and top three, so over time we will […]