September 29th Biotech Update

We ended down yesterday but I actually find the trading encouraging.  There was a big move down early in the day and we spent the rest of the trading day grinding higher.  We still ended lower but we had one hour of selling and the rest of the day was buying.  If we can continue […]

September 28th Biotech Update

We built on the move yesterday but I sort of feel unsatisfied with it.  Perhaps it would have been too much to ask for a rapid and clear bounce off of support but it was a start.  I think the most important point would be to remain above the recent lows as anything below that […]

September 27th Biotech Update

Yesterday was a better day.  The market was weak and yet the sector outperformed.  That is quite the rare occasion.  It had been such a brutal month, there was bound to be a day in which the selling eased.  There was some news that could have driven the outperformance but was that simply an excuse […]

September 25th Biotech Update

I think teetering is the word I would use to describe the sector.  While a lot of the poor performance is sector related, I see this as more of a broader market issue with risk off hitting the whole market and that impacts the sector as being a risky sector.  We have both interest rates […]

September 22nd, Biotech Update

I thought we were heading to these levels and unfortunately we made it.  This certainly needs to hold because the next real support ends up being around $62.   The whole market is weak an so this is not necessarily an XBI issue but we have been in a bear market for multiple years and seemingly […]

September 19th Biotech Update

The sector is not looking that great.  We are at the level that could have been the support for a range bound market but we are marginally below it.  It makes me think that we are heading down to the $72.5 area but the move has been more or less straight down and so are […]

September 18th Biotech Update

So we stopped the clear downtrend when we made the move to $81 but all that did was stop us from having a lower high (we basically made it to the previous high of the downtrend).  I think it is pretty clear that we are not able to start an uptrend and we are going […]

September 14th Biotech Update

Not exactly the day that we wanted to build confidence.  We had a chance but it sort of looks more like a range bound bottoming process is more likely than a clear move into an uptrend.  Of course, we still have the potential to break lower but I still think a range is more likely […]

September 12th Biotech Update

We could be setting up a higher low but I would be very cautious.  If we can remain above these levels and not get down to recent lows it would be a positive sign.  It also means that we need to get above $81.50 to set a higher high (at least in terms of starting […]

September 11th Biotech Update

Not a ton has changed.  We are setting up the potential to establish a higher low but that probably needs to be done this week and I still think there is a potential to revisit the lows as opposed to stay well above them.  As I noted last week, I sort of lean towards more […]

September 7th Biotech Update

I do not think things are as dire as they may feel in the sector.  Obviously, if the broader markets weaken (and this is traditionally a weak month), then the sector will not be able to withstand it.  If you squint your eyes just right, we have actually moved higher than the previous lower high […]

September 5th Biotech Update

I think we are finally out of the riskiest area and are setting up a potential to break the downtrend.  I think trading on Friday broke the clear downtrend, but we probably want to see more before declaring it over.  Of course, not having the downtrend is different than having an established uptrend.  It would […]

August 30th Biotech Update

Teetering?  Is that the best way to describe the sector at this point.  I thought we had a chance with the FTC news to start the week to try and break out of the downtrend.  It is starting to look like all it has done is get us to a point that looks like a […]

August 28th Biotech Update

Is my belief that we make our way to the 52-week lows before finding support to start a trend higher in threat?  Possibly.  Is it strange that I would think that on what looks like one good start to a week?  A little but I do think we have the potential to shift to a […]

August 24th Biotech Update

We got up to $80 on the XBI and it looks more and more like it was resistance and setting up as a lower high.  The question is now whether we end up setting a lower low and if so (as I think is likely) will it take us down to that 52-week low level?  […]

August 23rd Biotech Update

Nothing is going to change my overall view on the market and the sector, where I think we need to touch that 52-week low to find significant longer-term support.  We keep seeing rates going higher and while the cause of that does not matter, the increasing costs of capital always end up being a drag […]

August 21st Biotech Update

Last week could have ended worse for the sector but I do not think anything is saved.  I still think we end up testing the lower $70s on the XBI before all is said and done.  It looks like the 52-week low is the lower $72s and below that level we would be looking at […]

August 17th Biotech Update

Well, the lower low seems to have been put into place as the sector is acting pretty heavy, which is no surprising given that the broader market appears weak as well.  I think we end up get to the 52-week low area for the sector (around 72 on the XBI) before we likely get real […]

August 16th Biotech Update

On a broader market perspective nothing much has changed.  We really have no real momentum in either direction but I still think we have a couple of weeks of vacations before people start getting back and volume returns and we get a clearer picture of the sector sentiment or how it is going to developed […]

August 15th Biotech Update

The sector is not doing great nor is it really breaking down.  We are perhaps in the post earnings, late summer malaise that drifts.  Of course, that does not mean that we cannot have significant movements or price action in particular names but I suspect that we are going to be slow on the trading […]