June 19th Biotech Update

I think the sector is setting up well if we can break above the $138 level in the near term.   Yes, we had a couple days of weakness earlier this week but the recent strength (modest as it has been) is setting up that weakness as a potential higher low.  This become more likely if […]

June 17th Biotech Update

Not a lot going on in the sector, which makes it a little tough to write about but it does provide a way to figure out the underlying sentiment.  Of course, it seems like the underlying sentiment is basically flat.  Not much movement one way or the other so we are in a low volume […]

June 16th Biotech Update

Not a lot going on in the sector today.  We had that pullback yesterday and it puts us in an odd space.  There is not a really clear place to bounce with the $131.5 or so level perhaps a point.  We need to find some point above the recent lows to bounce and move to […]

June 15th Biotech Update

It looked like we could have gotten some momentum but it was not quite able to continue.  It was not stock specific but pretty broad based.  It is not as if it was a particularly bad day but that momentum that was building that I thought could get us to the $140-1 level on the […]

June 14th Biotech Update

Well, we do not have any buyouts but there is some partnership news.  I am not sure that will be enough to juice the sector but it is likely enough to continue the momentum to the $140/$141 level in the XBI.  Assuming we make it there, there should be some sort of pause/pullback to reset […]

June 10th Biotech Update

I think we are set to make that push to the $140-$141 level on the XBI.  We got some nice momentum and if we get to that level the sector would probably be stretched to the upside and I can see a pause/pullback.  This is not bad as it creates the opportunity for a pullback […]

June 9th Biotech Update

We had a nice little ramp to end yesterday and hopefully that is a sign of some building momentum in the sector.  There are good reasons for us to get some positive momentum with the BIIB approval (it is probably the largest positive surprise this year) and the broader market is likely supportive as well […]

June 3rd Biotech (and MLP) Update

We are inching our way closer to the major catalysts.  ASCO is coming this weekend but I do not think anything from ASCO is going to have the same impact on the sector as the adu decision or perhaps even the VRTX data. I am a little nervous in that ASCO usually has a sell […]

June 2nd Biotech Update

Well, at least we have a biotech deal.  I will discuss it but I am not sure this is the deal the sector was hoping for and probably does not alter sentiment to a large degree.  We still have a lot of catalysts coming and perhaps this deal is just the start of more to […]

June 1st Biotech Update

I was hoping that we would have a surge of M&A starting after this long weekend but I knew it was a pipedream and we are still waiting.  There are still a ton of binary events coming in June (BIIB adu PDUFA, VRTX data, and ASCO to name a few) so we might not need […]

May 28th Biotech Update

We have had 3 green days in a row (assuming that today remains green).  This is sadly the best the sector has done in awhile.  If you look really hard you can see a mini uptrend with this being the first higher high after a higher low.  I call it mini as it is still […]

May 27th Biotech Update

I think this is going to sound like a broken record given the lack of news but I do think we should have some more after (during) ASCO next week (and the adu PDUFA) but until then we likely have not much as we are likely entering the summer doldrums.  In the summer news and […]

May 26th Biotech Update

I almost feel like we are stuck in a no news period until earnings but then I remember that we still have ASCO coming up (even though I am not sure it will provide very many fireworks for the sector).  I have been talking about the sector being potentially in a trading zone but it […]

May 24th Biotech Update

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 19th Biotech Update

We do not have a ton of news but it has picked up a little this week, which is nice.  It is also nice that the news has generally been positive (although not universally so).  It is nice to see that the positive news is being treated as such (having positive effects on stock prices) […]

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 […]