September 23 Biotech Update

We could be setting ourselves up for moving to a higher high with the reversal yesterday.  While it certainly seems possible, this would also be the potential start of a new trend so I would be cautious in putting too much stock in it until we see some real confirmation.  In this case it would […]

September 21 Biotech Update

A weak start to the week and it is not immediately clear the cause.  The sector certainly had a decent run last week and a little consolidative pullback is not crazy.  The broader markets were weaker last week and so this could be a continuation of that move.  I actually sort of like this setup […]

September 17th Biotech Update

The sector has been strong and today is the first real test of this move, although when I say test it is more to see how much stronger it can be.  Most of the days this week opened strong and that strength continued but today we open red and so we get to see if […]

September 16 Biotech Update

The early week deals have set a nice rally in the sector which was expected.  The positive is that we not only broke above the last lower high but also closed above it.  As such, I think it is clear that we have broken the down trend and so the question now is whether we […]

September 10 Biotech Update

The sector seems to be doing well as it recovers with the broader market.  One has to remain a little cautious as we seem to be in a downtrend with lower highs and lower lows and while this strength looks good, we cannot become too optimistic until we break the recent trend.  Hopefully this is […]

September 9th Biotech Update

Yesterday could have been worse and it could have been better.  It seemed like we were going to get a real nice bounce and perhaps even get to green but it seemed to stall at the end of the day.  So when all was said and done it was basically a day that had a […]

September 8th Biotech Update

Tuesday are my crazy busy teaching and working days, so I need to make this a quick update.  Luckily there is not a lot of news to really talk about.  In fact, there is basically nothing major to really talk about which could be a little disappointing to the sector that might have been looking […]

September 4 Biotech Update

When I said that the move would be fast when the sector decided to break out of the range, I guess I was correct.  Unfortunately, it was lower as with the broader market.  I suspect that the sector will still underperform the broader markets and it appears that the broader markets appear weak.  That is […]

September 3rd Biotech Update

The sector cannot seem to make up its mind.  It has basically been altering red days and green days for a little bit.  Every day you think there is momentum to the upside it reverses the next day.  Every day you think it is just about to break day, it rallies the next day.  That […]

September 2nd Biotech Update

So clearly the sector does not seem ready to move to the top end of its range.  If anything, then it looks like a clear trend lower.  The move earlier in the week is starting to look a lot like a lower high.  It is an odd sort of downtrend in that the lower highs […]

September 1st, Biotech Update

Positive news that happens near support levels tends to have a positive effect on the sector and that was what we saw yesterday.  The broader sector moved higher throughout the day and I suspect it was not simply a one day move and that we will move towards the upper end of the range that […]

August 31st Biotech Update

Hopefully with some positive news to start the week, the sector will have a positive reaction.  The underperformance has been frustrating to see but I still think we have not broken below support.  As such, this is setting up as a perfect bounce off the low end of the range with the news to start […]

August 26th Biotech Update

I thought Laura was going to completely miss us but we probably get tropical storm for winds from it tonight.  Will not cause serious damage but might be enough to knock out power for a couple days.  So if you do not see me write for a couple days you know why.  In any case, […]

August 25th Biotech Update

I am not sure what God I have angered but this week started out with the potential of two hurricanes to hit my but so far I have dodge one (and good shot for the second to miss).  The market generally had a good start to the week but the sector not so much.  To […]

August 21st Biotech Update

Nothing too exciting to end the week.  It seems like the $109 level on the XBI remains good support and now that we have bounced of that level we seem to be treading water.  So far $115 appears to be acting as resistance so a strong move higher probably needs to show a clear break […]

August 20th Biotech Update

The sector seems to be hanging in there despite the CRLs yesterday but there remains some interesting fallout that I want to focus on today. I would not be surprised to see the sector ultimately move higher in the near term given how well it traded on pretty negative news but we will see. I […]

August 19th Biotech Update

This has been quite the week with it starting by me stepping in dog vomit and then two days of outage of TD Ameritrade and not with that sorted out we get double CRLs for drugs that most probably thought would get approved.  The XBI is more resilient to the new and stronger FDA than […]

August 17th Biotech Update

Hopefully, it was not a sign that my week starting with stepping barefoot into a pile of what I knew was either dog vomit or diarrhea and then having to figure out which it was and then clean it up.  It did not get any better with TD Ameritrade being down.  So how the market […]

August 13th Biotech Update

Well, the sector was able to do a little bit of a kick save yesterday but we are certainly not out of the woods.  Once would have to think that lower is still the more likely trend until we stop setting lower highs.  On the positive side, we still have not set a lower low […]

August 12th Biotech Update

Well, we got that quick move that I expected after the sector had been drifting for awhile and unfortunately it was lower.  So now what?  I still think we will need to test the recent lows to see if we break below and make a lower low (worst case scenario) but if that holds then […]