There is nothing that should stop the sector from running higher. Fundamentals look good and it has perhaps the best set of earnings among all sector this quarter. Of course, what it should do and what it does do not always correlate. Sentiment is still negative and could hold it down but fundamentals look good. […]
October 22 Biotech Update
I believe it is safe to say that we have some news today. I strongly suspect the news will be viewed as positive and should drive the sector higher. Let us dive into this news. Aducanumab work! Sort of. Perhaps. I cannot think of a drug that failed futility only to come back later and […]
October 16 Biotech Update
Some good news today and most was unexpected. Some needs more discussion than other but I want to touch on all of them. Ideally this will be the catalysts needed to continue the move higher especially given the lack of a macro catalyst. ALXN is buying ACHN for just under $1B. This requires the least […]
October 9th Biotech Update
We are potentially setting up well for the sector. Yesterday was a down day but was that the pullback to consolidate the bounce and start a trend higher? Maybe. We need to get over recent highs around $78 on the XBI and while we do not need that today we probably need to at least […]
October 8 Biotech Update
This is going to be an interesting couple of days for the sector. This is either the pullback to consolidate before another leg higher or the end of the dead cat bounce. Sentiment in the sector is awful. Sell side notes are talking about conversations with money managers with most simply seeing the sector as […]
October 7 Biotech Update
Not a lot of news to start the week. Some interesting odds and ends but nothing to really be a sector mover, so I suspect it continues with the trend that it ended last week. We had a nice little bounce late last week and it could become more meaningful if we get a continuation […]
October 2 Biotech Update
Today seems like a reversal day. The sector has been down for 11 straight trading sessions and is at a support level. I would have thought that $74 on the XBI would have been stronger support but it busted right through even after the brutal selling. I am not huge into short term trading but […]
October 1 Biotech Update
We are probably due for a bounce in the sector as it has almost been straight down for a little bit. I think the $84 level on the XBI looks to be some support but that is still a couple points lower. Do we get to those levels before a bounce or has the selling […]
September 30 Biotech Update
The sector continued to underperform. I suspect part of this is a continuation of the overall underperformance and part is increasing fear around Warren’s rise in the polls. That is not going away anytime soon. Warren is not going to suddenly fall off a cliff and it is not as if she is the only […]
September 25th Biotech Update
I sound like a repeating record but the news have been pretty slow. I thought it was possible that the sector would break out higher but clearly that was not the case. It will be interesting to see how we respond today as we are now closer to some support. The market honestly seems a […]
September 24 Biotech Update
News remains slow but the macro remains in the background. There is a chance that China trade tensions ease (only before rising again) and Iran is fading into the memory (but this is not over yet). Unfortunately, the market is rallying a little but the sector seems stuck in the mud. It is a little […]
September 23 Biotech Update
Again another slow start to a week. We did survive the weekend without the macro getting worse. I am still not convinced we are out of the woods on the Middle East yet but for now it seems to have faded into the background. It is hard to predict when it will come to the […]
September 18 Biotech Update
Not much happening in the sector or markets outside of the ongoing issues in the Middle East. We will likely get a press conference today that blames Iran for the attacks but that does not help answer the critical questions, which is the response. There really seem to be few good responses as a kinetic […]
September 17 Biotech Update
So I was thinking that any response to the attacks on Saudi Arabia would happen sooner rather than later but I am no longer convinced that remains the case. Clearly Saudi Arabia was taken by surprise and so it needs to tighten its defenses before escalating the situation (if they choose to escalate). A kinetic […]
September 16 Biotech Update
It is looking like a macro week, although this could resolve itself fairly quickly. The attacks on the ARAMCO production facility is likely to have long term effects on oil but whether or not this leads to a broader conflict should be decided in a couple of days. Obviously there will be some response but […]
September 11th Biotech Update
(Sorry for the delay. The site worked but we had an issue with posting new articles. It is now fixed) The resilience of the sector is a little surprising and could pay off. It had been looking like a breakdown candidate but never followed through on that potential. Now it is looking like a breakout […]
September 10 Biotech Update
Surprise. The sector is weak. I am a little surprised that we are not see a faster sell off as clearly there is no momentum and we have broken support. This really seems like a nice and orderly sell off and this is not necessarily good. The selling does not end when there is no […]
September 9th Biotech Update
We have some interesting news to start the week and of course it leads to a flat sector with the broader market green. It seems like the sector is underperforming and again I think that is odd given how well the earnings came through last quarter. Perhaps we are close enough to the election that […]
September 5th Biotech Update
I have class about to begin but I want to put out a quick note on the news. GBT announced that the FDA has accepted the NDA for voxelotor with a PDUFA date of February 26th, 2020. The stock is moving on the news. I do not see the filing as the real news as […]
September 4th Biotech Update
The sector is in an odd spot. It seems to be right under a major support but has not quite broken down. I suspect we cannot remain at these levels for much longer, although we twice went down to the $78 level on the XBI. Given that the $78 twice was tested and held that […]
