As perhaps the least surprising news of the day, inflation came in cooler than expected, rates are moving lower, and the sector seems to be rallying. While perhaps the lower inflation is a bit of a surprise, the reaction should not surprise anyone as this has been the relationship for a couple of years. I […]
June 10th Biotech Update
Keeping on the theme of griding we continue to work through the ASCO and other data. The sector is still going to be linked to rates and the Fed but given that we are not in a place for rates to go down, we are looking likely to grind away at these levels. I thought […]
June 5th Biotech Update
Not a bad start to the week. It is a nice little move higher but we are still in a grinding sort of market. I am perfectly content to let the sector build a nice long base at these levels. Of course, these can be double edged swords. It will be a very strong base […]
June 3rd Biotech Update
We are sort of hanging out at these levels. Perhaps we have a modest little downtrend but I sort of see the sector more in a holding pattern more than anything else. I know we are waiting for inflation and rates to move down and our expectations are that it helps the sector. What if […]
May 31st Biotech Update
Nothing really to add on the sector or market in general. It is all about inflation and rates and will be so for the foreseeable future. The sector has been struggling a little and I think probably a little more than I would have originally expected. I understand that rates are heading up a little […]
May 29th Biotech Update
There is not a lot to say about the broader sector or even the broader market. It seems like anyone who wants to go long is buying NVDA and semis and every other sector is being impacted by the higher rates. I am not convinced that the move higher in rates is sustainable as I […]
May 28th Biotech Update
There was not a lot of interest in the sector in front of a long weekend. That is somewhat interesting as usually a long weekend sparks dreams of potential deals being finished. While M&A has been fine this year, there does not seem to be the level of excitement or interest that we have seen […]
May 22nd Biotech Update
We are hanging out. I do feel like there is a little more interest in the sector than has been and obviously it is related to rates. They have trended down recently, and the talk is that CPI should be cooling off as well. The FED has not really changed its tone a lot and […]
May 20th Biotech Update
It is sort of a low new week to start off and I will simply be following up on some older news that slipped through the cracks as I do not see anything really pressing this morning. Ideally we will continue our move higher and build some real momentum in the sector but there is […]
May 17th Biotech Update
It has been a pretty good week for the sector with a nice steady move higher. It has not be an absolute straight line nor has it been dramatic one but a slow build higher is not too bad. In some ways, this is better than an accelerating move as this provides more volume at […]
May 15th Biotech Update
This week has not been too bad for the sector. Perhaps my original thought about steady rates being good for the sector will actually pan out. Of course, that all can change with the next CPI number of Fed talk and so we are still very tied to the broader rate environment (at least that […]
May 13th Biotech Update
While my idea that steady rates would provide some room for the sector to recover and potentially move higher is not quite working out. Steady rates are not bad for the sector but I still think there are worries about the rate environment and perhaps we need to see a little more confidence that inflation […]
May 10th Biotech Update
Not the best of weeks but also not the worst of weeks. It would have been ideal to get some momentum to the upside but grinding volume at this level is not awful for the longer term. Of course, if the next move is significantly lower then this ends up being a level of resistance […]
May 8th Biotech Update
It has been a grinding sort of week. I do not necessarily see hanging around these levels as necessary bad. Putting in some time to generate some support is good but that assumes that we eventually continue higher. I am sort of getting my wish of stable rates. There seems to be a growing view […]
May 6th Biotech Update
It would have been nice to build on the momentum of last week, but we did not. Perhaps this is the pause that refreshes or perhaps we get strength later in the day, but it is not the ideal start to the week with the broader markets showing some strength. To be fair, it was […]
May 3rd Biotech Update
Well, the Fed was not a disaster for the sector and in many ways it worked out well (at least on Fed day). This has generally been a decent week for the sector and while part of that is related to the fundamentals, I still think we are tied to interest rates and the lack […]
May 1st Biotech Update
I would not say that we got momentum but trading in line with the market (if not a little better in parts) is not the worst scenario. I will continue to be a broken record with my call on rates and that once they stabilize they sector will finally start to trade more on fundamentals […]
April 30th Biotech Update
A reasonable start to the week but like we were for a long time last year, it is going to take more than a good day to repair the damage. That being said, it is also going to take rates to stop moving higher. Ideally, they would start to decline but I also think even […]
April 26th Biotech Update
Well, I sort of do not want to be a broken record on the macro and its effect on the sector. It is what it is and we all know it. We are at the start of large cap earning season and so I would prefer to focus on the fundamentals and the broader market […]
April 24th Biotech Update
I do not want to be a broken record but we remain in a market driven by macro and not individual stock fundamentals. The one change so far this week (for the better) is that it is driving a broad bounce back in the sector. Whether this ends up marking a bottom or is simply […]
