May 31st Biotech Update

Yesterday was not great or at least it did not feel great.  It looked as if we would have a nice little bounce but ended up red again.  Stepping back, however, we are not in an awful position as long as we do not break below the recent lows.  There seems to be some support […]

May 30th Biotech Update

Last week was disappointing to say the least.  I was worried about the macro and the impact on the sector but it ended up not mattering.  The market actually did pretty well but the sector was weak both in an absolute sense and a relative sense.  That is always a difficult situation as it is […]

May 25th Biotech Update

The sector is in an odd position.  We sort of made a higher high when we got to the $90 level, which would generally be good but we ended that day way off the highs and then followed up with a weak day.  Generally, I would look at that as a failed breakout and a […]

May 23rd Biotech Update

A nice little rally yesterday and hopefully we can continue that momentum.  Obviously the ideal scenario is that the sector can break out and go to a higher high after having set a higher low.  To be fair, we have been in this situation before and even had a mini upward trend established only to […]

May 22nd Biotech Update

Note a lot of news to start the week but it does not mean that we are not setup for a potential good week.  Last week was not great but if you take a step back and look at the bigger picture, we are not in a bad spot.  A positive week could setup a […]

May 18th Biotech Update

The FTC news with AMGN and HZNP was an awful way to start the week but in all honesty, the sector seems to have held up.  The green day yesterday could be setting up a higher low, which assumes we make a higher high.  I would not say the all clear has been signaled but […]

May 16th Biotech Update

The sector absolutely cannot catch a break.  Everything was looking good and solid and now the proverbial rug has been pulled out.  There is no recovering today.  It will be red but the broader move is not done (at least it does not have to be).  I think as long as this pullback stays above […]

May 15th Biotech Update

A strong start to the week, which is good as there is not a ton of news to be driving the move.  We did end the week with some good news but it is a relatively quiet start and the move higher bodes well.  I often like to see how the sector trades without news […]

May 12th Biotech Update

While I thought we could have made a little push higher before the chart resets itself, it looks like we are in the midst of a pullback.  I think anything into the $83 range would be reasonable in the context of a bull market pullback.  Anything that moves lower than that would raise some questions […]

May 11th Biotech Update

Can we make a little run to the $90 level on the XBI?  We got some nice momentum and that seems a reasonable spot for a pause that refreshes but it has been a pretty strong move higher that could pause at any point.  May has been a very strong month and we are close […]

May 9th Biotech Update

Overall the market seems to be digesting the recent moves, which is fine.  A day or two sitting around these levels before a push higher is probably better for the longer run potential of the next move.  As long as we keep making higher highs and higher lows, it remains a positive environment for the […]

May 8th Biotech Update

We are in a little cycle (it seems) with a bid on Friday in the hopes of a merger Monday and then a little disappointment if there are not any deals.  To be fair there has been a good number of Mondays with deals, which is probably not sustainable and perhaps there are other reasons […]

May 5th Biotech Update

I think this week has been pretty good for the sector.  Ideally we can keep it going with a nice strong close.  Given the number of merger Mondays we have had recently, there should be an underling bid into the weekend but who knows what the macro is going to do to the market with […]

May the 4th Biotech Update Be With You

We seem to be finally breaking out of the range especially if the broader market can at least hold up.  The news continues to be good for the sector and that seems to be bring more investors and interest.  As long as these new investors can make money there should be a nice momentum that […]

May 2nd Biotech Update

Certainly, a good start to the week.  We basically got to the upper end of a range around $83 and I would not be surprised to see that act as a little bit of resistance, although if we are in a bull market it should not last too long.  I would like to see us […]

May 1st Biotech Update

After taking a one week break from a merger Monday we are back at it.  The lack of M&A was an explanation in previous years for the sector underperformance but that cannot be said this year as it has accelerated.  Yes, there could be other reasons for underperformance but bull markets climb walls of worry […]

April 28th Biotech Update

It is more than a little disheartening to see a strong rally that leaves out the sector.  If one wants to try and look at the bright side it saved us from breaking down and we seem to be bouncing off of a support level.  Of course, it looks pretty meaningless if we cannot rally […]

April 27th Biotech Update

Are we breaking down?  It has certainly not been a good couple of days but even though we are under the $80 level on the XBI, it looks like we are still at the bottom of a range.  This is certainly a precarious position and not one where I think we want to linger.  There […]

April 25th Biotech Update

A slow start to earnings with nothing really pushing the sector.  I think as we move through the large cap section of the earnings the questions will revolve around M&A as it is hard to see a large cap that does not need some additional filling out of the pipeline with some more than others.  […]

April 24th Biotech Update

A slow start to the week after a couple of bust Mondays with deals.  We are getting into earnings seasons and so it is not surprising that we slow as companies get ready to report.  I do not think there is anything that will be very compelling or thesis changing in earning and I suspect […]