April 24th Biotech (and MLP) Update

It seems like the market is slowly getting back to some sort of normalcy.  The daily massive moves are slowly becoming more measured moves.  Yes, volatility is still elevated and we still get large moves but the days of daily 5%-10% moves higher or lower with even larger swings seems to be slowly moving into […]

April 23 Biotech (and MLP) Update

Good news for investors.  Stocks have never been red when weekly jobless claims were over 3 million and with the 4+ million claims this week, we should be fine.  Clearly we are in abnormal times but simply looking the at the price action and ignoring the broader economic fundamentals, the market is strong.  That seems […]

April 20th Biotech (and MLP) Update

So it looked like last week finally decided the next move would be higher but this morning we start with some weakness.  I would not be surprised, however, to see the market to reverse during the day.  I saw an analysis that showed almost all of the downside on the selloff the past couple months […]

April 16th Biotech Update

It is a week of indecision despite having thought it would be a week of decision.  It happens I guess but we are whiplashing higher and lower but, honestly, if I ignored the larger macro context and just looked at the XBI the chart the past couple weeks, it seems clearly in an uptrend.  We […]

April 15th Biotech Update

Well, today is a day where we should have turned off the alarmed, rolled over in bed, and went back to sleep.  Certainly not a good start after what was a pretty strong Tuesday.  Nothing has really changed fundamentally, so it seems investors are trying to figure out where the next move will and pile […]

April 13th Biotech Update

A mixed start to the week, which seems fitting given the technical analysis that Joe published last night. I highly recommend that you read it as it lays out the next move in the market and I agree that we seem to be at a decision point.  Perhaps we do not get the decision this […]

A Closer Look at The SPX

S&P 500 Index SPX   Last week we had a strong move in the overall markets, were the XBI had a long GREEN weekly candlestick closing at $83.43 just above the $82.38 resistance line. But today I’m gonna take a look at the SPX that lead the move and reflecting to the XBI as well. […]

April 9th Biotech Update

We live in a macro world for sure.  Another strong day as FOMO is coming to the forefront driving the market higher and higher.  Is the market mis-pricing risk at this point?  Perhaps but looking at the FXI it bottomed pretty early into their epidemic and that is probably a good analogy for the US […]

April 8th Biotech Update

Yesterday was interesting in that we had that reversal from the morning highs but it did not seem to spook the bulls as much as I would have thought.  Today we have another move higher in the morning but let us see if this one actually sticks.  It seems like we might be at some […]

April 7 Biotech Update

So the crisis is over!  Or at least that is the way the markets are behaving.  It is pretty clear that we are having a reversal of the COVID sell-offs.  The market is moving higher including and perhaps being led by regional banks and all those COVID related names (whether it be treatments, PPE, or […]

April 6th Biotech Update

A good start to the week for sure.  While it is a nice move higher, we remains at critical levels that could be resistance.  For instance $80 on the XBI will likely be important to break above.  It would be something to move above today given that we only reached it on the big spike […]

April 3rd Biotech Update

Guess what?  Job market sucks.  The market dipped a little on that news which I find a little surprising as nothing about it should have surprised.  What was interesting was that the US indicated that its oil producers were willing to cut production as a carrot to get Russia on board.  I do not remember […]

Watching The XBI For The Next Move

SPDR S&P Biotech, NYSEARCA: XBI   It is interesting to see the closing in the XBI today and tomorrow to get the final weekly candlestick. After the sharp decline along with all other sectors in the US markets, the XBI had reached the bottom of $62.94 on March 18, then the technical correction began, and […]

April 2nd Biotech Update

So it has been interesting the past couple days in the market.  There was a lot of buying to end March but I think most saw that as the 60/40 (stock/bond) funds rebalancing.  In other words, the move in the markets with stocks crashing and bonds flying meant that the 60/40 funds needed to sell […]

March 31st Biotech Update

A decent amount to talk about (some good some not so good).  Yesterday I talked a little about the potential for the bottom to be in and data from China is actually supportive of that thesis.  The PMI both bounced back in March and were better than expected.  To be fair, a positive PMI survey […]

March 30th Biotech Update

The market continues higher albeit at a slower pace.  Clearly the epidemic is not getting any better so why is the market holding up relative well?  First, it could simply be the dead cat bounce from oversold conditions.  I suspect that most think that is the likely scenario and that is not necessarily wrong.  Second, […]

March 27th Biotech Update

Today is going to be an interesting day.  The news has not been good this week but the market has had a nice recovery.  I would expect that the news does not get any better this week and Boris Johnson has actually tested positive for COVID.  We open lower and it seems setup well for […]