It was a good day for the sector yesterday and with generally positive earnings there is a chance we could build some momentum. Add to that the removal of the drug pricing reform threat (it came out yesterday that was removed as a source of funding) and you have the potential to develop momentum. Of […]
September 3rd Biotech Update
It seems clear to me that we have broken out of the range and have a nice little uptrend going on. We still have to have a pullback that resets the short term stochastics and allows us to put in a higher low (and then followed by a higher high). When that happens it will […]
August 2nd Biotech Update
With another big week of earnings, we have another potential to get some interest in the sector but last week was a good week of earnings and another bad week for the sector. Everyone is still waiting on the big exciting thesis changing news and/or M&A, which has been notably lacking in the sector this […]
April 30th Biotech Update
The hits keep coming for the sector. It is certainly underperforming compared to many other market sector but let us be clear. It is not sentiment. I know it is frustrating to see the sector perform poorly but this year has seen a dearth of M&A, clinical and regulatory failures, and now a disaster of […]
April 26th Biotech Update
An OK start to the week in terms of being green. It looks like we have broken the lower high trends and it would be great to get confirmation of that this week and even make a push at $140 in the XBI. I know it is easy to dump on the sector but honestly […]
April 15th Biotech Update
I want to be optimistic and speak to the new upside momentum in the sector and in the immediate term that is accurate. The issue is that even with all the positive price action we have only been able to get to the middle of the $125 to $140 range that is key for the […]
March 17th Biotech Update
What is going on with the sector? It seemed like everything was going well and then the bottom dropped out. Given the recent history with what seemed like a month of pure selling I suspect that it feels like we are set for another big move down. Obviously that is possible and we need to […]
February 10th Biotech Update
Right now the market seems to be the epitome of a market at highs tends to make marginal new highs. The sector has been doing really well and in some ways was leading the moves higher. There was a little pause yesterday which is normal but at this point I still think the trend is […]
November 20th Biotech Update
I think choppy might have been the best description of the market at this point. This makes sense give the competing influences on both the market and economy. I would not be surprised to see this chop continue or perhaps even see some consolidation. The broader market seems in a little more precarious position than […]
October 30 Biotech Update
I said that a kick was possible for the sector and it could be pulling one off. Yesterday ended up better than I expected and was the start of that save but the market remains in a precarious position with anxiety over the election potentially overwhelming everything today. Of course, the consensus seems to be […]
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 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 […]
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 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 […]
July 31st Biotech Update
As much as I am worried about the market and sector, it is holding up so far and that support in the sector held as well. I think we lost the uptrend but we are not quite in a breakdown mode. It is possible that we transition from the uptrend into a consolidation/sideways trading for […]
July 10th Biotech Update
So the sector had its breakout above the old range. It was tested and held and now we seem to be establishing a new range or we could actually be setting up a trend move higher. It is hard to see anything really clear with the sector at this point. In some ways it depends […]
June 19th Biotech Update
The sector started the week looking like it might break under the range but has ended the week threatening to break out above the range. All that being said I strongly suspect that the outcome is that we once again remain in the range. At some point the range will fail but trying to time […]
June 11th Biotech Update
Still not a lot to talk about but the market is starting to feel heavy. That being said we remain rangebound in the sector. Sure we are getting these swings and significant red days but we still are basically trading sideways. This is not true for the broader market that seems more like a top […]
May 21st Biotech (and MLP) Update
The past two weeks or so has seen some large moves on a daily basis and yet there has basically been very little movement in the sector (or market writ large). There seems to be a continued bull versus bear debate ongoing in the market and the basic outlines (if you have seen these articles) […]
