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 […]
October 23rd Biotech (and MLP) Update
Yesterday, we had a nice follow through rally from the early morning move higher. That was nice to see and could possibly indicate that we are in the making new high phase of the uptrend. We still are in a limit news phase with earnings to start becoming a larger and larger story (at least […]
October 12 Biotech Update
We are not starting the week with new M&A but we are starting the week with strong momentum both with the sector and the broader market. Of course, very strong broader markets have not necessarily been great in recent weeks for the sector but there is certainly a chance that we break to new highs. […]
September 28th Biotech Update
While there is nothing major happening in the sector, the broader market appears to be recovering and the sector is probably going to be along for the ride. If we can get enough strength this week to push the XBI above the recent highs (around $116.30) then we can start to take more serious the […]
September 10 Biotech Update
The sector seems to be doing well as it recovers with the broader market. One has to remain a little cautious as we seem to be in a downtrend with lower highs and lower lows and while this strength looks good, we cannot become too optimistic until we break the recent trend. Hopefully this is […]
August 21st Biotech Update
Nothing too exciting to end the week. It seems like the $109 level on the XBI remains good support and now that we have bounced of that level we seem to be treading water. So far $115 appears to be acting as resistance so a strong move higher probably needs to show a clear break […]
August 12th Biotech Update
Well, we got that quick move that I expected after the sector had been drifting for awhile and unfortunately it was lower. So now what? I still think we will need to test the recent lows to see if we break below and make a lower low (worst case scenario) but if that holds then […]
August 10th Biotech Update
The sector really does not want to make up its mind. I am a little surprised we have not seen a more clear signal of direction and I think the longer we go without a signal the quicker any move will be. It almost seems as if the sector is coiling for some sort of […]
August 7th Biotech Update
The market and sector seem to both be deciding what to do next and are basically drifting at current levels. I am a little surprised to see the sector drifting given that it is at a somewhat important level for the near term movement. I thought it would have decided whether it wants to break […]
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 26th Biotech Update
The sector remains strong with a green day yesterday as well as a relative outperformance to the broader market. I guess COVID will not matter until it does but I remain worried that it is only a matter of time before case growth (and like deaths) become too high to ignore. This morning we seem […]
June 25th Biotech Update
The sector seems poised to test the breakout sooner rather than later. I am becoming increasing of two minds about the market. I often say (and try) to trade (invest) the market as it is and not as you think it should be. The sector is trading strong with a clear breakout of a decent […]
June 24th Biotech Update
Clearly we have a breakout in the sector. The next phase will be the retest of the breakout and the old resistance should act as new support. How far do we run until the retest? I would think that we are probably closer to the start of that retest than continued moves higher but we […]
May 22nd Biotech Update
The ups and downs continue as we remain in what could be the developing range. I could be wrong but I think a range bound market would be the most frustrating and money losing market for the largest number of people and hence is the likely outcome. Money might just rotate between sectors moving them […]
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) […]
May 15th Biotech Update
It seems a fight/indecision in the sector right now. It remains right at the breakout level unable to move higher to confirm the breakout or move lower to reinforce the level as resistance. It still seems to be doing modestly better than the broader markets but there seems clear indecision at this level and at […]
May 8th Biotech Update
We keep smacking our heads against the resistance above and the more times we hit it the better the chance it breaks. The sector news has been positive and the broader market is still grinding higher, so the broader fundamentals appear supportive of a break. The flip side is that if we cannot breakout within […]
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 […]
