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 […]

February 14th Biotech Update

Just when you think rates and inflation no longer matter as much to the sector and market they come back from the dead.  Whether this is a one off event or something that matter longer term is still not known.  We have not really broken support in any way and so we can still look […]

January 16th Biotech Update

JPM is over and it was an OK conference.  It was not the best with deals but there was a big group right before the conference and so all in it was a hefty amount of deals.  The conference appeared one of the more upbeat in recent years and that bodes well.  I think we […]

November 7th Biotech Update

It was not the best of Mondays but given the strength of last week, we were bound for a pullback.  That being said, we are at a precarious point in that we hit resistance and pulled back.  So in some ways this looks quite natural to pullback at this area but it also does leave […]

October 27th Biotech Update

It has been a mixed week.  I could certainly have seen it play out better but I have certainly seen worse.  As they say bottoming is a process and as long as we have not broken to lower lows, we could be in that process.  Of course, resetting oversold conditions for another leg lower is […]

September 29th Biotech Update

We ended down yesterday but I actually find the trading encouraging.  There was a big move down early in the day and we spent the rest of the trading day grinding higher.  We still ended lower but we had one hour of selling and the rest of the day was buying.  If we can continue […]

August 24th Biotech Update

We got up to $80 on the XBI and it looks more and more like it was resistance and setting up as a lower high.  The question is now whether we end up setting a lower low and if so (as I think is likely) will it take us down to that 52-week low level?  […]

August 11th Biotech Update

Have we hit a bottom?  There seems to have been a clear bounce from a level that looks like it could be support but there also seems to be a clear downtrend with lower lows and lower highs.  So this little bounce is good but it needs to get above $85 before we can relax […]

July 28th Biotech Update

Finally a little bit of traction in the sector and it could be a little relief rally or it could be news related.  It is absolutely critical that this is more than an early morning rally that loses steam and we end up red.  We are at an area where a lower low is possible […]

July 26th Biotech Update

Not really an inspiring week for the sector so far.  The broader sector continues to muddle where we really need some excitement and momentum.  I still think we in potential trouble when the broader market corrects.  Perhaps we somehow get money when the broader market corrects but we generally go down even more when the […]

July 25th Biotech Update

The sector has me worried a little as it is holding up but cannot follow the market higher.  There has been real strength in the broader market but the sector has barely been able to eke out anything.  What happens when we get a broader market correction?  In some ways, the sector is perhaps next […]

July 7th Biotech Update

The sector is in a tenuous position and yesterday did not help.  In some ways it looked like we broke down below the support but given how we climbed back and got a lot of the losses back saved a little.  If we can end strong and continue the late day momentum, then yesterday could […]

June 12th Biotech Update

We are trying to break out.  The sector made a run at the $90 level yesterday but was unable to break out.  Perhaps the continued cooling of the CPI numbers will be a macro push that the sector needed.  With inflation looking to have peaked and likely meaning the end of the Fed hike cycle, […]

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 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 […]

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 20th Biotech Update

This week has been pretty tame in the sense that we have not really built on the move higher but have not broken below that $80 level that I think is key to hold.  I think we are all a little impatient with the sector given its recent performance but grinding right above the $80 […]

April 12th Biotech Update

Well, it does look like we are still in this mini range.  The market could be in rally mode today with the CPI coming in cooler than expected.  While I am not convinced that the CPI looks that much cooler than expected (0.1% MoM versus 0.2% expectations), it seems to be enough for some significant […]

April 10th Biotech Update

Treading water?  While it might not seem like it, the sector could be bouncing around support levels and perhaps even setting up a new range between $75 and $78.  If that looks like a pretty tight range to you, I think you are right and the upper end might be closer to $80 and the […]

March 23rd Biotech Update

Are we heading to $60 on the XBI or not?  We sort of broke below the last bit of support yesterday that seemed to clear the way for another 20% or so decline.  It could also have been a head fake that then leads to a reversal.  I would not look too positively on the […]