February 5th Biotech Update

I would not say that we are at the end of the chop for the sector but are probably closer to the end than the beginning.  I saw some notes that blamed the lack of rate cuts on the market but I am not sure that is the issue.  It is true that rates remain […]

January 26th Biotech Update

The sector is bouncing along and while it is underperforming the broader markets, I still see it as digesting the large move at the end of last year.  I think this is how the sector works.  A long period of underperformance followed by a short burst of large outperformance.  It would be less stressful to […]

January 22nd Biotech Update

My call of post-JPM weakness has been accurate and while expected, it is not a great feeling especially with the broader market doing so well.  I think we are in a zone where we could find some support, but I am not convinced that this is the level from which we bounce.  The post-JPM weakness […]

December 28th Biotech Update

The sector remains strong.  It feels good to be talking about the continued strength longer than one would have expected.  I would still be cautious about new positions as the chart looks a little stretched.  I do not think we are anywhere near the end of this bull market, but all bull markets need time […]

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 […]

November 1st Biotech Update

The best sign for the overall market was the reversal on a day in which the SMID space could have been hammered by the SRPT news.  The sector started lower but then recovered to end solidly green.  That is a strong signal as to the overall health of the sector.  That is not to say […]

September 25th Biotech Update

I think teetering is the word I would use to describe the sector.  While a lot of the poor performance is sector related, I see this as more of a broader market issue with risk off hitting the whole market and that impacts the sector as being a risky sector.  We have both interest rates […]

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 […]

June 21st Biotech Update

The trading did not start well but it ended up fine.  That is quite important.  We are at an area that should act as support (at least somewhere around these levels) and so not falling any further is not more important that moving higher, but it certainly is up there.  It was good that we […]

June 16th Biotech Update

We are still close and trying.  We did not make a run to the upper level and pull back to the $90 but did make a little move lower to the $88 level.  It looks like it is support at this point and it reset the chart, which might have setup a move above $90.  […]

June 12th Biotech Update

There is a lot to catch up on the past week and rather than go through everything quickly in one day, I sort of want to take my time and review what I thought was most interesting.  I think the sector is not necessarily in a bad spot and if we could find a way […]

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 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 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 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 […]

April 14th Biotech Update

A sleepy week sort of flipped in one day with both drama and action.  We have pushed right up to the $80 level in the XBI which could act as some resistance but it will be interesting to see if the strength of yesterday can push through.  From the bullish perspective, the ideal scenario would […]

April 4th Biotech Update

Not a ton of news so far this week and so it seems like the sector is trading on sentiment and technical.  I think we have more or less made a round trip to where we started the week.  I still think there is room to eventually move to the moving averages but it does […]

March 8th Biotech Update

We remain at a precarious position for the sector and market in general.  We had a little bounce, but it was a disappointing ending to what could have been a nice day.  Those sorts of reversal do not signal strength.  To be fair, there was some more hawkish Fed talk and it is not necessarily […]

January 12th Biotech Update

The sector is setting up in an interesting manner.  JPM weeks that have a red Monday tend to have a red week but we have been strong since then.  Of course, there is a broader market strength that is probably helping the sector to a significant extend because the news has not been bad just […]