I head out of town, and I come back to a precarious market. It seems that interest rates are once against front and center for the sector. The Fed is not talking about raising interest rates and they still have been very clear that the next move will be to cut but the rates themselves […]
March 26th Biotech Update
So a whole lot of nothing yesterday. While I guess it remains good that support is holding, we really need to be building some momentum or, perhaps, we would like to see the sector build some momentum. The sector is certainly in a better place than last year and ultimately, I think we do get […]
March 6th Biotech Update
Despite the good start to the week, it has not been as positive of a continuation. We are at the lower end of a range but one that I do not have confidence can hold. I like the $94-$95 level a lot more given that it had acted as resistance for awhile. I do think […]
January 5th Biotech Update
We are slowing into the end of the week, which makes sense for the sector as we gear up for JPM. We have had a slowdown in the upside momentum but that it not bad as it gives the chart time to reset and work off the overbought conditions. It was an incredibly strong run […]
August 30th Biotech Update
Teetering? Is that the best way to describe the sector at this point. I thought we had a chance with the FTC news to start the week to try and break out of the downtrend. It is starting to look like all it has done is get us to a point that looks like a […]
August 16th Biotech Update
On a broader market perspective nothing much has changed. We really have no real momentum in either direction but I still think we have a couple of weeks of vacations before people start getting back and volume returns and we get a clearer picture of the sector sentiment or how it is going to developed […]
August 10th Biotech Update
I am back but my luggage is still on vacation. Hopefully, I will soon learn of its fate and it will find its way home. I need to catch up on the sector trading and will have more remarks on that later but there is more than enough news to keep me busy with reading […]
July 3rd Biotech Update
We at least ended the week well and while there is not a long weekend, we have the day off tomorrow for the 4th of July. I think it is going to be a slow news week and nothing too exciting in the markets. That does not mean that we cannot have a meaningful week, […]
March 29th Biotech Update
I sort of expected a stronger start to the week but perhaps there was more caution than relief buying. We might now be building some momentum assuming investors become less concerned about a pending banking collapse. In other words, rather than the early week strong relief rally, we simply needed a couple days of calm […]
March 16th Biotech Update
The banking crisis continues as CS looks to be the latest bank in the crosshairs. To be fair, there seems to have been questions around CS for years and so it is not necessarily something new but it obviously has become acute. I think it is difficult to see CS going under as one of […]
March 6th Biotech Update
The week ended on a positive note and it would be good to continue with that move as soon as possible this week. I still sort of worry about the increased rates expectations and how that will ultimately play out in the market/sector. Given the continued strength of the economy I think there is a […]
December 7th Biotech Update
I will spend less time on the general market but more on two big data readouts. There is nothing that has changed in terms of the broader sector or market. I still think we are range bound and likely will remain so through the end of the year. GOSS announced a positive trial and got […]
December 2nd Biotech Update
We remain in a range, although there certainly seems to be a pattern with the larger caps outperforming. As I have noted many times, I suspect that if generalists are going to enter the sector they will first do it through the large caps and then down the capital structure to SMID. We need generalists […]
November 2nd Biotech Update
The sector has done pretty well this week considering the broader market and the concerns over the Fed. I still think we should remember not to fight the Fed but the fundamentals for the sector in terms of the earnings have been generally positive. There were some outliers like ABBV but for the most part […]
October 25 Biotech Update
Not an awful start to the week. Yesterday could have been better but it is a solid day today (at least at the start). We have been in a pretty tight range and I would not be surprised this week if we do not get to the $83.50 level on the XBI. When we have […]
March 18th Biotech Update
It has been quite the week for the sector. We have been fooled before but I hesitate to say that this feels different. There was bad news in terms of the interest rate increase as well as signaling for more. There has not been really good company news this week and we still have a […]
December 3 Biotech Update
The sector remains the most painful of all sectors. We got a little rally yesterday only to be crushed this morning. This sort of trading is very frustrating especially because the sector is so oversold that there should be some dead cat bounce rally coming at the very least. One can see the move today […]
August 5th Biotech Update
Things got a little better for the sector with some green but we really need to get some momentum and accelerate to the upside. It is too easy for the bears to sell any rally and short without any real fear that the sector might move against a short position (or move against it more […]
August 4th Biotech Update
I have to say yesterday was pretty disappointing. We finally get some M&A and while it is not massive it is in a hot therapeutic modality and the sector trades lower. One would have thought that would have been enough to at least get a little rally if not something more meaningful. Perhaps it is […]
May 26th Biotech Update
I almost feel like we are stuck in a no news period until earnings but then I remember that we still have ASCO coming up (even though I am not sure it will provide very many fireworks for the sector). I have been talking about the sector being potentially in a trading zone but it […]
