January 18th Biotech Update

Not the best start to the week but to be honest, it is not surprising that we get some weakness as we were stretched to the top of the trading range.  I still would not rule out of break this week but the chart probably needed to reset the overbought conditions in the near term.  […]

November 22nd Biotech Update

Not the greatest start to the week but I have a hard time reading too much into this week’s trading.  I did notice that large caps outperformed SMID and that has been my theme for a little bit.  I still think investors come back into biotech first through large caps and in some ways the […]

October 5th Biotech Update

Apparently all I need to do is put out a cautious note and the market takes off.  I am going to goose the market even more as I am still not convinced we are out of the woods.  I do not see us at the end of the interest rate hikes and the Fed wants […]

September 19th Biotech Update

A slow start to the week but unfortunately not a good start to the sector.  We are at a critical area as I think the $80 level needs to hold on the XBI to limit the potential for a clear breakdown.  This has been support and resistance and a break below would not be a […]

April 13th Biotech Update

We had a chance to build some nice momentum and yet we failed once again.  To be fair the broader markets have not been that conducive so it is not as if this is a sector specific move but it is yet another disappointment in a long line of disappointments.  The sector can still save […]

January 18th Biotech Update

So it looked really bad last Friday and it was quite the comeback rally.  Unfortunately it seems like the broader market is not looking very good and I cannot imagine a scenario with a broader market/risk off move and the sector somehow moves higher.  I guess one can never say never but it seems exceptionally […]

December 7th Biotech Update

So we did not have a bad day yesterday, although that only really is true if you look at the absolute performance and not the relative performance.  That being said it was still better than what we have seen recently.  We are set for a green start to the day and have some positive news […]

June 23rd Biotech Update

Listless.  That might not be the right word but that is how the sector feels.  On a given day it does not feel that way as the daily moves seem like there is some conviction behind them but the daily moves do not seem connected and do not seem to follow through from one day […]

June 14th Biotech Update

Well, we do not have any buyouts but there is some partnership news.  I am not sure that will be enough to juice the sector but it is likely enough to continue the momentum to the $140/$141 level in the XBI.  Assuming we make it there, there should be some sort of pause/pullback to reset […]

December 17th Biotech Update

I am a little surprised at the lack of follow through after Monday.  I expected the potential of a small retracement but then strength to return to the sector.  I am not willing to say the trading is indicating a near term top is in for the sector as we are still in a seasonally […]

January 27 Biotech Update

We are heading into a perfect storm for weakness, so stay nimble and/or hedged. The sector has had a nice run and was overbought. We had an uneventful JPM and are set for a series of post-JPM secondaries. The broader market is going to be weak given growing pandemic fears (and the real impact it […]

February 5 Biotech Update

There might be reason for optimism in the sector. The XBI seems to be breaking above its recent range and the $80 level might have been support for this new move. That would certainly be the best case scenario as it would be a higher low ($80) and one that is a little higher than […]

February 1st Biotech Update

The sector seems to have gotten its footing in a way I was not expecting. Perhaps there is a bigger underlying bid than I thought. Perhaps the dovish turn in the Fed has put risk on again. In either case, it looks like $80 on the XBI acted as support and now the question is […]

December 3 Biotech Update

It is certainly a great start to the week with generally good news from ASH, merger Monday, and easing trade tensions. If we do not get a gap and run with this news, then we are in trouble. I suspect this will be a multi-day move (or at least it should be on this news). […]

February 14 Biotech Update

Some decent news this morning for the sector but not quite a robust reaction. Perhaps the sector needs to pause after its recent run or perhaps it will rally later but I would have expected a little more follow through. It is still early and regardless of the price action the sector needs to continue […]

October 3 Biotech Update

Not the best start to the week for the market or sector but there really seems to be little conviction on this move. So we meander lower and the sector moves with the broader market. I think the market it getting closer to its next big move as we are closing in on four months […]

July 29 Biotech Update

The news is slowing down a little this week but the earnings continue for the large caps. So far as a group the earnings look good indicating solid fundamentals with the companies. The stocks have been reacting well and the sector has been moving higher and outperforming. This move higher raises the bar for the […]

May 26 Biotech Update

Yesterday was more of the same and that is actually good for one of the first times this year. The sector continues higher and modestly outperformer the broader markets. The one negative was that ISI noted that there has been a lack of real money interest. In other words, long term institutional money has not […]

October 29 Biotech Update

As I noted before, it appears that the sector is improving and while I would not say it has turned, I would argue that the odds are better that the next large move will be higher rather than lower. This would especially be the case if we start to see M&A pick up. The potential […]

October 28 Biotech Update

The sector seems to be getting its feet but unevenly and in fits and starts. It looks like the large caps are probably the most consistent outperformers with some strong SMID names but as a group it is much more mixed. We continue to be in earnings seasons and likely explains the outperformance of the […]