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 […]

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 […]

February 6th Biotech Update

A relatively slow start to the week both in terms of news and trading.  Last week we had a lot of large cap earnings and earing season continues but Mondays tend to be a little slow on the reports.  We started the day red and are struggling to get to green.  That would be a […]

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 […]

September 9th Biotech Update

The market did well yesterday and hopefully we can build on that into the weekend.  The ideal scenario is that old level that we broke out of ends up being the support that we use to move higher.  Yesterday was a good start for that process but we need continuation. GILD announced some more detailed […]

April 20th Biotech Update

The sector once again shows it brutal head and what seemed like a nice opportunity to build momentum and excitement to the upside gets reversed.  While we have not broken to new lows we are certainly approaching the bottom of what could be seen as a channel.  The $80s are going to be critical to […]

February 4th Biotech Update

So we have not broken down which leaves the messy bottoming process still the potential pattern.  Today will be sort of interesting from a market and sector perspective with the strong jobs report.  The jobs report was unexpectedly strong and I assume that will increase rates and rate hike expectations.  We know that the sector […]

August 6th Biotech Update

The sector has a real chance to change the narrative and sentiment.  Yesterday we broke above the recent lower high (just barely but we were above it for a little).  That breaks the clear downtrend but obviously does not mean that it is over.  If we can reverse higher today and build off of that […]

March 15 Biotech Update

Well, we have a chance this week to reverse (or continue the reversal) and send a strong signal that the bottom is in.  I suspect we cannot do that unless the NASDAQ has also bottomed, which probably means the broader market is going higher.  There continues to be little thesis changing news so we will […]

November 11th Biotech Update

Below are my comments on the guidelines that you can forward along.   So it looks like the market has digested the outcome of the election for the most part.  I still think there is going to be a tug of war in terms of COVID with the vaccine news pushing the post-COVID names but […]

October 8th Biotech Update

We are setting a trend higher in the sector with higher highs and higher lows.  What is actually interesting is that we are getting this new trend higher and have not had back to back green days since the middle of September.  We have alternated red and green since mid-September and despite that back and […]

July 29th Biotech Update

It has been a little while but I am back and it seems like I have not missed a ton of news despite it being earning season.  The sector has more or less chugged along but seems a little heavy at this point.  It is not clear to me whether it is the sector or […]

July 8th Biotech (and MLP) Update

We are getting some news as the week progresses but it still remains a little slow on the news.  I suspect that this continues as we have the start of earning season at the end of the month and so unless there is really noteworthy news companies are going to likely wait until earnings to […]

May 26th Biotech Update

The week is off to an optimistic start and it is not clear to me the exact reason.  Perhaps it is more optimism about vaccines or a belief (hope) that the re-opening will not lead to a new spike in cases.  We do know that there seems to have been a massive increase in retail […]

May 19th Biotech Update

What kills bulls runs in the sector?  News can but the floodgate of secondaries opening is also a sure why these end.  Yesterday saw the opening of the secondary window and while the first wave of secondaries does not always kill bull runs, it seems like we are at the beginning of the end.  We […]

April 29th Biotech Update

Yesterday was a retracement day and seemed almost like a rotation out of what was working (biotech) into lagging sectors (banking).  Given the strength in the sector it should be able to handle the retracement before continuing the move higher.  The only worry is the XBI compared to the IBB.  The IBB had made new […]

April 27th Biotech Update

A new week and it is off to a good start.  One debate I often have with myself is whether or not the bottom is in.  It is an important question but really unknowable at this point.  If HCQ or remdisivr or some other drug comes out as a reasonable treatment for COVID between now […]

February 26th Biotech Update

First, I apologize for the emails last night. We all received them as well and no one understands why quite yet. We are looking into it right now and hopefully it was a simple one time glitch. We now have had two big down days in a row and is starting to put some fear […]

February 25 Biotech Update

Today will be interesting for the markets. As I noted, the market has trained most to buy the dips and big sell-offs are followed by new highs. The gap up this morning could all but confirm that we are no longer in that type of market. If the gap turns into a gap and go, […]

November 5th Biotech Update

Let us see if the trend is our friend. We hit what should be some resistance and have stalled. Previously, this led to a day or two of a shallow pullback followed by a push to new highs. We are in the second day of a potential pullback so we should be setting up for […]