A slow week but a good week for the sector. We are entering earnings and that might provide a little boost or drag but it has been awhile since an earnings season really seemed to impact the sector. They can affect individual stocks but the quarters where you have broad read throughs seem to have […]
July 14th Biotech Update
The sector seems to be doing ok as we inch closer to earnings season. It will be interesting to see how the sector moves on earnings as there is nothing that should really surprise anyone. There are still some issues outside the companies that could impact trading. There is some drug pricing reforms being discussed […]
July 12th Biotech Update
No real news to start the week the juice the sector and so far we have simply followed the broader market lower. This could/should be the pullback that refreshes as we have had a nice run higher and a pullback to the $78 level makes sense. Of course that needs to hold and we need […]
July 8th Biotech Update
I am not sure if we end up green today or not but I think we are finally in a decent position for the sector. There is a virtuous position where a sector has outperformed but investor are underweighted it and so they are underperforming the market. They need to get into the sector to […]
July 7th Biotech Update
Are we going to get the deal? It looks like it and it looks like the sector is responding well. To be fair the sector was already doing well before the report, so this looks like a continuation of that move. I think it is relatively safe to say that the sector finally has created […]
July 5th Biotech Update
Not the ideal return from vacation for me or the end of a holiday extended weekend for everyone else. It would have been really nice to have started this week with a buyout but there really is not a ton of news to start the week. Ideally we can reverse this early weakness and build […]
June 21st Biotech Update
Are we finally getting some love in the sector? The market and sector were very oversold and we were due for a bounce in both. We seem to be getting some nice momentum in both (and I would add cryptocurrency which adds to my belief that it really might be a proxy now for risk […]
May 24th Biotech Update
It was a good start to the week but the yo-yo continues. I think if the broader market was not weak that the sector would be forming an uptrend. For the first time in a long time it feels like the sector wants to outperform the broader market. Our issue is that the broader market […]
May 10th Biotech Update
This should be it. The sector has been oversold and very stretched to the downside and was due for a bounce. Today we finally see some significant M&A and this should trigger a nice multi-day rally. If this deal cannot move the sector in a meaningful way when it is oversold then I do not […]
April 29th Biotech Update
We remain stuck in that I think the sector is gong to move with the broader market and the broader market is not good at this point. I would think both the sector and broader market were oversold in the short term and due for at least a dead cat bounce and yesterday looked to […]
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 […]
April 8th Biotech Update
While it looked like today was going to be a flat week of consolidation, the last couple of days have been a disappointment and this is more of a pullback sort of week. Pullbacks are not bad per se as long as it stays above support and I think if we stay above $90 and […]
March 17th Biotech Update
The stalemate in Ukraine likely remains good for the market. I am not convinced that the stalemate can last for months but it is more likely a week or two hiatus. As long as it looks like escalation is not happening or at risk of happening then the market looks the other way. Of course, […]
March 14th Biotech (and Ukraine) Update
Not much has changed in the Ukraine. This is probably a positive for the market but this stalemate cannot last indefinitely. If the Ukrainians are successfully hitting the Russian supply lines (as it appears) then the Russian forces will soon (another week or so) have very little supplies left that they will be unable to […]
February 10th Biotech Update
The sector had been doing well but the inflation data this morning was worse than expected both year on year and month on month. This increases rate increase expectations and higher rates has been lowering the sector. At some point, however, one has to think that rate increases would be priced into the market. How […]
January 19th Biotech Update
Do you have whiplash yet? Yesterday was and I fully expected a bloodbath to open the market today and I was thinking that could setup a nice tradable low (the old gap lower to really push an extremely oversold market to ludicrously oversold) but opening a little higher today makes it less clear. I am […]
January 13th Biotech (and Energy) Update
The sector cannot help itself and stress investors. We are back at the critical level of support and if it breaks then I think there is significantly more downside. My view is that support will hold until proven otherwise (just as resistance will hold until proven otherwise). Given the lack of really positive news or […]
January 4th Biotech Update
Yesterday ended up being a good day but we have seen this before and to really turn the page we need to have multiple good days in a row. So while it was nice to see and was a good start to the new year, it will take more than a single day to convince […]
September 22nd Biotech Update
With all the drama in the markets this week, I have to say that looking at the sector there does not seem to be a ton of damage done to the chart. It looks like we have create a little downtrend in September but a breakout of that mini-downtrend could trigger a run to higher […]
August 27th Biotech Update
Still not a lot of news in the sector. The XBI basically pushed up to the upper end of the range and is now pausing/retracing. The question is what happens after the pause? Is it a pause that refreshes and allows for a breakout or is it the start of the retracement to the lower […]
