Today could be a day of decision in terms of the sector (and some stocks). The XBI seems to have a little pennant forming and it would be nice to see a breakout over the $130 level where that should lead to a continuation next week. Of course, there is still some room for indecision […]
July 30th Biotech Update
Unfortunately we were unable to string together some momentum for the sector. It could have be worse but ideally we would have built on some of our earlier strength this week as opposed to bounce around with some weakness mixed with the strength. It is not surprising given the downtrend we have established but there […]
May 17th Biotech Update
Guess what no deals in the sector. We have a big deal outside of biotech but noting much going on in biotech. I still think this reverses at some point as these companies still need to boost their pipelines and bankers need deals to get their bonuses. Of course, it is possible that the dearth […]
March 31st Biotech Update
We are in an interesting spot. Yesterday started bad but we reversed higher and that continued today. It feels better with this bounce having a nice follow through. What is interesting is that we made a lower low despite the reversal., so in reality we seem to have established a downtrend even though we had […]
February 12th Biotech Update
The sector certainly seems in pullpack mode. There is nothing to think that the broader trend higher is broken but obviously that is something we want to keep an eye on. There will be a broader and more significant move lower but global equities saw the largest inflow of funds ever last week. There is […]
February 11th Biotech Update
I guess it is escalator up and elevator down sort of market. It was a little strange to see the drop midday on what I could not see as any news. Obviously most see the market as extended and overvalued and do not want to be the last one holding when the correction occurs. I […]
February 8th Biotech (and MLP) Update
We have moved past the large cap portion of the earnings with positive price action in the sector but less so in the companies that are reporting. I do not believe that is related to the quality of the earnings as they were generally fine but more of a broader disconnect between large and SMID […]
January 4th Biotech Update
Volume and the market news should start to pick up this week as people get back from the holiday but keep in mind that JPM is next week, so I would not expect a ton of biotech news. Most of the biotech news should be speculation heading into JPM and the news that could be […]
December 18th Biotech Udate
It has been a little disappointing the follow through this week given the big M&A. It is not a disaster of a response but certainly not as good as I was expecting. We still have one day left so perhaps today can get us to new highs. There has not been a lot of news […]
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 […]
December 16th Biotech Update
Well, we have had two red days in a row after Monday’s move. I noted that we should be setup for a rally into the end of the year and that anything other than that bodes poorly in the near term. So is it time to call it and in the short term? Not quite […]
September 14th Biotech Update
We are back baby! This is the M&A that the sector has been wanting. If this cannot break the sector out of the downtrend and push it back to highs (if not higher) then not much else could. The ideal scenario would be a push above the recent lower high today but we were pretty […]
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 15th Biotech Update
I figured the sector was hoping for a merger Monday to really continue the push from Friday. Instead we got a Moderna Monday that is pushing not just the sector but the market. There is really not much more news that I can tell but the ultimately it looks like the old resistance level on […]
May 1st Biotech Update
We finally get two days in a row of the same move but unfortunately it is down. This is not completely surprising as it is completely reasonable that the sharp move higher in the market needs to pause and/or retrench a little. Of course, the tension and worry will be whether or not this is […]
March 3rd Biotech Update
I sure hope that yesterday was not the best that the bulls could do. We need that bounce to continue for a couple of days and I suspect that will be the case. There remains a window of opportunity to rally before we start seeing school and work closures in the US, which I believe […]
October 30 Biotech Update
The price action has not been great the past couple of days despite continued positive fundamentals. This could simply be a consolidation of the recent move higher and setting up a higher low for the sector. I would lean towards the sector setting up a higher low at this point as the macro is fine […]
October 8 Biotech Update
This is going to be an interesting couple of days for the sector. This is either the pullback to consolidate before another leg higher or the end of the dead cat bounce. Sentiment in the sector is awful. Sell side notes are talking about conversations with money managers with most simply seeing the sector as […]
October 1 Biotech Update
We are probably due for a bounce in the sector as it has almost been straight down for a little bit. I think the $84 level on the XBI looks to be some support but that is still a couple points lower. Do we get to those levels before a bounce or has the selling […]
September 30 Biotech Update
The sector continued to underperform. I suspect part of this is a continuation of the overall underperformance and part is increasing fear around Warren’s rise in the polls. That is not going away anytime soon. Warren is not going to suddenly fall off a cliff and it is not as if she is the only […]
