October23 Biotech Update

It is unfortunate that the earnings weeks comes as the market seems to want to collapse. Industrial earnings are finally seeing the impact of the trade policies and now apparently it is a biotech issue. It is hard to see how the sector would avoid being pulled into a larger market sell-off regardless of the […]

October 22 Biotech Update

This should not be week of no news as we have the ESMO data to digest as well as a number of large cap earnings to work through. Unless there is some massive move in the market, it is hard to imagine that the sector does not trade on the news as opposed to following […]

October 12 Biotech Update

Not a lot in terms of news but certainly in terms of action. The selloff has been brutal but I think we are much closer to a bottom than many think. My question is not whether we get a nice short covering rally soon (I expect we do) but what happens after the shorts cover? […]

October 10 Biotech Update

I do not think there is much to say today outside of the obvious. The market is not looking good and we seem to be entering (or in the midst) of a broad market correction that is going to take everything down with it. Fundamentals are not going to matter in the near term. It […]

October 9 Biotech Update

It was certainly not a great start to the week and the sector really needs a turnaround Tuesday to pan out. Interestingly, the pharma and large cap bios did OK yesterday as perhaps a flight to safety trade. The IBB seems right at the bottom of its range and has the potential to find support […]

October 5 Biotech Update

Yesterday was brutal to say the least. There really was nothing to like about it. The XBI seems to have broken below its range and the IBB is rushing to the bottom end of its range. I have been talking about the XBI as the early warning index for the IBB and unless it can […]

October 2 Biotech Update

There is not a lot of news today, so I will keep it relatively quick. I am really not starting to like the way the sector is trading. The XBI continues to act like crap even as the IBB trades near the upper end of its range. If the XBI cannot rally and rally fast, […]

September 27th Biotech Update

We continue to see the disconnect between the IBB and XBI, where the large caps are outperforming the SMID. Given that the previous range break on the IBB did not hold, I suspect we will need greater SMID participation but it is not crazy to see investors first put money to work in large caps […]

September 25 Biotech Update

The sector appears to be gaining some momentum but we need to see the strength continue and ideally broaden. Positive data being rewarded is good as there have been times where positive data got nothing than a quick spike only to be sold later in the day. The IBB is back at the high end […]

September 5 Biotech Update

The hurricane thankfully missed us, so back in the office. The sector had a rough day yesterday but it only took us to the area that should act as new support. A quick dip under 120 or so would not be bad but it has to be quick. Honestly, we have already tested the support […]

September 4 Biotech Update

Another slow start to the week. Sometimes there are expectations for deals after long weekends but the sector continues to disappoint in terms of M&A. Given how important M&A was to many sector theses at the start of the year (and that includes me), it is impressive to see the performance. Explaining the performance is […]

August 20 Biotech Update

I understand that it is still the summer but this is an absolutely no news start to the week. We remain in a choppy market until proven otherwise and this lack of news makes it difficult to discern anything under the surface. Ideally, you would want to see how stocks react to news but we […]

August 16th Biotech Update

The sector was pretty weak yesterday but remained in its range. While there is nothing to dissuade me from the summer chop, there are some warning signs. First, we are close to breaking through the support on both the XBI and IBB. Second, the early morning bounce was quickly sold. Obviously it remains early but […]

August 15th Biotech Update

A pretty weak open for the sector but again this is nothing more than low volume chop as I see it. Unless it breaks below 113 on the IBB and then retests that as resistance or above 120 and then retests that as support, I will continue to argue that the sector is directionless. Of […]

August 4 Biotech Update

I am back from my last trip of the summer and to be honest it is going to take me the weekend to catch up on all the news. That being said there are a couple of points I can make that are essentially the frame I will use to look at the recent news. […]