Nothing too exciting to end the week. It seems like the $109 level on the XBI remains good support and now that we have bounced of that level we seem to be treading water. So far $115 appears to be acting as resistance so a strong move higher probably needs to show a clear break […]
August 19th Biotech Update
This has been quite the week with it starting by me stepping in dog vomit and then two days of outage of TD Ameritrade and not with that sorted out we get double CRLs for drugs that most probably thought would get approved. The XBI is more resilient to the new and stronger FDA than […]
August 13th Biotech Update
Well, the sector was able to do a little bit of a kick save yesterday but we are certainly not out of the woods. Once would have to think that lower is still the more likely trend until we stop setting lower highs. On the positive side, we still have not set a lower low […]
August 12th Biotech Update
Well, we got that quick move that I expected after the sector had been drifting for awhile and unfortunately it was lower. So now what? I still think we will need to test the recent lows to see if we break below and make a lower low (worst case scenario) but if that holds then […]
August 11 Biotech Update
It looks like we are getting an answer to the direction this morning. There is a sharp drop for reasons that are not immediately clear to me. The sector has been hanging out treading water for awhile and I thought that meant when the move happened it would be fast. I guess I was correct. […]
August 10th Biotech Update
The sector really does not want to make up its mind. I am a little surprised we have not seen a more clear signal of direction and I think the longer we go without a signal the quicker any move will be. It almost seems as if the sector is coiling for some sort of […]
August 7th Biotech Update
The market and sector seem to both be deciding what to do next and are basically drifting at current levels. I am a little surprised to see the sector drifting given that it is at a somewhat important level for the near term movement. I thought it would have decided whether it wants to break […]
August 6th Biotech Update
The sector came close to getting above recent highs but seemed to touch them and then pullback. It was not necessarily a bad day for the sector but also did not quite break the potential downtrend. There seems to be some positive news last night and this morning, so perhaps that will be enough to […]
August 5th Biotech Update
We are really close to breaking above the recent high and that would be very positive as it stops a lower high from being formed. It has not happened yet and we could still fail but if the momentum continues it would be even more positive as it would have been done without M&A being […]
August 4th Biotech (and MLP) Update
Well, that was quite the bounce yesterday. The morning start off well especially given the lack of market moving news but then a grind higher turned into a run. I would look at the highs of July 27th and July 28th as key levels. Despite the great move, if we cannot break above those levels […]
August 3rd Biotech Update
It looked grim Friday for the sector. It simply could not catch a bid. I am sure most (all) of use tried not to think about the price action this weekend and were resigned to more selling. Today, however, we get a bounce. What is interesting is that having being a couple days removed from […]
July 31st Biotech Update
As much as I am worried about the market and sector, it is holding up so far and that support in the sector held as well. I think we lost the uptrend but we are not quite in a breakdown mode. It is possible that we transition from the uptrend into a consolidation/sideways trading for […]
July 30th Biotech Update
The sector certainly fells heavy. Nothing seems to take individual stocks higher and everything seems like a reason to sell. The whole market was basically higher yesterday outside the sector. In addition, we did not make a higher low breaking what was a positive trend higher. Despite all these issues, the $110 area on the […]
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 14th Biotech Update
Yesterday was an odd day. We started off consistently strong and ended up quite weak. There were two pieces of news in the afternoon that happened close to the same time: two of the larger California school districts going online for the fall and the US rejecting all of China’s South China Sea claims. I […]
July 13th Biotech Update
It seems as if the news is really starting to dry up as we get closer to earnings seasons (plus the usual summer doldrums is probably also having an effect). I expected at least some news to start the week but there really is not much which likely means the sector will follow any macro […]
July 10th Biotech Update
So the sector had its breakout above the old range. It was tested and held and now we seem to be establishing a new range or we could actually be setting up a trend move higher. It is hard to see anything really clear with the sector at this point. In some ways it depends […]
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 […]
July 6th Biotech Update
It was a long holiday weekend and the back of our mind expectations/hope is that we get extra good news to start the week, especially news on the M&A front. Well, we are pretty much a dud on news to start this week. There are no new deals and there is nothing really noteworthy on […]
July 2nd Biotech Update
The news seems to have dried up as we head into the long weekend. We had “positive” jobs data that seems to be sparking a rally. While the data are good, it is also on the back of the expanded epidemic so it seems a little unsustainable as there have been repeated closings in the […]
