Biotechnology Sector Outperforming Within NASDAQ

A torrid run-up of over 10% in biotech stocks over the past 3 weeks brings caution to mind as the NASDAQ sell-off hits 1%. Over the past 5 days the NASDAQ sell-off is 2% while biotech indices are only down 1%, nonetheless exuberance may be muted until we get more data from earnings reports over the next several weeks and clinical data comes out of ASCO in early June. The Rayno Life Science Portfolio is down only 0.5% today and large cap positions are stable: Amgen (AMGN),Biogen (BIIB) and Gilead (GILD). Small and mid-cap biotechs are weak (but down only 0.5%) and cash can be raised from big 2011 movers such as CBST,EXEL.ILMN,NEOG, REGN, and TRGT.In the Tools and Diagnostic Portfolio Illumina (ILMN) and Sequenom (SQNM) are notably weak.

Overall the biotechnology and drug sector is holding up very well in today’s sell-off and most of the damage is in commodity related stocks, energy and technology.

For now sentiment and macro trumps sector strength and news. Look for technical support with IBB at $100 then $96.

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