Time to Follow the Technicals

If you missed the morning action today you were better off unless you were bargain hunting. It looked like another ugly free-fall day at about 10 am EDT until some trigger set off buying with a lot of  choppiness but then volume picked up at 1:30 pm and the market went green for good. But we need follow-through tomorrow to confirm at least a trading bottom, The NASDAQ ended up 23.83 or 0.89% on decent volume of 2.5B shares. The index is still down 5.8% over five days but up 1.5% YTD. So for you numerologists we have double lows of about 2616 on March 17 and June 17! The healthcare sector eked out a o.27% gain with help from major drugs such as BMY,NVS,PFE and LLY. With all the emphasis on large cap dividend stocks we want this to be the bottom. The major ETF’s IBB and XBI recovered but not with any gains. The Q’s are outperforming biotechs by about 5% and today some major biotechs in the NASDAQ-100 were still weak: BIIB,GILD and VRTX.

The Rayno Life Science Portfolio was flat for the day with some nice moves up : CBST and VPHM. Mid-cap biopharmaceuticals are still choppy. When we get all the earnings reports we will summarize the financial metrics of selected Dx and tools companies. Poised for a rally or longer term buys are : GPRO ILMN and NEOG.

The spotlight stock for tomorrow will be Dendreon (DNDN) which fell an astonishing 62% after hours from $35.84 to $13.46! The market cap was $5.23B.The cancer immunotherapy Company withdrew it $350-400M 2011 estimates after missing the revenue forecast of $58M vs actual of $49.6M citing concerns about Medicare reimbursement and  a need ” to streamline our customer experience”. The Net Loss was $114.6M for Q2. These result will have the analysts buzzing tomorrow.

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