Update 8/20/14 IWM at $115, NASDAQ at 4528
Rayno Focus Stocks
Achillion (ACHN) at 52 week high up 204% YTD and 48 % over 30 days.
Gilead (GILD) new all time high at $101.36.
Rayno Large Cap Biopharmaceuticals Portfolio (ALXN, AMGN, BIIB, FBT, GILD, REGN,RHHBY) up 24.3% YTD.
A coincident rally in IWM iShares Russell 2000 to midpoint of 2014 valuation supports biotech shares.
Look at the short squeeze in Exact Sciences (EXAS) driving stock up 7.6% as 31% of float is short!! Massive options buying is driving EXAS.
New Picks for Q4 Rally
Celldex Therapeutics (CLDX) up 5,76% over 5 days.
Karyopharm Therapeutics (KPTI) up 2,76% over 5 days.
We were recommending 15-25% cash with overweight in large caps but have been buying more mid and small caps biotechs in anticipation of Q4 rally.
Biotech August rally intact as FBT reaches February 2014 and all time highs up 27.6% YTD:
Biotech Rally Underway- NASDAQ at 4409
Good Time To Add Small and Mid Caps for Q4 Rally
Biotech stocks are up over 20% YTD if you held our top ETF pick the First Trust NYSE Arca Biotechnology Index FBT, or 15% if you held all 7 biotech stocks in our large cap portfolio. Large caps have been the safest play since the Q1 correction and recent market volatility. However now would be a good time to balance your life science portfolio with small and mid cap stocks that are well positioned to rally in Q4. Look for a broad pipeline, unique technology and a strong balance sheet.
One of our top picks Achillion Pharmaceuticals (ACHN) is up 133% YTD and 5% today. Achillion is a has 4 clinical stage drugs with proven mechanisms for treatment of chronic hepatitis C (HCV) infection. Clinical updates on these drugs are expected in the coming weeks. The Company has a strong balance balance sheet with $132M of cash and marketable securities.
Many Rayno Biopharmaceuticals stock picks are in the green today with Alexion (ALXN), Pharmacyclics (PCYC) and Seattle Genetics (SGEN) up better than IBB which is up 0.9%.
We will add several mid- cap biotech stocks to our portfolio in the coming weeks but a good place to start would be Celldex Therapeutics, Inc. (CLDX $15) which has a broad clinical stage in immune-oncology and targeted therapies; and Karyopharm Therapeutics, Inc. (KPTI $37.31) a clinical stage Company focused in nuclear transport targets for treatment of cancer and other major diseases.
Disclosure: we are long ACHN and CLDX.