NASDAQ leads -up 0.6% to 4787

The October correction of ~7% was a “headfake” as macro events scared many investor away

Technology and Healthcare Stocks Lead The Way

  • The healthcare SPDR (XLV) is up 24.5% YTD and the technology SPDR (XLK) is up 18% YTD.
  • Biotech stocks are at new highs with all major ETFs rallying in November. Our top ETF pick FBT is up 46% YTD.The broader NASDAQ based QQQ is tracking the rally off November lows up 20% YTD to $105.5. The chart broke out of channel on Nov. 1.
  • Seasonality favors biotech and tech stocks through January although it appears that stocks are getting ahead of themselves. But we already tested intermediate lows in mid-October and we are above  the February highs.
  • Rayno Life Science motifs are tracking as follows YTD: large caps up 33.7%, mid caps up 25%, small caps up 40% YTD after  a blow off top in February.
  • Speculation and volatility are increasing in smaller cap names. Traders rule!

Rayno Diagnostics and Tools Stocks

Diagnostics and Tools Stocks Sold-Off in Q1 But Long Term Outlook Attractive |

We published our portfolio update on 11/24 (above). This sector did not do as well as biopharmaceuticals but there were some big winners. The smaller cap stocks did not perform well because of revenue shortfalls. The only re-iterated trade we recommended among this group was Pacific Biosciences (PACB) in mid $5s and it is now at $7.

The best performers were Exact Sciences (EXAS) -now $2.1B market cap, Illumina (ILMN) and Abaxis (ABAX). All of the stocks on our list can be held but caution is urged on new buys. CardioVascular Systems (CSII) made a nice move today up 4.85% on no news but recent announcement on Q1 2015 revenues grew to $41.4M a 39% increase. NanoString Technologies (NSTG) made a 2% recovery to $15 from an oversold condition.NSTG hit a high of $22.40 on March 12 so could be a good short term trade going into January.

Other nice winners YTD are Cepheid (CPHD), Hologic (HOLX), Sequenom (SQNM) .

Rayno Biopharmaceutical Stocks

No change in our core portfolio except smaller cap trades.

Biotech Stocks Hit A Wall After a 40% Gain YTD |


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