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
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.