Update-3 11am 10/28 Rally Time!
NAZDAQ up 1.22% to 15422. This rally could be signaling Biden getting his economic bill approved without Medicare Drug legislation and less onerous taxes. We’ll see. Apparently all new benefits in the bill are paid for?!
Technicals are improving today with the ARKG up 3.22% and XBI up 2.44% trying to lift off bottom. Both were added as trades. The XLV has recovered nicely from earnings and MRK is having a good day up 6% on earnings and new antiviral. Many of my small cap speculative biotechs/healthcare stocks are up big: CYRX ENTX MGTX MNMD PACB TDOC VCYT etc.
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Update-2 10/27 SLO-MO mode in everything but large cap tech AMZN GOOGL MSFT TSLA etc. Value stocks down also energy and financials.
- IBB, XBI weak
- Mid and small cap focus stocks weak CRSP QDEL TDOC
- Large caps winners: GSK beat and yield; LLY misses but pipeline has AD potential.
- Thermo (TMO) at new highs at $ 615 with revenues up 9%.
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Update-1 10/25…Small caps catch bids with NASDAQ up 0.9%.
- 1%+ Movers among stocks we recently covered: CYRX CRSP PACB TDOC VIR.
- ARKG up 1.35% to $75.82, IBB up 1.14% to $160.24.
- BioNtech (BNTX) and Moderna (MRNA) rally on posters and children data.
- Illumina (ILMN) up 2.84% to 420.78.
- Vertex (VRTX) up 0.8% to $185, a stock for bargain hunters?
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Healthcare Stocks Boosted By Earnings: ABT JNJ UNH
- Leading large cap diversified healthcare players delivered good earnings and guidance.
- Small and mid-cap biotech stocks continue to lag as investors rotate into cyclical stocks.
- Leading sectors over the past week are transportation, real estate , healthcare and financials.
Healthcare stocks were boosted by good earnings and raised guidance by leading players Abbott, JNJ and United Health. Medical insurer United Health (UNH) soared to new highs and was the top pick in our healthcare portfolio up 26.1% YTD. Medtech is also making a comeback as medical procedures are benefiting from the recovery helping abbot and JNJ earnings.Our top medtech pick the Fidelity Medical Technology and Equipment (FSMEX) as well as the ETF shares U.S. Medical Devices (IHI) were key to portfolio performance up over 19% YTD.
Our model Healthcare Portfolio is now one year old with nice gains,
Biopharmaceuticals were a drag on the portfolio with the IBB up for the week but up only 4.59% YTD. Biotech was hot in 2020 through February 2021 where it peaked then sold off dramatically . The equal weighted XBI is still off over 11% YTD. better to be diversified with the Healthcare Select SPDR (XLV) up 16% YTD. Among the top holdings are: JNJ UNH PFE ABT and ABBV TMO.
Another top mutual fund pick is the T.Rowe Price Health Sciences Fund (PRHSX) up over 13% YTD but about 10% off its highs. Top holdings are well known to Raygent readers: UNH DHR TMO and LLY. We noted a small holding in Vertex Pharmaceuticals (VRTX) near its 208 lows and may be interesting for a pop in 2022.
A big earnings week is coming for large caps with reports from : ABBV, BMY, TMO, MRK NVS and others. Large cap leaders over 52 months have been: ABBV AZN MRK RHHBY; laggards are AMGN BMY BIIB and VRTX.
Although small caps are doing better with the IWM up 16% YTD most speculative small and mid caps are trailing in 2021 as you can see in the XBI as well as the ARK Genomic Revolution (ARKG) down almost 20% YTD. Many of the holdings are momentum stocks or high fliers like TDOC, EXAS and PACB. Trade carefully. See our Mid-and Small cap focus stocks from previous posts: CYRX CRSP VCYT.
| PORTFOLIO | ||||||||||||
| 2020 | 2020 | 2021 | 2021 | |||||||||
| Stock/ETF | Ticker | Price | Wgt | 11/27 | %Perf | Price | YTD | 2020 | Price | 1 week | High P | |
| 10/25 | % | 1 mo. | 12/31 | %Perf | % Perf | 10/23/21 | % Perf | 2021 | ||||
| iShares NAZ Bio | IBB | 136 | 25 | 143.22 | 2.27 | 151.5 | 4.59 | 25.7 | 158.44 | 1.75 | 176.81 | |
| iShares Russell 2k | IWM | 163 | 10 | 184.37 | 16.56 | 196.4 | 16 | 18.3 | 227.41 | 1 | 234.42 | |
| Merck | MRK | 80 | 10 | 79.86 | 2.4 | 81.77 | 3.97 | -10 | 81.15 | 5.2 | 85 | |
| United Health | UNH | 330 | 25 | 337.94 | 5.44 | 350.7 | 26.1 | 19.3 | 449.16 | 5.78 | 449 | H |
| SPDR S&P Bio | XBI | 117 | 5 | 131.46 | 11.95 | 140.8 | -11.79 | 48 | 124.18 | 1.11 | 174 | |
| Healthcare SPDR | XLV | 108 | 25 | 109.44 | 3.35 | 113.4 | 16 | 11.4 | 131.67 | 3.64 | 136.81 | |
| T.Rowe Hlth Sci |
PRHSX
|
***** | 54 | 13.68 | 112.37 | 3 | 117.14 | |||||
| iShares U.S MedT | IHI | new | 54.83 | 19.47 | 62.45 | 4.29 | 67.15 | |||||
| Tracking Comp | ||||||||||||
| ARK Genomic | ARKG | 93.26 | -19.78 | 74.81 | 1.44 | 115.15 | ||||||
| Fido Biotech | FBIOX | 25.18 | -13.38 | 21.81 | 1.49 | 27.73 | ||||||
| Fido MedTech |
FSMEX
|
19.14 | 86.77 | 3.56 | 89.34 | |||||||
| DOW | DIA | 16.66 | 347.53 | 1.22 | 355 | |||||||
| S&P 500 | SPY | 21.19 | 453.12 | 1.32 | 453 | H | ||||||
| NASDAQ-100 | QQQ | 19.24 | 374.1 | -0.37 | 382.11 | |||||||