Update-2 11:30 a EDT 11/5 ...Disruption from Pfizer for Coronavirus Stocks: Pfizer shares up 8% on new experimental antiviral pill tea cuts hospitalization rates.Covid vaccine and diagnostics stocks hit hard : BNTX down 19%,MRNA down 21%, QDEL down 6%, REGN down 6%,.
- Jobs are back and all all major indices are up. Unemployment fall to 4.6%.
- XBI flattish at $132, IBB down 3.28%, extreme volatility.among large caps.
Update-1 2p EDT..Momentum in smaller cap biotechs kindling up. My recent XBI trade is up 5% now at about $132. ARKG holding at $77.37. Among movers are: CYRX GKOS MGTX PACB QDEL TDOC etc. Mid cap biotechs green.
Small cap ETFs look good: IJR IWC IWM and trending rally. Update on this post tomorrow that gives our smaller cap picks.
Stocks Power to New Highs in October
- MedTech Picking up Pace with 4%+ gains: FSMEX and IHI.
- Biotechs Lagging but Merck powered to new highs with antiviral news
- Large cap biopharma earnings on track: ABBV, LLY and MRK.
Investors are coming back to healthcare stocks (up 1.62% past week) particularly if they have good earnings and product news. Merck, a long time laggard, soared 17% on their top and bottom line earnings beat and and follow through stories on their experimental oral COVID-19 anitiviral molnupiravir .
The large cap biopharmas at or near new 52 week highs are: ABBV, AZN, GSK, LLY, and MRK. Pfizer and Regeneron report next week.
Among best performing sectors of the past week are: Consumer discretionary 3.9% , NASDAQ-100 3.2%, S&P 500 Telecom Services 2.04%.
But our readers know that a portfolio in healthcare should be diversified with Medical Technology and Medical Device stocks and we have for many years recommend two funds: Fidelity Medical Technology and Devices (FSMEX) and T.Rowe Price Health Sciences (PRHSX). Depending on your tax preferences to hold funds or an ETF you can also have a MedTech position with iShares US Medical Devices (IHI) up almost 20% YTD.
Traders may want to play a rally in small cap biotechs based upon improving technicals with ARKG or XBI both near lows for the year and substantially down YTD.
New highs for the year: MRK AND UNH; indices at new highs DIA , SPY and QQQ.
*we modified the model Healthcare Portfolio incorporating IHI and PRHSX. Note that the second tier of ETFs and Funds are for comparison only.
|10/25||%||12/31||%Perf||% Perf||10/31/21||% Perf||2021|