Update 1/24 With 2 hrs Trading to go…..Technical levels holding with sector up 7-8% YTD.
NASDAQ still falling down 1.9% at 4139, QQQ down 1.5%
Given the huge 11% move through the J.P.Morgan Conference in January we should only look at technical levels until earnings cycle is completed:
ETFs down about 2.9% today -watch lows breaking through IBB $230 and XBI at $140 still up for the year.
AMGN, BIIB and GILD are solid up or near 2014 highs.
REGN ($283) off 3% is in a downward trend off Oct, Nov and Jan. highs.
ILMN off 3.75% is holding near 2014 highs.
Mid Caps are solid RED except Ariad (ARIA $9.20) up 24% recovering from Iclusig FDA hold. Trading 103M shares!
Notable losers: AEGR down 4%, CLDX down 7.3%, JAZ down 5.76%, SGEN down 4.94% and SRPT down 10.3%.
Stay with large caps.
Profit Taking Is Expected With Sector Up 10% YTD
NASDAQ Down 1% at 4200
We need to see what happens next week before we assess the trend but clearly the euphoria needs some dampening. In 2014 we saw four biotech (IBB) corrections the most severe in June and early October. As expected we had the seasonal Dec.-Jan. rally with the explosive January move. Goldman-Sachs downgraded the sector in January 6 citing valuation with a sell on Celgene but still likes Amgen which has better value. Celgene (CELG) has not been on our focus list and we also recommended profit taking. All other large cap biotechs have outperformed CELG in 2014.
Large cap biopharmaceutical stocks are holding up well: AMGN BIIB, GILD
Significant movers today among Rayno Life Science Picks:
ALXN down 2.3%, ILMN down 1.5%, PCYC down 2.6%, REGN down 2.2%, SGEN down 1.5%,
Small caps are much more volatile so caution on high flying speculative stocks without metrics to support valuations. A 10% cash position as always. Watch the close and tomorrow’s action.