Update: 12/29/18
Biotech Stocks Halt Slide: IBB down 0.34% to $94.84 and up 4.7% for the week, XBI up 0.73% to $70.09 and up 5.6% for the week. XLV up 3.5% for the week to $85.25.Volatile market trying to hold DEC 24 bottom.
Recent trades that worked: ABBV AMGN ; did not work ALXN CELG
Coming up JPMorgan Healthcare Conference Jan 6- SIGN UP NOW for updates.
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Update: 12/24/18…NASDAQ takes another hit down 2.2% to 6192.92
Biotech stocks followed NASDAQ with losses but some stocks had a touch of green today with the IBB down 1.38% to $89.61 and down 18% YTD; XBI down 0.41% to $65.47 and 24.93% YTD. The rout in stocks may be accelerated by ETF selling.
Large caps were down across the screen but here are some stocks up over 52 weeks: AMGN BIIB MRK REGN RHHBY
Mid caps up over 52 weeks are: ARNA ICPT LOXO NVCR SRPT XNCR
Of some concern is the XLV down 2.39% to $80.70 and down 2.69% over 52 weeks. On 11/30 the XLV was up over 15.6% YTD and was at $95.87! Healthcare was the strongest sector before the broad market sell-off in December. (see the scary chart below)
A little early to find a bottom but there should be some good trades with the JPMorgan Healthcare Conference coming up on January 7.
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Free falling biotech stocks (the IBB is down 16.9% YTD near 1/17 lows!) are beyond analysis so start by looking at our previous posts when the bear market began:
The biotech bear market began from our perspective on 11/4/18 in the post Biotech Bear Market when technicals failed and large cap earnings did not offer support. A follow-up rally on 11/9 failed with the XBI dropping to the $80 level. Small caps became treacherous.
On 11/12 we provided performance metrics for Large Cap Biopharmaceuticals and focused on trading individual stocks like Tesaro (TSRO). We dropped the portfolio approach. The best performers at that time were MRK and VRTX and the worse were ABBV,BMY and CELG.
On 12/7 Macro Events continued to derail biotech stocks in a jittery market, with the Moderna (MRNA) dropping 19% the day after the IPO. Markets remained volatile and trendless.
Over the next week and through the New Year we will look for new trading opportunities beginning with large cap stocks. Here are several dividend paying large cap biopharmaceutical stocks still well above their 52 week lows: AMGN MRK REGN RHHBY. Celgene (CELG) is a disaster down 47% YTD. Mid-caps well above their lows are : ICPT IONS LOXO XNCR.