NASDAQ Struggling As AAPL Down 5%–IBB ($205.36) off 0.4% Near All Time High of $207.78
The market is trying to continue its resilience since the hits on Syria were postponed pending Russian efforts with Assad. The 10 Year Treasury had an A+ offering at 2.94%.This is the highest auction yield since June’11. This is a yield to watch as an intermediate top going forward since many analysts forecasted a 3% yield due to the FED’s “taper light” expected this month. Also the Verizon Bond (5.2%) offering was oversubscribed today so that could mean bond investors are not deterred from buying bonds at these elevated levels.
Biotechs were mixed today with some high fliers down on profit taking: Aegerion (AEGR $90.62) down 6%, Biomarin (BMRN $71.61) down 3.8%, Nektar (NKTR $13.37) down 3%, and Pharmacyclics (PCYC $119) down 2%. As we mentioned in an earlier report the valuations in “rare disease” companies may take a hit as they are not of core interest to many large cap drug companies and today a Roche executive was quoted on this squelching interest in Alexion Pharmaceuticals (ALXN $113.59).This could account for weakness today in Biomarin off its 52 week high near $76, one stock frequently mentioned as a buyout candidate.. Mid-cap biopharma stocks were more red than green.
Rayno Life Science stocks that are strong today:
Amgen (AMGN) up 1.15%.
Array Pharmaceuticals (ARRY) up 2.6 on good volume of 1.5M shares.
Biogen (BIIB $233) up 1.97%.
Illumina (ILMN $84) up 3.89% New High.
Response Genetics (RGDX $2.16) up 1.89% holding at one month lows.
Let Profits Ride
We have made no recent changes in our portfolio and recommend a 10% cash position as the sector is up over 40% YTD. Watch the tape as technicals will call any correction. A core holding should be Fidelity Select Biotech Find (FBIOX) now up 56% YTD!