Update-3…8/16 Big reversal day…summary this weekend with XBI up 2.65% at $82.46 just above support.

Update-2… 8/14 Nowhere to hide from Global economic fears-welcome to whipsaw trading. Technicals matter not tweets.

Market averages down about 3% today wiping out gains from yesterday.

  • XBI down about 2.82% tp $81.25 approaching 2019 major support level of $80.
  • IBB down 2.3% near 2019 support of $100.
  • Only biotech stocks up on my screen: AGIO, AMRN, ANAB, ARNA, BGN, EDIT, EPZM, PACB, PTLA,SGMO,VYGR.

Update-1 Rally day on China “Walkback”-10% Tariffs Delayed-AAPL Up 5% as Bellwether!?

Tweeters and news whipsaws markets.

S&P Up 1.4% at 10 am EDT


Macro Issues Dominate Market–Do Trade Wars mean weaker earnings ahead?

Bond markets rule.10 Year yield hits 1.64% with an inverted curve- Fight to safety on a global level, 30 yr at all time low.

Red Screen Day in Biotech

  • The XBI dropped 1.98% to $82.36 still unable to hold above $85 the most recent pivot point in early July.
  • The less volatile IBB was down 1.25% to $104.16 headed toward May/June lows around $100.

After a decent week in the life science sector most stocks reversed with few winners:

Amgen (AMGN) soared 4.86% to $205.78 getting a U.S. judge ruling that upholds two patents on Enbrel denying challenge from Novartis’ Sandoz unit.

Most other large caps were in the red with Roche Holdings (RHHBY) among the more stable values with a 3.11% dividend. Sector Leader Merck (MRK) held above $85.

Incyte (INCY) held  $82 near its 52 week high of $89 two weeks after an earnings and revenue beat. Analyst have. buy rating on the stock.

Gene therapy stocks sold off hard today many down 3-5 %. We took profits last week on CRSP Therapeutics (CRSP) but I want to get back in should macro pressures ease.

We gave a brief review of life science tools and diagnostics sector last week when many stocks gained. Today there were just a few winners among widely followed stocks:  NSTG PACB QDEL Big MO stock Guardant Health (GH) was down 4.3% to $98.63 on heavy volume showing what a ” risk off” sentiment can do to a bullish set-up.

Some of our big winners crashed last week and today like Amarin (AMRN) on an unexpected negative FDA panel review. Teledoc (TDOC)  held today at $65 looking good for the longer term.

Risk off as macro rules the tape.

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