Update 4/10 Abrupt Sell-Off –Failure to Confirm Bottom

NASDAQ down 71 pts 1.7%

All of yesterdays’ gains wiped out and we are back to January levels.

Raise cash levels to 30% on life science portfolios.  Many high fliers and core holdings are selling off today after bullish action yesterday. See ALXN,GILD, IBB, ILMN, INCY,MDVN, PCYC, XBI etc. Even XLV is down 1.38%. Could be concern about  upcoming earnings or long term pricing considerations.

MOMO stocks also selling off: AMZN ICPT NFLX.


Broad Biotech Rally Starts Early- Builds Head of Steam-IBB Up 4.1%

Intermediate Support Looks Good- Bull Market Test

With the sector down 15-20 % off 2014 highs and many life science stocks barely up YTD , investors decided to jump back into what was the hottest game in town. The healthcare sector overall was up 2%, leading the market although social media and technology were also strong. Many well known large cap names soared: Alexion (ALXN), Alkermes (ALKS), Biogen Idec (BIIB), Celegene (CELG),  Pharmacyclics (PCYC) , and Regeneron (REGN).

Investment Summary

  • Review Rayno Biopharmaceutical picks . All are holds.
  • Large Caps  should lead as they did today.
  • Q1 Earnings will provide better clarity on large cap growth.
  • Support for sector reset is now early January levels.


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