Speculative Fever Broken In Biotech But Sector Still Up 5% YTD

Jan 27, 2014 | Biopharmaceuticals

Follow Technical Levels -Avoid High Flyers

Five Trends To Watch In Biotech-Preliminary Model

  1. Large Cap Biopharmaceuticals: metrics already reviewed-awaiting 2013 financial reporting.
  2. Key Technicals on Market indices: IBB,XBI,PBE, FBIOX, QQQ.
  3. Mid-Cap Emerging Growth in Immuno-Oncology: Stocks reviewed last quarter.
  4. Speculative small caps: many already had a melt-down.
  5. Healthcare Sector Strength Overall. XLV flat YTD.

Major concerns: macro environment, NASDAQ-100 now down 2.35% YTD, reversal of 10 Yr. Treasury to risk-off, excessive bullishness in January 2014 etc. Will institutional buyers support current valuation levels?

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