Rally Developing-Green Screen Alert

If you are underweight large cap biotech add FBT ($76.38) up 2%. Most of our large cap picks are up today: ABBV ALXN, BIIB,GILD,REGN. Reverse pattern from tuesday’s downdraft.


One of the worse days I have seen in small cap biotech in many months as speculation has ended and investors are being very selective with larger caps. A test of April lows is expected. Here is our Rayno portfolio after sell-off as of May 2.

  • Best in class ETFs are still up YTD: FBT 7.4%, IBB 0.6%.
  • Large cap biotechs up YTD: ABBV,  BIIB, GILD, REGN, RHHBY.
  • Technicals will tell the story until Q2 earnings arrive.
  • ALKS holding;  CBST PCYC SGEN VRTX weak technicals.

Diagnostics and tools review later this week.


ASCO Abstracts Are Not Creating Bullish Backdrop

Technicals Are Extremely Weak-Risk Off

Most oncology companies presenting at ASCO have released information on clinical data that will be presented at ASCO  beginning May 30. Major biotech indices are holding the April 15 bottom but mid and small cap biopharmaceutical companies continue a weak trend in Q2. The Russell Small Cap ETF (IWM) is down 5.84% YTD and 5.79 % YTD and over the past 5 days they are both tracking downward. The XBI is down  4.5% YTD after being up 30% at the peak of Q1! Our screen showing over 50 mid and small caps is down over 6%  today with only two stocks up.

Smaller cap movers on the downside with one hour of trading to go are: AGIO down 8%, ALNY down 6.7%, CLDX down 10.4%, ICPT down 10.2%, ISIS down 5.4%, PBYI down 8.7% and SRPT down 3.3%

In our previous posts over the last 60 days we urged investors to go to 30% cash in life science portfolios and overweight large caps. Our favorite ETF is FBT down 2.28% today and up 7% YTD. Rayno Life Science large cap picks are holding up better : AMGN BIIB,GILD.

…We will update after the close today…


%d bloggers like this: