Biotech Snapshot on a Rally Day…Update-2

8/10 Red Screen in the Morning

We cautioned on XBI at $78 on 7/31 and today it broke through support at $75 to $74.70.

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8/9 Update After Close: A Bit of Caution after Trump’s “Fire and Fury” Talk

Investors are holding off as global risks rise but biotech and healthcare holds July bottom (XBI $75-76) and 4% off JY tops. NASDAQ was off 0.28% today. Weak tape.

  • IBB flat for month at $313,but large caps doing well today.
  • XBI weaker down 1.28% for one month.Many small cap movers.
  • Mid-Caps in the red. Tesaro (TSRO) down 14% over one month as buy-out rumors fade.A very weak sub-sector.
  • Healthcare was in the green today helped by biotech.
  • Today’s movers up: ACAD up 12.4%, ACHN up 19.9%, ACRX up 3.45%, ARRY up 9.62%, MYGN up 9.5%, NOVO up 8.3%, RXDX up 5.8%, XLRN up 3.25%.

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Biotech Snapshot: Life Science Stocks Rally

Fundamentals Look Better

More Green Than Red in Biotech, Next-Gen Sequencing is Hot Again

Earnings season is providing good support to the market. About 70% of companies beat analysts’ estimates a trend that continues the Q1 2017 run. A weak dollar helped multinational company earnings. Last Friday’s solid monthly job report, despite slow wage gains, appears to bolster the US economic recovery. Buyers came today into basic materials, technology and non-cyclical consumer goods. Some tech and consumer stocks recovered: AAPL up 1.4%, CVS up 1.47%, and FB up 1.39%. Healthcare was a tad weak but biotechs held above July bottoms. Until we get big news the technicals will lead the way.

  • The IBB gained 0.54% above a good base at $315.
  • The XBI was up 0.41% above recent base at $77.
  • The XLV was up slightly but trend-less since late June.
  • Smaller cap movers show a lot of interest  in the sector
  • Some big winners today were: BLUE up 3.79%,DVAX up 11.18%, EDIT up 9.09%, ILMN up 2.63%, INCY up 2.56%, and PACB up 11.47%.
  • The QQQ was up 0.63% to $144.5 near its 52 week high.

Gene editing has seen a lot of news lately in MSM and Editas Medicine (EDIT) earnings are coming on August 9 at close.The stock was up 9.09% on good volume.

EDIT was up 3.4% pre-market on 8/8.

 Pacific Biosciences (PACB) is on a three day run up 38%. A big order last week brought out the bulls. 

 

 

 

 

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