Update-2 11/11…Reversal of reversal..Chips are strong, Techs are back..Biotechs holding (XBI) up 1%, (IBB) up 1%.
- Coronavirus stocks show gains:testing- ABT, CODX, GNMK,HOLX, OSUR, QDEL; vaccines-AZN, MRNA,NVAX ; TDOC.
- Biotech notable gainers: ALLO, BHVN, BIB,RGEN, SRPT, VIR.
- Many small cap biotechs are surging and at highs: DNLI, FPRX,PACB, NSTG,NVTA, VCYT.
Update-1 11/10..10:35a EST..Sector Shakeup?-Financials and Industrials Get Traders Attention
Stay the Course in Healthcare and Biotech
We have to look at Monday’s crazy volatility and sector shift as an anomaly until we get confirmation of a new trend. We maintain an overweight in healthcare and biotech as we posted two weeks ago. First we need to get through the backside of the election storm and confirm the results. Most important we have to deal with the pandemic which is not waning with cases soon hitting the 200k daily rate. So as we have re-iterated many times biotech stocks are part of the solution not only vaccines but new antiviral therapies like the Lilly emergency approval of an antibody drug today.
But without a new stimulus package the economy will remain in limbo an that cannot happen until we get clarity on the election.
As of 11a EST the NASDAQ is off 2% to 11,477 and both the IBB and XBI are down about 0.9%.
Vaccine News Upends “Stay at Home” trades in a Sector Rotation
- Pfizer and BioNtech announce preliminary positive vaccine results.
- Sector rotation to financials, industrials, and small caps.
- Healthcare stocks hold with small gains.
In a volatile day the Dow and S&P took off at the opening as NASDAQ momentum stocks faded through the end of trading. Many well known “stay-at-home” stocks plummeted on the assumption that te economy will open up later in 2021. Diagnostics stocks also plummeted.
(Updates tomorrow as I am having technical issues with WEB publishing)