Update-2 11:30 a EDT 11/5 ...Disruption from Pfizer for Coronavirus Stocks: Pfizer shares up 8% on new experimental antiviral pill tea cuts hospitalization rates.Covid vaccine and diagnostics stocks hit hard : BNTX down 19%,MRNA down 21%, QDEL down 6%, REGN down 6%,.
- Jobs are back and all all major indices are up. Unemployment fall to 4.6%.
- XBI flattish at $132, IBB down 3.28%, extreme volatility.among large caps.
Update-1 2p EDT..Momentum in smaller cap biotechs kindling up. My recent XBI trade is up 5% now at about $132. ARKG holding at $77.37. Among movers are: CYRX GKOS MGTX PACB QDEL TDOC etc. Mid cap biotechs green.
Small cap ETFs look good: IJR IWC IWM and trending rally. Update on this post tomorrow that gives our smaller cap picks.
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Stocks Power to New Highs in October
- MedTech Picking up Pace with 4%+ gains: FSMEX and IHI.
- Biotechs Lagging but Merck powered to new highs with antiviral news
- Large cap biopharma earnings on track: ABBV, LLY and MRK.
Investors are coming back to healthcare stocks (up 1.62% past week) particularly if they have good earnings and product news. Merck, a long time laggard, soared 17% on their top and bottom line earnings beat and and follow through stories on their experimental oral COVID-19 anitiviral molnupiravir .
The large cap biopharmas at or near new 52 week highs are: ABBV, AZN, GSK, LLY, and MRK. Pfizer and Regeneron report next week.
Among best performing sectors of the past week are: Consumer discretionary 3.9% , NASDAQ-100 3.2%, S&P 500 Telecom Services 2.04%.
But our readers know that a portfolio in healthcare should be diversified with Medical Technology and Medical Device stocks and we have for many years recommend two funds: Fidelity Medical Technology and Devices (FSMEX) and T.Rowe Price Health Sciences (PRHSX). Depending on your tax preferences to hold funds or an ETF you can also have a MedTech position with iShares US Medical Devices (IHI) up almost 20% YTD.
Traders may want to play a rally in small cap biotechs based upon improving technicals with ARKG or XBI both near lows for the year and substantially down YTD.
New highs for the year: MRK AND UNH; indices at new highs DIA , SPY and QQQ.
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*we modified the model Healthcare Portfolio incorporating IHI and PRHSX. Note that the second tier of ETFs and Funds are for comparison only.
| 2020 | 11/1 | 2020 | 2021 | 2021 | ||||||
| Ticker | Price | Wgt | 11/27 | Price | YTD | 2020 | Price | MTD | High P | |
| 10/25 | % | 12/31 | %Perf | % Perf | 10/31/21 | % Perf | 2021 | |||
| IBB | 136 | 25 | 143.22 | 151.5 | 5.35 | 25.7 | 159.6 | -1.29 | 176.81 | |
| IWM | 163 | 10 | 184.37 | 196.4 | 16.32 | 18.3 | 228 | 4.25 | 234.42 | |
| MRK | 80 | 10 | 79.86 | 81.77 | 12.81 | -10 | 88 | 17.23 | 88 | H |
| UNH | 330 | 15 | 337.94 | 350.7 | 31.31 | 19.3 | 460.47 | 17.85 | 460 | H |
| XBI | 117 | 5 | 131.46 | 140.8 | -11.34 | 48 | 124.81 | 0.72 | 174 | |
| XLV | 108 | 25 | 109.44 | 113.4 | 18 | 11.4 | 133.82 | 0.46 | 136.81 | |
|
PRHSX
|
99.65 | 15 | 114.29 | 4.21 | 117.14 | |||||
| IHI | 10 | 54.83 | 19.93 | 65.42 | 4.21 | 67.15 | ||||
| ARKG | 93.26 | -19.47 | 75.1 | 0.51 | 115.15 | |||||
| FBIOX | 25.18 | -12.27 | 21.98 | -1.3 | 27.73 | |||||
|
FSMEX
|
19.14 | 88.17 | 5 | 89.34 | ||||||
| DIA | 17.15 | 358.23 | 7 | 358 | H | |||||
| SPY | 22.83 | 459.29 | 1.32 | 459 | H | |||||
| QQQ | 22.46 | 386.11 | 7.86 | 382.11 | H | |||||