Update-1 10/11..3:30P SMID cap rally underway . Check list below for movers. ARKG up 3.9%.XBI up 2.25% off bottom. MOVERS: CRBU,CRMD, DNLI,ILMN,NTRA,SUPN,TEM ,TWST,PACB, VCEL, VCYT, etc.
- Strong earnings from banks supports bullish outlook through end of year. Election remains uncertainty.
- Momentum picks up in biotech after lackluster week.Russell up over 2%.
- Stocks and gold rally for 5th week. But long term rates are rising. with 10 yr at 4.15.
Biotech Stocks Poised For Q4 Rally with SMID Caps
Playbook Summary:
- Investors should assess their risk appetite given the geopolitical turmoil and current market metrics. A core life science portfolio position would be large cap biopharmas paying dividends and with good growth prospects: ABBV, GILD, LLY ,PFE etc. offer value plus growth;OR buy a diversified life science fund weighted toward large caps: FBIOX, JNGLX and PRHSX.
- Traders can watch for momentum tilting toward ETFs weighted in SMID Caps: ARKG, IBB and XBI.
- Healthcare sector is lagging MTD because of recent blow-ups with CVS and HUM, but UNH remains a hold.The healthcare sector can be a safe haven if volatility increases.
Biotech Stocks are cruising in the slow lane wide the XBI at the 97 level but nimble investors are making money now with stocks in volatile momentum markets.Here is a brief summary of last week”s action with our recent SMID trading list YTD:
Take-aways and what to watch this week:
- Best performing stocks YTD with strong RSI’s (>50): ADPT, CPRX,CRMD, DNLI, ILMN, NTRA, NVAX,RNA,RZLT, TEM,VCYT.
- Watch for upgrades and news that boosts stocks.
- If all three ETFs rise (ARKG,IBB, XBI)-an extremely bullish signal- then buy XBI or one or more of these stocks.
- Small cap ETFs IWM, IGR still lag the market so hinders SMID biotech performance ..
- M&A, licensing deals and product breakthroughs have a boosting effect on these stocks.
illumina (ILMN) was a new pick last week in the $141range.
Momentum for biotech stocks is currently neutral.
NOTES on this momentum driven model. Stock picks were screened for cash, technology, analyst coverage and RSI. Most of these companies are not profitable although some have revenue growth.
| 10/5/24 | %YTD | %MTD | |||||||||||||||
| COMPANY | Tocker | ||||||||||||||||
| P | P | % | P | % | % | MCAP | RSI | ||||||||||
| P 1/20/23 | Initial | 2/4/23 | 12/24/23 | YTD % | 4/8/24 | % | 10/5/24 | YTD | MTD | $B | |||||||
| Adaptive BiioTech | ADPT | 4.11 | 5 | 2.6 | -46.94 | 5.52 | 12.65 | 26.9 | 0.814 | 66.7 | |||||||
| Acumen Therap | ABOS | 5.29 | 3.57 | -33.89 | 3.17 | -17.45 | 2.37 | -38.28 | -1.25 | 0.124 | 43.2 | ||||||
| Avidity Sciences | RNA | new | 7/1/24 | 25 | 47.3 | 422.65 | 13.4 | 5.59 | 59.3 | ||||||||
| Catalyst Pharma | CPRX | 16.1 | 16.58 | -10.86 | 14.89 | 11.42 | 20 | 18.98 | 0.45 | 2.37 | 51 | ||||||
| Caribou Biosci | CRBU | 6.29 | 6.17 | -0.175 | 3.71 | -35.25 | 1.87 | -67.36 | -1.58 | 0.169 | 44.67 | ||||||
| CorMedix | CRMD | 3.9 | 5.31 | 41.22 | 8.9 | 136.7 | 55 | 0.497 | 81.2 | ||||||||
| Crenetics | CRNX | 42.12 | 18.38 | 53.14 | 49.35 | 0.64 | 4.25 | 41.93 | |||||||||
| CRSPR Therap | CRSP | 49.61 | -25 | 55.27 | 63.67 | 56.63 | 53.91 | -13.88 | 45.37 | -27.52 | 0.76 | 3.86 | 41.93 | ||||
| Cryoport | CYRX | 21.75 | -42.34 | 25.24 | 16.09 | -7.26 | 16.38 | 5.75 | 7.89 | -49 | -7.83 | 0.39 | 44 | ||||
| Cytokinetics | CYTK | 31 | 65.34 | -21.74 | 56.68 | -32 | 3.26 | 6.67 | 59.55 | ||||||||
| Denali | DNLI | 22 | 19.21 | -9 | 28.63 | 33.41 | 13.79 | 4.1 | 54.3 | ||||||||
| Exelixis | EXEL | 22.25 | 23.75 | -1.21 | 26.66 | 11.13 | 4.1 | 7.6 | 56.8 | ||||||||
| Evolent Health | EVH | 30.83 | 13.74 | 31.96 | 32.08 | 14.25 | 27.65 | -16.29 | 26.34 | -20.25 | -12.26 | 3.06 | 36.67 | ||||
| Geron | GERN | 3.19 | 9.24 | 3.22 | 2.29 | -5.37 | 3.79 | 79.62 | 4.32 | 104.74 | 0.7 | 2.6 | 44.78 | ||||
| Humacyte | HUMA | new* | 8/1/24 | 8.25 | 5.44 | 91.55 | -4.39 | 651 | 45.79 | ||||||||
| Ilumina | ILMN | new | 10/4/24 | 141.43 | 4.42 | 9.99 | 22.53 | 64.54 | |||||||||
| Intelllia | NTLA | 25.5 | 17.99 | -41 | -15.42 | 1.83 | 31.61 | ||||||||||
| Immatics | IMTX | 9.3 | 9.9 | 13.66 | 10 | -4.94 | 10.86 | 3.13 | -3.38 | 1.12 | 39.52 | ||||||
| Natera | NTRA | 60 | 91.66 | 46.33 | 129.84 | 107.28 | 14.66 | 16.06 | 59.94 | ||||||||
| Pacific Biosci | PACB | 11.29 | 55.68 | 11.58 | 8.59 | 5 | 1.47 | -85 | 1.72 | -82.47 | 30.3 | 0.469 | 51.8 | ||||
| Novavax | NVAX | 3.67 | – | 13.61 | 183.5 | 14.66 | 2.18 | 54.13 | |||||||||
| Quidel-Ortho | QDEL | new | 9/16/24 | 44 | 43.77 | -40.61 | 8.45 | 2.94 | 48.17 | ||||||||
| Recursion Pharm | RXRX | 10.75 | 8.12 | -17.65 | 6.11 | -38 | -0.16 | 1.72 | 38.75 | ||||||||
| Rezolute | RZLT | new | 7/8/24 | 4.25 | 4.93 | 396.5 | 4.89 | 0.273 | 53.18 | ||||||||
| Roivant | ROIV | 11.4 | 11.03 | -1.78 | 11.38 | 1.34 | -3.15 | 8.42 | 42.27 | ||||||||
| Supernus | SUPN | 40.3 | 12.3 | 41.61 | 29.23 | -18.05 | 30.07 | 3.9 | 32.02 | 10.64 | -8.51 | 1.76 | 50.67 | ||||
| Tempest AI | TEM | new | 7/10/24 | 52 | 52.94 | 31.5 | -1.48 | 8.17 | 51.53 | ||||||||
| Twist Biosci | TWST | 18 | 3.76 | 34.03 | 31.54 | -14.53 | 43.34 | 17.58 | 9.58 | 2.54 | 43.34 | ||||||
| 10x Genomics | TXG | 47.84 | 56.58 | 55.27 | 27.59 | -50.79 | 20 | -64.22 | 12.46 | 2.41 | 41.31 | ||||||
| Vericel | VCEL | 31 | 34.75 | 31.93 | 46.05 | 29.32 | 43.36 | 21.76 | -9.61 | 2.13 | 45.24 | ||||||
| Veracyte | VCYT | 24.89 | 39.43 | 26.67 | 28.27 | 19.13 | 19.31 | -29.81 | 32.84 | 19.311.13 | 5.53 | 2.52 | 52.83 | ||||
| SPDR Biotech | XBI | 86.99 | 14.75 | 90.39 | 87.62 | 5.57 | 83.49 | -6.51 | 97.51 | 9.21 | -1.03 | 44.19 | |||||
| iShares BIO | IBB | 133.77 | -1.89 | 132.51 | -2.48 | 143.9 | 5.93 | -1.1 | 45.31 | ||||||||
| HealthcareSPDR | XLV | 135.02 | – | 143.22 | 5.02 | 151.64 | 1.19 | -3.19 | |||||||||
| iShares MedTEch | IHI | 53.65 | 57.3 | 6.17 | 55.79 | 58.01 | 7.49 | -1.09 | |||||||||
| ArkGenomics | ARKG | 35.28 | 32.81 | 16.22 | 23.18 | -29.35 | 24.86 | -24.23 | – | ||||||||
| T.RowePrice | PRHSX | 86.84 | -3.32 | 92.49 | 5.22 | 98.82 | 12.42 | -2.27 | |||||||||
| FidoSelBiotech | FBIOX | 1763 | 20.98 | 17.67 | 0.38 | ||||||||||||
| FIdoMedTech | FSMEX | 61.77 | 64.23 | 67.01 | 8.15 | 0.87 | |||||||||||
| JANUS Life Sci | JNGLX | 79.33 | 14.75 | -3.33 | |||||||||||||
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