Update-3 JY 19…3:15 EST.. Market still down little but coming back. CNBC offering positive comments on biotech, tape looks better. I had a nervous trigger finger yesterday selling my profitable NTRA and its coming back today but Ill wait to get back in.. SMID movers today : CPRX, IMTX, SUPN, TEM so I think the SMID rally can continue. Bought a little RZLT. Check out SILO percentage gainer yesterday but down but down over 26% today .NEWS was a novel intranasal drug delivery platform for psychedelics and misc drugs.
Update-2…7/18…Broad Sell-off continues for second day with large cap biopharmas being hit. PFE, RHHBY and GILD were holding up until later in the day. Some of my longer term SMID profitable trades were wobbly today so I sold NTRA-only news was massive insider selling so we”ll see. I sold bellwether XBI yesterday based on technicals and today it dipped again to the $97 level. I’lll summarize SMID markets over the weekend but we need to see the small cap indices (IWM,IWD,IJR) holding to expect speculative biotechs momentum to continue. It’s almost like a day traders market. despite the recent big small cap moves.
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UPDATE…,7/16…1152am SMID Cap biotechs are soaring now with XBI at $102+, IBB at $148 and most stocks on our MOMENTUM list are up 4% or more. BIGGEST rally of the year!
ABOS, CRBU, CRSP, CRMD, CYRX, EVH, NVAX,PACB, VCEL,VCYT etc etc
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Biotechnology Stocks Showed Nice Gains and the Small Cap Rally Should Continue This Week
- All of our bellwether indicators were positive last week including IBB up to $!45 and XBI up to $99 near one year highs.
- Our SMID trading picks had a great week with momentum across the screen: ADPT, RNA,,CRNX, NTRA TWST,VCYT etc.
- Spurred by the likelihood of a rate cut by September a rotation was evident to cyclical and smaller caps: IWM up 6% IJR up 5.46%.
it was another bullish week for stocks and perhaps a move to a broader rally to lagging sectors like small caps and energy so watch the S&P500 equal weight ETF (RSP) up 2.96% for the week but only up 6.8% YTD.The S&P 500 is up 17.82% YTD and only 0.96% WTD.Slowing inflation helped with the CPI declining 0.1% to 3% on an annual basis with mixed results on te PPI up to a 2.6% annual rate. The XLV healthcare ETF was up 2.67% WTD and 8.7% YTD close to the high for 2024 not bad except for the huge gains in technology stocks. Healthcare stocks reporting earnings this week are Abbott Labs (ABT), Johnson and Johnson (JNJ) and UnitedHealth (UNH).
XBI Chart showing choppy rally off MAY bottom at $82 prior to ASCO.
Many of our large cap picks are at or near new highs: AZN, LLY, MRK, REGN, VRTX but take look at Abbvie (ABBV) and Astra Zeneca (AZN) for additions to your portfolio. MEDtech has also been a laggard so we’ll look to guidance from ABT this week.
Traders should focus now on SMID Life Science stocks while the momentum continues. JULY and early August also show good seasonality for biotech. As we have said before it seems easy to make profitable trades within days but volatility is very high so gains do not holdover months.
One of our top Life Science Mutual Funds is T.Rowe Price Health Sciences Fund (PRHSX) and it is up almost 12% YTD,
SMID LIfe Science Stocks for Momentum Traders
LONG: ABOS, ADPT, CPRX, CRMD, CYRX, NTRA, PACB, NVAX, VCEL, VCYT, XBI….PRHSX.
| P 1/20/23 | % Perf | 2/4/23 | 12/24/23 | 4/8/24 | 7/14/24 | |||||||||||
| Company | Ticker | $ | P | YTD % | YTD | %YTD | %MTD | trade | ||||||||
| P | P | % | P | |||||||||||||
| Acumen Therap | ABOS | 5.29 | 3.57 | -33.89 | 3.17 | -17.45 | 2.82 | -28.56 | 4.44 | H | ||||||
| Adaptive BiioTech | ADPT | 4.11 | 5 | 2.6 | -46.94 | 4 | -18.37 | 15.61 | H,$ | |||||||
| Avidity Sciences | RNA | new | 7/1/24 | 25 | 44.8 | 35.75 | 16.79 | – | ||||||||
| Catalyst Pharma | CPRX | 16.1 | 16.58 | -10.86 | 14.89 | 11.42 | 16.58 | -1.37 | 7.31 | H | ||||||
| Caribou Biosci | CRBU | 6.29 | 6.17 | -0.175 | 3.71 | -35.25 | 2.02 | -64.7 | 2.54 | S,$ | ||||||
| CorMedix | CRMD | 3.9 | 5.31 | 41.22 | 4.78 | 27.13 | -4.21 | H,$ | ||||||||
| Crenetics | CRNX | 42.12 | 18.38 | 53.67 | 50.84 | 12.33 | – | |||||||||
| CRSPR Therap | CRSP | 49.61 | -25 | 55.27 | 63.67 | 56.63 | 53.91 | -13.88 | 57.85 | -7.51 | -10.69 | H | ||||
| Cryoport | CYRX | 21.75 | -42.34 | 25.24 | 16.09 | -7.26 | 16.38 | 5.75 | 7.17 | -53.71 | -32.29 | S,L | ||||
| Cytokinetics | CYTK | 31 | 65.34 | -21.74 | 55.97 | -32.97 | 3.56 | – | ||||||||
| Denali | DNLI | 22 | 19.21 | -9 | 22.86 | 6.52 | 6.13 | – | ||||||||
| Exelixis | EXEL | 22.25 | 23.75 | -1.21 | 22.4 | -6.63 | 1.54 | – | ||||||||
| Evolent Health | EVH | 30.83 | 13.74 | 31.96 | 32.08 | 14.25 | 27.65 | -16.29 | 19.69 | -40.39 | -15.09 | S,L | ||||
| Geron | GERN | 3.19 | 9.24 | 3.22 | 2.29 | -5.37 | 3.79 | 79.62 | 4.71 | 123.22 | -7.47 | S,H,$ | ||||
| Intelllia | NTLA | new | 25.5 | 25.79 | -15.41 | -0.23 | – | |||||||||
| Immatics | IMTX | 9.3 | 9.9 | 13.66 | 10 | -4.94 | 12.7 | 20.61 | -3.2 | H | ||||||
| Natera | NTRA | 60 | 91.66 | 46.33 | 111.6 | 78.16 | -0.89 | H,$ | ||||||||
| Pacific Biosci | PACB | 11.29 | 55.68 | 11.58 | 8.59 | 5 | 1.47 | -85 | 1.68 | -82.87 | -19.15 | H,L | ||||
| Novavax | NVAX | 3.67 | – | 13.11 | 173.1 | -17.34 | S,H,$ | |||||||||
| Recursion Pharm | RXRX | 10.75 | 8.12 | -17.65 | 8.36 | -15.21 | -10.11 | S,$ | ||||||||
| Roivant | ROIV | 11.4 | 11.03 | -1.78 | 11.35 | 1.07 | 4.8 | – | ||||||||
| Supernus | SUPN | 40.3 | 12.3 | 41.61 | 29.23 | -18.05 | 30.07 | 3.9 | 28.62 | -1.11 | 5.69 | H | ||||
| Tempest AI | TEM | new | 7/10/24 | 39.75 | -1.24 | -1.24 | ||||||||||
| Twist Biosci | TWST | 18 | 3.76 | 34.03 | 31.54 | -14.53 | 53.44 | -44.98 | 1.91 | S,H,$ | ||||||
| 10x Genomics | TXG | 47.84 | 56.58 | 55.27 | 27.59 | -50.79 | 17.49 | -68.75 | -18.08 | S,$ | ||||||
| 17.18 | ||||||||||||||||
| Vericel | VCEL | 31 | 34.75 | 31.93 | 46.05 | 29.32 | 48.5 | 36.2 | 11..44 | H | ||||||
| Veracyte | VCYT | 24.89 | 39.43 | 26.67 | 28.27 | 19.13 | 19.31 | -29.81 | 22.75 | -17.3 | 3.08 | H | ||||
| SPDR Biotech | XBI | 86.99 | 14.75 | 90.39 | 87.62 | 5.57 | 83.49 | -6.51 | 98.96 | 10.83 | 5.48 | H,$ | ||||
| iShares BIO | IBB | 133.77 | -1.89 | 132.51 | -2.48 | 145.03 | 6.76 | 5.24 | – | |||||||
| HealthcareSPDR | XLV | 135.02 | – | 143.22 | 5.02 | 148.27 | 8.72 | 1.52 | – | |||||||
| wildcard | ||||||||||||||||
| ArkGenomics | ARKG | 35.28 | 32.81 | 16.22 | 23.18 | -29.35 | 25.34 | -22.77 | -3.1 | – | ||||||
| T.RowePrice | PRHSX | 86.84 | -3.32 | 92.49 | 5.22 | 98.41 | 11.96 | 5.34 | H,$ | |||||||