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Biotech Stocks On Pace To Snap 8-day Win Streak As Warnings Abound
Actually days like this help shake out some of the weak sisters , and short-term investors taking porfits. Long-term I'm still very bullish on biotech's & general healthcare. Regards, Ted
@Ted Agree. A blip right now. Memory recall (semi-valid) from last Thursday; SBIO was up about 3.65%, gave most of that back on Friday when other areas were stronger. Down about 1.8% as of this pre-noon write. Note that SBIO are baby bio-techs and likely not reflected within the overall bio area as with your holding of Fido bio fund, which holds more of the established companies. Watching; but we do not currently have any holding in SBIO. Thinking we'll still make some more $'s in this area, eh? Regards, Catch
Biotech has been leading the market higher and M&A activity in the sector has been hot. It has been tracking the seasonal pattern quite closely and now that seasonal period is ending we have been taken profits as the sector hits new highs.
Technically, the sector looks extended and overbought and everybody is talking about it at the moment. It may still go a bit higher, but last year its biggest pullback was in the spring, correcting about 20% in March and April. We’ll look to pick it up again after a correction.
One has to presume anything is possible (with any investment sector). But, as I am not a qualified forecaster; I am only able to observe and know that money (bond issuance) is still cheap for M&A; but one has to monitor their investment sector for price actions.
Comments
Agree. A blip right now.
Memory recall (semi-valid) from last Thursday; SBIO was up about 3.65%, gave most of that back on Friday when other areas were stronger. Down about 1.8% as of this pre-noon write. Note that SBIO are baby bio-techs and likely not reflected within the overall bio area as with your holding of Fido bio fund, which holds more of the established companies.
Watching; but we do not currently have any holding in SBIO.
Thinking we'll still make some more $'s in this area, eh?
Regards,
Catch
http://jeffhirsch.tumblr.com/post/114162634923/time-for-tactical-seasonal-sector-maneuvers
This is what is said there:
Biotech has been leading the market higher and M&A activity in the sector has been hot. It has been tracking the seasonal pattern quite closely and now that seasonal period is ending we have been taken profits as the sector hits new highs.
Technically, the sector looks extended and overbought and everybody is talking about it at the moment. It may still go a bit higher, but last year its biggest pullback was in the spring, correcting about 20% in March and April. We’ll look to pick it up again after a correction.
Do you agree with it?
Wasn't that when Yellen said it was overvalued?