Are You A Trader Or Investor: Biotech Momentum Is Picking Up

By Rod Raynovitch of Raygent.com
Monday, November 20, 2023 4:21 PM EST

Dna, Genetic Material, Helix, Proteins, Biology

Image Source: Unsplash


Biotech Momentum Is Picking Up

  • Focus trades on SMID or speculative small cap biotechs.
  • Trade momentum stocks which are supported by technicals.
  • Lower interest rates is positive for biotech.

Earlier in 2023 we had a nice run in SMID biotech stocks. Most have since sold off but now we seem poised for a rally. We updated our WATCH list from earlier this year. Unless your healthcare portfolio was overweight large cap biopharma including Lilly or NVO you are underperforming the market. Healthcare and Bioscience Mutual Funds are trailing the S&P-500 and the Dow. ETFs have not helped as portfolio fillers but they can identify trends. We should play this rally out of a biotech bear market.

I will add new trades as they come up should market conditions look favorable.

Here are some assumptions for trading in Small Cap speculative biotech.

  1. The XBI is our bellwether for small cap life science stocks.
  2. Most of the stocks we are tracking and own have good momentum over past 4 weeks.
  3. Volatility is high on a daily basis. eg CRSP
  4. Seasonality is good through January.
  5. Small M&A deals are picking up.

    P 1/20/23 % Perf 2/4/23   11/18/23 Perf      
Company Ticker $   P % week P 4 wks YTD % REC*  
                     
Acumen Therap ABOS     5.29   2.28 -40.62 -57.78 1.5  
Caribou Biosci CRBU NEW     20.55 5.22 20.55 -16.88 1.8  
CRSPR Therap CRSP 49.61 -25 55.27 4.72 67.89 55.5 67.01 2.3  
Cryoport CYRX 21.75 -42.34 25.24 9.41 13.62 8.35 -21.5 2.3  
Evolent Health EVH 30.83 13.74 31.96 2.21 29.33 3.71 4.45 1.7  
Geron GERN 3.19 9.24 3.22 3.59 1.97 6.49 -18.6 1.5  
Hologic HOLX 79.66 22.41 84.68 2.28 71.87 4.16 -3.93 2.4  
Immatics IMTX NEW   9.3   8.68 -13.11 -0.34 1.5  
Pacific Biosci PACB 11.29 55.68 11.58 -1.7 8.4 2.31 2.69 2.2  
Quidel/Ortho QDEL 88.13 -11.56 89.7 3.93 66.25 -4.46 -22.67 2  
Supernus SUPN 40.3 12.3 41.61 2.29 27.43 5.7 -23 2  
10x Genomics TXG NEW   47.84   42.17 0.76 15.72 2.3  
Vericel VCEL NEW   31   36.58 2.55 38.88 1.5  
Veracyte VCYT 24.89 39.43 26.67 2.46 25.25 17.33 6.41 2.1  
                     
SPDR Biotech XBI 86.99 14.75 90.39 1.12 71.66 3.36 -12.46 n/a  
                     
wildcard                    
ArkGenomics ARKG NEW   35.28   27.57 7.07 -2.34    
                     
            11/18/23     5 yr  
iShares CoreS&P IJR         96.18 2.4 1.63 21.58  
iShares Russell IWM         178.29 1.91 2.25 17.34  
iShares BIO IBB         118.1 -3.31 -10 12.42  
NASDAQ-100 QQQ         386.04 4.85 45 35.54  
HealthcareSPDR XLV         128.25 -2.09 -5.59 39.34  
                     
T.RowePrice PRHSX         85.22 -2.08 -5.12 9.95  
iShares MED Dev IHI         48.67 5.41 -7.43 38.17

More By This Author:

Risk On For Biotech - Time To Trade The Small Caps
Healthcare Playbook: Hardly Defensive With A Covid Hangover In Biotech
Pivotal Week Coming Up: Big Tech Earnings, Geopolitics, Technicals, Treasury Yield...

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