Biotech Snapshot During A Rally Day: No Summer Doldrums…

Biotech stocks were mixed trading closer to the flatline after the close on light summer volume. Macro issues such as drug pricing, trade and the Fed remain a concern.

Well known gene editing stocks (CRSP, EDIT, NTLA) are volatile and near a 30 day bottom. EDIT trails others down 16.5% YTD, NTLA up 27.8% YTD, CRSP up 90.5% YTD. We have traded EDIT and NTLA but await a new entry point. These stocks are still off their highs hit before damaging scientific article on JY 16 highlighting unknown risks of the technology.

Nasdaq at 7915 Going for 8th Day of Gains on Earnings Driven Rally

Gene Editing Stocks Very Active and Volatile

Biotech and healthcare stocks were green today and there were bullish analyst comments as well as big movers. The Canaccord Genuity Growth Conference yesterday could be a factor in the rally. The bull market is intact but we would just hold core positions anticipating a Q4 rally. We are just a tad off 2018 highs on the FBT and IBB with all large cap earnings reports in. The more volatile XBI is actually down 3.9% over 30 days.Meanwhile large cap drug stocks continue to rally and the healthcare (XLV) is up 4% over 30 days, off May lows and 7.8% YTD, very close to January 2018 highs of $91.5. The FBT is up 19.8% YTD.

  • Mid-caps are solid green except LOXO down over 3% after earnings release but up over 91% YTD!
  • Among Mid-Cap Watch List  winners: ALNY up 3.3%, NKTR up 1.5%, SRPT up 9.8%, TSRO up 3% etc.
  • XBI up 0.8% coming back a little from July losses
  • Large caps held with rebounds in ABBV, CELG, GILD, IBB at $119.
  • Gene Editing stocks bounce,active and volatile: CRSP up 1.8% at $49.95 (Cramer call to take profits?), EDIT up 4% at $28.7, NTLA up 4.3% at $28.
  • The worse trade of the week is Congressman Chris Collins,NY long and insider trading short of Innate Immunotherapeutcs, Ltd.(IIL.AX) an obscure Australian Biotech firm.


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