Subscribe to The Free Market Chronicle and join the 2,712 subscribers getting it for FREE!

Biotech Stocks May Have Finally Been Unleashed

Michael Kramer and the Clients of Mott Capital Own CELG

[widget id=”text-19″]

Stocks continued to move higher, led by the Biotech’s, which were up by about 3 percent. There’s something we haven’t said in a long time. The highly anticipated speech regarding drug prices by the President didn’t seem to be as bad as many had feared. Increasing competition, deregulation, cutting out the middlemen, is at the core of the proposals, based on my interpretation.

The drug pricing overhang had plagued this sector since September 2015, when Hillary Clinton made it a political point in the race for President. If this is the worst of it, I think the group might have much further to rise. Companies like Celgene, Gilead, Biogen, and Amgen are all trading at some of their lowest earnings multiples in years. Albeit for good reasons in some cases, but some of the valuations seem excessively low.

The details aren’t fully known yet, and what ends up getting put into law may be very different. But just knowing the blueprint for how they plan to tackle drug pricing might unleash the sector from the shackles of the past three years.

I think the group is likely heading higher.

[widget id=”text-22″]

S&P 500

The S&P 500 continues to rally, and finished near the highs at 2727, up about 2.5 percent. The setup continues to look strong.

[widget id=”text-16″]

Amazon

Technology stocks continue to look strong as well and so do consumer stocks, even though Amazon still didn’t break out. $1620 is proving, for now, to be tough for Amazon. Now that I’m calling for it to rise, it will probably go down! Ugh. We shall see.

[widget id=”wordads_sidebar_widget-41″]

Nvidia

I’m surprised Nvidia was down today. But I also do not think today’s price actions mean the stock is going lower. Shares held firmly above support around $253. The results were stunning, and this probably keeps working higher.

[widget id=”text-28″]

Amgen

Amgen shares continue to look strong as well, with a well-defined double bottom, and what looks like a solid path towards $178 to $180 range.

[widget id=”wordads_sidebar_widget-41″]

Gilead

Gilead also looks as if it could see a rise to about $72.

[widget id=”text-22″]

Biogen

Biogen also looks like it is on the cusp of a big breakout.

That is going to be it for today.

Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets

Just $200 Per Year – Get Your Free 2 Week Trial

Recent Videos:

The Setup In Stocks Continues To Improve

Getting Long Apple

A Rise Back To 2,800 On The S&P Is In The Works

Why It Is Time To Dump Starbucks, Plus A Look At ACAD

The Market Continues To Sink

It’s Back! Apple Investors Are Worried Once Again

A Review Of Netflix, IBM And Earnings Outlook

Free Articles Written By Mike:

Broadcom Traders Bet on 12% Rebound

Costco May Plunge 11% as Growth Slows

Square’s Stock Seen Rising 12% By June

Disney’s Stock Is Poised to Rise By 10%

Gilead May Rebound By 12% Short Term

Tesla Stock May Break Out, Fueling a 10% Increase

Alphabet’s Battered Stock May Jump 7% Short Term

3 Overvalued Stocks That May Fall Sharply

3 Tech Stocks Nearing a Breakout

Roku’s Stock Faces Huge 17% Price Swing on Results

Nvidia’s Stock Poised For Big 8% Jump On Earnings

Amazon Traders Bet Stock Will Rise 12% Further

Microsoft Bulls Look for More Big Gains

Why S&P 500 Stocks May Rebound 6% Short Term

Chipmakers May Soon Rebound to New Highs

Biotech Stocks Set to Breakout

Join our 2,712 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe

Photo credit via Flickr

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

Tags: #biotech #amgen #gilead #biogen #technology #amazon #sp500