Biotech Stocks

Biotech Stocks Monster Bounce Back, Plus Micron, Lam, Rates, and Oil

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Biotech Stocks Monster Bounce Back, Plus Micron, Lam, Rates, and Oil

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If you aren’t investing in Biotech, then you aren’t living. Yesterday, biotech stocks were getting smashed, and today was like yesterday never happened. Today the S&P SPDR Biotech ETF (XBI) climbed by over 2.5 percent, and the NASDAQ Biotech ETF rose by nearly 2 percent. Believe it or not, the two ETF’s are trading at levels higher than where they started the day yesterday. Go figure. You can’t make this stuff up.

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XBI Price Chart

XBI Price data by YCharts

It is worth noting that many of the stocks we mentioned yesterdays such as Neurocrine ($NBIX), Exact Sciences ($EXAS), Clovis ($CLVS), Amicus ($FOLD), and Exelixis ($EXEL) did not recover their losses. Because those stocks fell on fundamental reason, and while the charts for each still look intact, they do have further downside risk.

XBI Price Chart

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XBI Price data by YCharts



But there were plenty of big winners, today with Nektar ($NKTR) for one surging by nearly 19 percent. Have you seen the chart of this thing? Wow! It is up 191 percent since November 1, a company with valued at almost $11 billion market cap. I’m sorry, I wish I knew more about this business, but I don’t. Maybe someone could shed some light on it?


(Data compiled using Ycharts)


Bioverativ ($BIVV) jumped by nearly 7 percent. Cowen raised its price to $100 from $80, noting the company’s 2017 preliminary results, and 2018 guidance. Technically the stock looks like it has officially broken out, but be careful here, the market loves to play the game of fill the gap, and that means the stock could give back the gains to $56.50, before resuming its upward trend.



Alkermes shares jumped by over 5 percent today after the CEO was on a show called Mad Money with some other guy named Cramer (humor, it is ok to smile or chuckle). The stock looks like it trying to break out here, and it has plenty of things in the pipeline in 2018 to come.


On-Demand Content

In the premium video today, I talk about why the biotech sector’s hot run is not over yet, and two biotech stocks I like in 2018.

Tesla Stock Escapes From Model 3 Disaster – Premium Content

Apple iPhone Shipment Maybe Better Than Feared

Why Biotech May Outperform In 2018 

Thinking About 2018

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Micron shares just don’t look appealing here, after that monster beat and excellent guidance. The stock has struggled mightily to break out, and again it failed at $47. I have said this before, and I will repeat it, $40 is critical to this one. Break $40 and lower the stock shall go. 


Lam Research

Lam Research ($LRX) has performed well, and has solidified around support at $185-86, and is starting to make a nice move higher. The stock for now looks like it has broken a downtrend, with rising volume and rising relative strength, an increase towards $220 seems likely. 



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In my ten predictions for 2018 coverage, I said Oil was heading to $75, and today it got one step closer. The commodity broke out rising comfortably above $62. There is no resistance between here and $75. 



I also predicted 10-year rates would climb to 3 percent, well that just had a massive breakout also today. 

ten yearThat is, until tomorrow.

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Michael Kramer and the Clients of Mott Capital own shares of ALKS

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.

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Tags: #biotech #exelixis #nvidia #neurocrine #amicus #XBI #IBB #ALKERMES #LAM #micron #nektar


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