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Subscribe →Equities had been posting modest gains until the end of the day saw a mild sell-off across the board. Navigating The Market · By Michael Kramer Independent macro and options research, published every trading day. Daily written analysis covering gamma exposure, dealer flows, key levels, and the macro drivers moving markets. Includes full video access. Recent Subscriber Analysis
Biotech continued to lead the market higher once again, with the IBB and XBI both up over one percent.
Why The Biotech Jump?
The markets seem to finally realize any changes to drug prices will come through forms of deregulation and not price control. No surprise here. Like him or not, President Trump is a free market capitalist. Price controls always seemed like the least likely scenario to us.
Action within Biotechs was more mixed than yesterday’s one-way up direction.
Rates
The yield on Treasuries remains in its recent downdraft. The Market Chronicles · Video Membership The daily market commentary, delivered in video. Same daily market analysis, in video form — available to YouTube channel members only. Latest Videos
Dollar
It is beginning to look like the Dollar may be finding a bottom, with support around the 97 level. On the far right of the chart, you can see the makings of a reverse head and shoulder, suggesting we could see strengthening in the Dollar over the next several weeks.
NXP/Qualcomm
Why Qualcomm May Have to Pay $45 Billion for NXP
In the Qualcomm/NXP article, I drew a very strong argument for why Qualcomm may have to increase its bid for NXP. Valuations for the semiconductor sector (SOXX) have strengthened significantly over the past year, as the global economy has been picking up. Qualcomm has been running continuous tender offers over the past several months with each period drawing fewer shares than the previous.
AVGO PE Ratio (Forward 1y) data by YCharts
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Michael Kramer and the clients of Mott Capital Management LLC own shares of NXPI and SWKS.
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