Update After Friday Close:
Major losers among mid caps on 2/14 were: PBYI, PCYC, VRTX down about 4%; ALNY, CBST, INCY, MDVN, NBIX, SGEN and XBI down about 2-3%. Watch potential double top in XBI near term.This is a good time to look at your life science portfolio and take profits to 15% cash.
Profit Taking On High Fliers- INCY, MDVN, PBYI, XBI
Agilent(NYSE:A) Growth Slows
NASDAQ Flat at 4234 12:15p EST
After hitting new highs this week biotech stocks are in a wave of selling so watch technicals and volume. The small cap, speculative weighted XBI ETF is down 1.81 % after an early reversal off AM Valentine's Day highs. The "equal weight" holdings gets re-balanced quickly but many of the XBI stocks are down this week and today: ALNY, GALE, ICPT, NVAX, PBYI, SGMO etc. -see detailed holdings. The IBB is much less volatile than the XBI due to more concentrated holdings of large caps.
There is a lot of red within the Rayno Biopharmaceutical Portfolio such as : ALKS down 2%, CBST down 1.9%, GILD down 2.2%, PCYC down 2.9% and SGEN down 3%. BIIB is stable up 0.34%.
Most mid and small cap biopharma stocks in our index are red except ACHN, ARIA , GERN and THRX.
In the tools/diagnostics sector and possibly a bellwether Agilent (A $56) is down 6.7% on slower revenue growth and guidance.
Earlier this week we urged a life science sector weighting to 15% cash due to huge moves in January.Update after close today.
Disclosure: I am long ACHN.
Additional disclosure: Long Fidelity Select Biotech Fund (MUTF:FBIOX) and short individual biopharma stocks on a daily basis.