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Very Little Bounce In Biotech As ASCO Approaches

|Includes: iShares Russell 2000 ETF (IWM), XBI

ASCO Abstracts Are Not Creating Bullish Backdrop

Technicals Are Extremely Weak-Risk Off

Most oncology companies presenting at ASCO have released information on clinical data that will be presented at ASCO beginning May 30. Major biotech indices are holding the April 15 bottom but mid and small cap biopharmaceutical companies continue a weak trend in Q2. The Russell Small Cap ETF (IWM) is down 5.84% YTD and 5.79 % YTD and over the past 5 days they are both tracking downward. The XBIis down 4.5% YTD after being up 30% at the peak of Q1! Our screen showing over 50 mid and small caps is down over 6% with only two stocks up.

Smaller cap movers on the downside with one hour of trading to go are: AGIO down 8%, ALNY down 6.7%, CLDX down 10.4%, ICPT down 10.2%, ISIS down 5.4%, PBYI down 8.7% and SRPT down 3.3%

In our previous posts over the last 60 days we urged investors to go to 30% cash in life science portfolios and overweight large caps. Our favorite ETF is FBTdown 2.28% today and up 7% YTD. Rayno Life Science large cap picks are holding up better : AMGN BIIB,GILD.

...Update after the close today...

Disclosure: I am long CLVS, GILD.

Additional disclosure: Long FBIOX Fidelity Select Biotechnology Fund