NASDAQ leads -up 0.6% to 4787
The October correction of ~7% was a “headfake” as macro events scared many investor away
Technology and Healthcare Stocks Lead The Way
The healthcare SPDR (XLV) is up 24.5% YTD and the technology SPDR (XLK) is up 18% YTD.
Biotech stocks are at new highs with all major ETFs rallying in November. Our top ETF pick FBT is up 46% YTD.The broader NASDAQ based QQQ is tracking the rally off November lows up 20% YTD to $105.5. The chart broke out of channel on Nov. 1.
Seasonality favors biotech and tech stocks through January although it appears that stocks are getting ahead of themselves. But we already tested intermediate lows in mid-October and we are above the February highs.
Rayno Life Science motifs are tracking as follows YTD: large caps up 33.7%, mid caps up 25%, small caps up 40% YTD after a blow off top in February.
Speculation and volatility are increasing in smaller cap names. Traders rule!
Rayno Diagnostics and Tools Stocks
We published our portfolio update on 11/24 (above). This sector did not do as well as biopharmaceuticals but there were some big winners. The smaller cap stocks did not perform well because of revenue shortfalls. The only re-iterated trade we recommended among this group was Pacific Biosciences (PACB) in mid $5s and it is now at $7.
The best performers were Exact Sciences (EXAS) -now $2.1B market cap, Illumina (ILMN) and Abaxis (ABAX). All of the stocks on our list can be held but caution is urged on new buys. CardioVascular Systems (CSII) made a nice move today up 4.85% on no news but recent announcement on Q1 2015 revenues grew to $41.4M a 39% increase. NanoString Technologies (NSTG) made a 2% recovery to $15 from an oversold condition.NSTG hit a high of $22.40 on March 12 so could be a good short term trade going into January.
Other nice winners YTD are Cepheid (CPHD), Hologic (HOLX), Sequenom (SQNM) .
Rayno Biopharmaceutical Stocks
No change in our core portfolio except smaller cap trades.
About Raynovich Rod
Rod Raynovich is an experienced biotech investor an analyst with a focus in vaccines, tools, IVD’s and biopharmaceuticals. Prior to starting Raygent, he was a former technology transfer officer for UCLA and he has held various executive positions in the biotech and pharmaceutical industry, including senior positions at NASDAQ listed medical device companies. He was a founder and a former director of EPIX Medical. Prior to that Mr.Raynovich held management positions at JNJ and Abbott.
View all posts by Raynovich Rod
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