But Early Attempt at a Broader Rally Fades

Many biotech stocks were in the green today showing resilience in the face of an emerging financial crisis in Europe and volatility in China markets which were off over 4%. Large caps held up well mainly in the green as did all major ETFs. The XBI took off early could not hold then retreated to the flat line with a boost at the close. The NASDAQ was off 0.34%.

Some high profile mid-caps were strong: Biomarin (BMRN), Clovis Oncology (CLVS), Incyte (INCY) were up over 2%; Immuno-oncology stocks saw a lot of green. Overall the biotech sector had a good day even though healthcare stocks were mixed.

The near-term drivers will continue to be M&A with early results from earnings in the larger caps and diagnostic stocks. The trend remains up just off June all-time highs so this is a good time to sit on existing positions but not take on additional risk in light of macro news. Technicals rule.