XBI up 19.2% YTD
Q1 Earnings Can Pivot Sector: Biogen Up Today on Earnings and Revenue Beat
Biotechs are running again taking the cue from Nasdaq which is up 3.44% in April after a brief mid-month sell-off. Biotech stocks rallied from global macro concerns which has dampened investor enthusiasm over the past two months. Political risks overwhelmed sentiment last week with the Trump agenda delayed, North Korea war talk, and the persistent malaise in Syria and the Middle East. But with Emmanuel Macron, a centrist candidate winning the first round of the French Presidential election investors found a way out of the gloom and bought stocks and sold gold with risk back on.
The biotech sector had a rocky ride in April briefly touching below 60 day SMA support levels at mid-month but now is trying to get closer to mid-March highs.The healthcare sector overall (XLV) is still up 8.4% YTD despite negative opinions about drug pricing and loss of patients for “repeal and replace” the ACA.
The Rayno Biopharmaceutical Portfolio performance was outstanding on a year to date basis and since inception.
Top winners since inception are:
bluebird Bio (BLUE) up 103%, Foundation Medicine (FMI) up 68% and Abbvie (ABBV) up 16%. We also called timely trades in two major ETFs the IBB and XBI which beat the overall market.
Top Losers since inception are primarily large cap biopharmaceuticals which have lagged the biotech market:
Gilead Sciences (GILD) down 20.9%, Bristol Myers-Squibb (BMY) down 7.7% and Amgen (AMGN) down 4%. But all three stocks are recovering in 2017.
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