IBB - Challenging 2016, Recovering 2017 and Resurgence in 2018

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

The Biotechnology cohort has finally broken out and reached a 52-week high while making up much of the lost ground during the pummeling from both sides of the political aisle during the 2016 presidential race. Tweets and excerpts from the campaign trail from Hillary Clinton, Bernie Sanders, and Donald Trump put the biotech cohort through the wringer via taking aim at drug pricing. The sustained sell-off lead to the entire cohort to sell off from all-time highs of $132 to $83 or 37% in only six months as measured via the iShares Biotechnology Index ETF (IBB). From February of 2016 through June of 2017 IBB traded in a tight range from $83 to $98 while Donald Trump continually fired shots against the healthcare sector. Any healthcare related stocks became volatile on the heels of any statement or tweet from Donald Trump. Shortly after the inauguration, Trump stated that drug companies are “getting away with murder” when speaking to the drug pricing issue. The previously proposed healthcare legislation never materialized thus a level of certainty has entered the picture, and the drug pricing threats are not perceived to be as bad as initially feared. Recently the index has had a resurgence moving to a 52-week high of $118 with a much clearer runway ahead as the political headwinds continue to abate. As the confluence of abating political threats, drug pricing certainty, merger, and acquisition activity ramps and continuity of the current health care backdrop, I feel the index has room to continue its upward trend and retrace its 2015 level of $130.

AbbVie Earnings Setting the Tone

AbbVie (ABBV) reported Q4 numbers that beat expectations and updated guidance above consensus estimates for 2018, and as a result, the stock moved up 14%. This earnings announcement stroked the entire biotech cohort and had pumped more life into the group that has seen a steady rise leading up to this statement. Other large-cap companies that have plenty of upside based on its multi-year highs include Celgene (CELG) which is off 35%, Regeneron (REGN) which is off 31% and Gilead (GILD) which is off 29% based on current prices. Even specialty pharma Allergan (AGN) is off a staggering 43% as well. All of these names may be due for a resurgence if quarterly results beat and guidance is raised similarly as AbbVie. Continue reading "IBB - Challenging 2016, Recovering 2017 and Resurgence in 2018" →

Stocks Fall As Interest Rates Rise

Posted on by The INO.com Team

Hello traders everywhere. The DOW, S&P 500 and NASDAQ are lower on the day and ending the week lower after the 10-year yield rose quickly to 2.84%, a four-year high. This will be the first weekly loss of 2018 and the largest weekly loss in over a year. Is that a signal of things to come in February?

The U.S. economy added 200,000 jobs in January, according to the Bureau of Labor Statistics. Economists had expected growth of 180,000. Wages, meanwhile, rose 0.3% last month, in line with expectations.

Stocks Fall Interest Rates Rise

The report sent interest rates higher. The benchmark 10-year yield rose to 2.84% on the back of the report, hitting a four-year high. Investors have been jittery about the recent rise in interest rates, worrying they may be rising too fast. On Thursday, the 30-year yield rose to 3.074%, its highest level since March.

The CBOE Volatility Index (VIX), the most widely followed gauge measure of stock market volatility, rose to 14.48, after having fallen in the previous two sessions.

Key levels to watch next week: Continue reading "Stocks Fall As Interest Rates Rise" →

7 Canadian Cannabis Stocks that Could Soar

Posted on by The INO.com Team

Analysis originally distributed on January 24, 2018 By: Michael Vodicka of Cannabis Stock Trades

There are fewer things that can send a stock soaring like a buyout. And right now - I see a wave of buyouts ready to pop off in the cannabis sector - and I want to show you how you can profit.

When one company buys another company - shares of the company being bought usually surge higher.

Let me give you a recent example.

On January 18, Celgene Corp. (CELG) announced it would buy Juno Therapeutics (JUNO), a promising young biotech for $85 per share - a 91% premium to its share price at the time of the announcement.

That sent shares of JUNO soaring 91% in just seven days - giving JUNO shareholders a big gain in a very short amount of time.

LL

Today - I see a big wave of buyouts coming down the pike in the cannabis sector and I believe it is creating another awesome opportunity for big profits. Continue reading "7 Canadian Cannabis Stocks that Could Soar" →

Freeport-McMoRan's Breakout Hits The Target

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Last February I called for a long position in Freeport-McMoRan Inc. (NYSE:FCX) amid temporary weakness within a consolidation phase. Later on in March when the expected weakness reached support I posted an alert for you to catch the opportunity and set the target area with a $19.78-26.30 range. At the start of this month, the initial target at the $19.78 level was hit, producing a 55% profit for the year. My congratulations are to all who took the longs!

I also mentioned Southern Copper Corporation (NYSE:SCCO) for those who prefer larger market cap companies. That trade produced a good profit of almost 39% in the same period. However, it doesn’t compare to the 55% profit from FCX even though it set the new record high at the $50.90 breaking above the previous long-term top ($49.82).

Below are the poll results where you voted for these two stocks last March. Continue reading "Freeport-McMoRan's Breakout Hits The Target" →

The Stock Market Sell-Off Continues

Posted on by The INO.com Team

Hello traders everywhere. The two-day sell-off continues in the stock market, and it is gaining steam as we head into afternoon trading. The DOW traded lower, as much as 352 points, hammered by a rise in bond yields and a decline in healthcare companies after Amazon, JPMorgan, and Berkshire Hathaway announced that they would form an independent healthcare company to serve their employees in the United States.

This announcement has caused a wave of panic selling in the healthcare sector with Cigna (CI) leading the way by falling over 6% followed by UnitedHealth Group (UNH) falling over 4% on the day. While there hasn't been a lot of information released, it indeed was shot across the bow of the U.S. healthcare business.

stock market sell off continues

The 10-year Treasury yield rose above 2.73%; it's highest level since April 2014. This rise is leading up to the Federal Reserve monetary policy decision which could help shed more light on the outlook for interest rates this year.

The Fed's ongoing two-day meeting will be watched for comments that could raise the likelihood of rates being hiked four times this year, instead of three, especially as inflation readings have firmed in recent readings.

Key levels to watch this week: Continue reading "The Stock Market Sell-Off Continues" →