I don’t care how many cures for cancer there are in development. Nothing warrants this sort of run in biotech, with the sector now up 31% for the year. More than 15 biotechs are up double digits today, led by gains in JUNO, KITE and FOLD. Looking at the sector makes you want to go out and pick the next one, laggards. For example, AGIO was down for the year, until today. KITE and BLCM were lagging, not anymore.
I took this overzealousness to blow out of my NRDM position, a position that I managed to turn a 30% loss into a 20% profit through sheer hard headed averaging down. I got lucky and now I am hitting the bricks.
I will keep the other medicine man stocks in my portfolios because they are real companies, with real drugs, heading higher. SGEN, ICPT and JAZZ are my largest biotech holdings. GILD and AMGN are my largest drug holdings and quit calling them fucking biotechs. Their market caps are upwards of $100 billion. Sure, I’d love to grab one today and sell out with a 30% profit tomorrow. But The PPT Exodus hybrid chart is at the very top end of the range, a prelude of some selling to come.
One day this sector is going to blow up and kill a bunch of people. Don’t think it can’t happen to you–because it can and it will.
With some of the NRDM proceeds, I added to BABA and MUSA.