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Industry Calls Archives: Biotech - December 2000
Biotechs
Thursday, December 29, 2000:  Overall market weakness expected.

 Thursday, December 21, 2000:  Overall market buy. Buy. This sector is sitting a little more than 5% off it's 6 month lows (which are at a strong support level). We do not see huge gains in the 

immediate future in the overall sector and would particularly stay away from genomics companies which are still making new 90-day lows (such as CRA and INCY), however, this area as a whole should do well in the near term, and there are opportunities for very quick gains in some of the lower price stocks (such as GLGC and HYSQ, also both genomics companies).

Monday, December 11, 2000:  Sell coming. We are looking for a pullback (near term, at least) in biotechs. We now have bearish signals on 75% of the stocks we follow, two-thirds of which we got today. This sector is up more than 20% since either our initial buy call on November 21 or our most recent market buy on the 30th. Many stocks, particularly in the genomics area, are up nearly 50% or more in the last week. Between the recent runup and the fact that the sector is now within about 5-7% of the resistance area it's been unable to overcome in recent months.

 

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