Winged Messenger
By Marc Dupée
Do you remember just a little over a month ago when
biotechs were making one of the strongest comebacks of any area–some stocks
rallied as much as 70%–after tumbling from autumn highs? The biotechs were one
of the most receptive groups to the Fed’s January 3, inter-meeting rate cut. And
now that ex-Fed official Wayne Angell is acting as the de facto inter-meeting interlocutor,
(just where does he get that 80% chance of an intersession cut, anyways?),
biotechs are again the first, fastest, and most powerful group to respond.
Human Genome Sciences
(
HGSI |
Quote |
Chart |
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PowerRating) is the biggest gainer
among biotechs, +5 13/16 to 54 5/8 and is getting additional attention after
saying that results of a recent heart disease treatment were encouraging. While
bottoms are difficult to pick, HGSI’s has had volume 30% greater than normal in
each of the past three sessions–all days in which it has rallied. Friday was
also HGSI’s biggest up-day in the past nine, a healthy (expansion bar) sign.
Today’s gap opening is also constructive.Â
Also in the health world, Laboratory
(
LH |
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Chart |
News |
PowerRating), in the
healthcare facilities business with the second largest number ofÂ
independent clinical labs in the US, has broken out to its highest level of the
year. It has a very respectable EPS of 89 from the Stock
Scanner on $1.3 billion in revenues, the type of numbers that get
institutions’ attention. Besides its existing profitable business, LH stands to
benefit from any increase in activity that could come from a rise in genetic
testing. Technically, LH broke out of a one-month cup-and-handle/Slim Jim/rising
triangle. Multiple-patterns often lead to strong moves and follow through. LH is
up 10.71 to 157.51.
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