Biotech Rests, the Financials Stink and Europe Is Heavy

icpt

ICPT APPROVED

The FDA’s Gastrointestinal Drugs Advisory Committee votes 17-0 backing approval of Intercept Pharmaceuticals’ (ICPT) obeticholic acid (OCA) for the treatment of primary biliary cirrhosis

Its nice when they work, and its even nicer when the FDA plays nicely in the sandbox. Today ICPT got approved for a big drug. The stock was halted all day as the FDA did their dog and pony show, but I would expect to see, at least I hope so, another move higher tomorrow.

We bought this one at 133 earlier in the week and its already trading at 164.  Maybe it will add on a another 20 pts. tomorrow. We shall see.

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We saw some weakness kick in today as the indexes traded down 1-1.50%.  Not sure we topped here, I doubt it, but some sectors are sucking and can go lower.

One would be the financials, I hate them as you know and think they are dead money and stupid money right now.

XLF hit some resistance and got rejected. Watch to see if it doesn’t pick up steam on the downside.

xlf

Another area that appears to be rolling over again is Europe. As you look at your charts tonight look at  EWG, EWQ EWI and EWP.  As  result I still love EPV (short Europe) and if your not long you may want to add a little.

epv

Biotech (IBB) digested gains today and still looks fine.

ibb

The continued rise in Japan’s currency this year, despite aggressive stimulus measures from the Bank of Japan, has also raised investors’ concerns about central banks’ ability to stoke growth.  It’s starting to make no sense and things seem ass backwards to a degree.

fxy

Earnings have started (no reports tomorrow), but get ready for next week because it will get fast and furious.

Current P&L for April.

See you in the morning.

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