Some Nice Biotech Movement

The stock market ended Tuesday on a mixed note with the Dow and S&P losing 0.5% and 0.2%, respectively, while the Nasdaq Composite (+0.4%) outperformed.

For its part, the Nasdaq spent the day near its early high thanks to solid gains among biotech names after Teva Pharmaceutical (TEVA 64.14, +0.85) offered to acquire Mylan (MYL 74.11, +6.06) for $82.00/share in cash and stock. The two names posted gains of 1.3% and 8.9% while the Biotechnology ETF (IBB 364.50, +6.55) settled higher by 1.8%. Furthermore, the health care sector advanced 0.7% and was the only sector with a gain larger than 0.1%.

Our new addition from last night, CARA triggered early this morning and had a great day +7.5%.  See chart below. See how it popped right out of that bull flag.  Nice when they do what they’re supposed to.

CARA

I also added ICPT long today during trading hours at the 288 level.

icpt

I also took partial profits in TQQQ and CYBR today.  Please check P&L for any changes.

See you in the morning.

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