The political winds are freeing biotech from the shackles of the shorts today, and it's worth asking if we are simply in some rhythm where they go higher on an absence of tweets from Hillary Clinton and stump speeches by Bernie Sanders or if the possible running of Joe Biden -- no basher of drug companies to speak of -- is allowing for a renaissance.
Whatever, biotech is a pure leadership group in part because there are so darned many of them and in part because, when at their lows, a couple of them with earnings actually traded well below big-cap pharma on a 2016 basis.
Today's an emboldened day where the Nasdaq's off and running in part because of biotechs but also because of the bidding war for PMC Sierra (PMCS), the semiconductor network solutions company that got a second bid today, this one from Microsemi (MSCC), a cash-and-stock offering of $11.50 a share that trumps the bid Skyworks (SWKS) put in by a buck.
PMC Sierra, along with the always bubbly SanDisk (SNDK) and the newly cash-infused Western Digital (WDC), are all part of what some would say are old tech. Now, old tech gets a wake-up call on Thursday when Microsoft (MSFT) reports. The big focus will be on cloud -- hence why Salesforce (CRM), a putative takeover, keeps running -- but positive chatter about Windows 10 is going to make people talk about a troughing in personal computers. Hence why Intel (INTC) is nicely above where it reported the so-called disappointing quarter.
The run in SanDisk/WDC/PMCS is all part of the consolidation value trade that is running right alongside the biotechs and Amazon (AMZN), the pure growths. (Skyworks and Amazon are part of TheStreet's Growth Seeker portfolio.)
It's why the Nasdaq is leaving the S&P in the dust. Value and growth? It has it all ... at least for the moment ... as we continue to work off last week's overbought status.