Halozyme Therapeutics Inc (HALO)

[Fred Kadiddlehopper]

Get ready to bounce - maybe.
From Marketwatch
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Does October offer up more opportunity than we realize? Perhaps so, says our call of the day from MacroTourist newsletter editor Kevin Muir, who highlights seemingly little known selling of “losers” by mutual fund portfolio managers late in the month.

As Muir explains via some broker pals in the know, all U.S. mutual funds must have an October year-end, and a settlement lag made Wednesday the last day for any transactions to be included in that 2021 tax year.

He notes that biotechs are among the stocks that seemed to be getting the chop, with the Nasdaq Biotech Index NBI, -1.63% up just 3% year to date — down 3% this month —- against the Nasdaq Composite’s COMP, +0.00% 18% gain.

But Muir also thinks those managers may be throwing out decent opportunities for others to catch. Here’s what he found after crunching some numbers on the iShares Biotechnology ETF IBB, -1.56% : “With an average return of 3.78% over the past two decades of Novembers, that’s a rather admirable performance record considering it also includes the usually brutal 2007/8,” says Muir.

What that kind of selling could do is help “create a seasonal tendency for this index to bottom into the end of the month when mutual funds flip their books to the next tax year,” he says, adding he’s going long on this under-the-radar trade that could be poised to rally next month.
https://www.marketwatch.com/story/fund-managers-are-tossing-out-their-losers-here-are-the-bargains-investors-might-not-want-to-miss-11635419238?mod=home-page
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This could explain the recent weakness.
Good luck!
-Fritz