Biotech Starting to Become a Nail-Biter

I don't know about you, but the continued weakness in biotech, regardless of the FDA approvals or the earnings boosts, is starting to get me concerned about the group. Remember, in the span of two weeks we got an FDA approval of Tysabri, good for Biogen (BIIB - commentary - Cramer's Take), and we got a nice earnings talk out of Genentech (DNA - commentary - Cramer's Take).

And what happened? They moved; nothing else did.

I am more concerned than ever because I have seen Cephalon (CEPH - commentary - Cramer's Take) fall 16 straight -- and using basketball terminology, a la the weekend's festivities -- unanswered points because of a hearing later this week about its new drug, Sparlon, and increased risk of suicide. I am beginning to believe that unless we get a takeover bid in this group -- Schering-Plough (SGP - commentary - Cramer's Take), are you listening? -- we may not see a rally. I am particularly concerned, as I mentioned earlier on Street Watch (click here to see the free video), that Amgen (AMGN - commentary - Cramer's Take), which has been a monster buyer of its own stock, simply can't get off the dime at all.

Why does it matter?

Because a real bull market has to include this exciting group, at least to my way of thinking.

Perhaps, like the decline in Broadcom (BRCM - commentary - Cramer's Take) -- mercy me, Marvell (MRVL - commentary - Cramer's Take) didn't go down today -- this is all just catch-down, the other side of catchup, by the big caps and the financials.

Right now, though, I'm perturbed, and it ain't just Action Alerts PLUS, my charitable trust, talking.

Random musings: I am surprised that coal has hung in there as long as it has, given the decline in natural gas. No easy shift from coal to natural gas, but they are usually somewhat arbitraged. I believe that the coal group rests or goes lower here.

At the time of publication, Cramer was long Cephalon and Schering-Plough.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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