Biotech Continues to Percolate

Dow: -66.90...
Nasdaq: +23.05... S&P: -2.63...

It was a down day with the exception of the Nasdaq which rose about a half percent.  Biotech was the leader and there were some nice poppers in the sector.  If you ask me, XBI looks like it getting ready for a move to all time highs.

If that does become a reality, then there should still be some amazing opportunities in the sector going forward.

As you know, I added INCY & RARE as new biotech longs late last week.  If RARE can get through 74-74 levels with some volume I can see a move to the low 80's.

INCY had a nice today and broke out of that pretty ascending triangle pattern I mentioned last week and the technicals look great.   INCY continues to get mentioned as a possible target of GILD. That's not why I bought it, but the other GILD target, VRTX, got expensive last week with their drug approval, so maybe INCY will become a more realistic target for GILD again.

RARE

Today I added BLUE to the P&L.  It made a nice volume bounce and closed above the 50-day moving average.

Here are a few names in bio that I am watching closely.

SAGE- this one broke out in June, pulled back, and looks like it may want to make a run at more new highs.

AGIO-If this one gets volume up and through the 60 level, then the old highs can get back in play.

GLYC- has pulled back from the May breakout but as you can see has held its rising 50 day moving average.

More names are setting up, so stay tuned. See you in the morning.