Still a Bit Early, But I Think the Biotech Rip Is Real

A couple of things get me bullish again on biotech, or “the IBB”.  First of all it broke above a downtrend line that has been in place since August (see chart below).  That’s a good start but that needs to hold.

Hedge funds are under -invested and are losing money. Biotech is  hot money space, so they will go for alpha, so utilities or energy wont get them there.

Bases have been building since August, many are turning up and some are breaking out from those bases.

When I see names like REGN, AMGN, BIIB, CELG UP 2.5 to 5.0 % today, it gets me interested.  Yesterday we added a bunch of new names in the space. MYL , PACB, RLYP and others.

I like the action and I like the next two weeks. Turkey season is good.

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