Is Biotech Back On Track?


It looks like biotech may possibly have put in a short term bottom last Thursday. Still early but the action is good and the IBB has been up three days on a row.

The XBI was up 3.3% today and broke above downtrend resistance and blasted through its 50 day moving average.


The jury is still out on this group and we’ve been head faked before, but this time down at these levels, the technical look much better than in the past. As you know I add BIN yesterday and I am looking at a few other stocks in the sector. One name that I’m adding tonight is XON.

Buy it at the 40.25 level. Target 44-45


Sectors are still rotating, but things look really stretched in some areas, so tighten your stops and trade smaller as we approach nosebleed levels.

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