I’ve been talking about biotech a lot lately as you know. As Willy Sutton said, you go where the money is. If you read last night’s post (and preceding analysis) you know that the XBI broke out yesterday. Today IBB added 4 bucks and is oh so close to breaking out. If Hillary can keep her trap shut, maybe we get there tomorrow.
Things started off today with AGN paying a 500% premium for a small biotech company, as a result, the animal spirits were released and biotechs everywhere were then rumored to be the next buyout candidate.
We are kind of overweight biotech now so this is good for us.
Today CLVS ripped 4 or 14% (up another 3 in after market) on take out talk. If you remember this is one of the reasons we bought it last week. The chart was perfect and that was the main reason.
TSRO (same drug space as CLVS) came close to tagging 105 today. CHRS finally woke up an may be ready to breakout.
JAZZ rested today, but is sitting on an amazingly bullish pattern right now. Even GILD took a paddle to the chest today and popped 3.5%. I’m pretty sue that one has dried out and bottomed.
ACAD ran 3.3% and finally popped out of that downtrend that I talked about in the Sunday video. This is a big takeout story along with the others.
So far so good.
Tomorrow we have Janet (Aunt Bea) Yellen with the microphone and the BOJ. So we will soon find out what’s baked into this market and what’s not.
I added TSE as a short today. We have a broken uptrend (yellow line) and a nice bear flag, so I’m rooting for the Apocalypse.
Get some rest.