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Biotech Sector Outlook (video + static charts)

A detailed look at the chart of the biotech sector ETFs: XBI, IBB & PBE as well as some of the leading stocks in the biotech sector. As this video went a bit longer than I anticipated, I decided to post the daily charts of some of the top individual biotech stocks in static format below.

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Apr 6, 2016 1:45pm|Categories: Equity Market Analysis|Tags: , , , , , , , , |4 Comments

4 Comments

  1. lee1 April 6, 2016 2:12 pm at 2:12 pm

    Thanks for this. Will watch as soon as I find some time.
    AFMD is not doing all that well today given XBI is up almost 6%. I recall often when XBI would be up 3% one could see AFMD up 10%. It keeps stalling out low 3.40s. IF XBI starts to pull back tomorrow and onward I see AFMD sub 4 shortly.

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  2. snipertrader April 7, 2016 12:55 pm at 12:55 pm

    Randy, Nice video and great analysis/perspectives presented. It’s such an important point you make about always keeping various time frames in view to scrub one’s assessment and positioning strategies on things. I agree with you that Biotechs are perhaps setup for the worst yet if/when markets resume to the downside. Most of them are also at extreme valuations to financial metrics due to their hyped run up during the bull. Perhaps longer term some Biotechs ( with the best financials and most stable pipelines ) will become solid investment opportunities in the future at lower valuations as that industry in general has much potential. I have noted Biotechs recently not because I believe they are positioned for a new bull run yet but simply to gauge under the covers action and potential shorter term opportunities to take advantage of as sector rotation occurs while they help to keep indicies aloft. Thx.

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  3. vickthomas April 7, 2016 1:45 pm at 1:45 pm

    Randy.. whats your take on this run-up? are you still holding on to the trade? there is resistance above at around 59.50 ish. With the weakness in the broad markets today, there is a good possibility for this closing below the 56.60ish resistance..

    just wanted to get your thoughts on this

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    • rsotc April 7, 2016 2:35 pm at 2:35 pm

      Vick- Yes, still holding the swing short on the biotechs (LABU). I closed out the daytrade yesterday for a loss as neither of those pullbacks following the 1-minute charge wedge breaks played out as far as I was expecting but all the reasons for a swing trade entry are still well intact so holding for now. Still leaning towards tucking those shares away as a multi-week or month swing trade, assuming that I’m not stopped out, but will depending on how the broad markets & the biotechs trading in the coming days, I might just close the trade on the first decent pullback, again, unless stopped out first (about 1.5 – 2% above yesterday’s highs).

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