Biotech Backbone:

The biotechs have gotten their groove back. It was a short and swift pullback during a 9 of 10 session losing streak between 1/17-31 (8 of the 9 days CLOSED in lower half of daily range). This week is demonstrating nice follow through, after last weeks 7% advance, its strongest since the week ending 6/21/19. Bulls did not forget the 12 week winning streak to close out 2019, the weeks ending between 10/4-12/20/19, that rose by a combined 32.9%. It has its work cut out for it as it approaches the very round par number, which was formidable resistance dating back to the summer of 2018. The fund is finding a wind behind its back as top components like NVTA BIIB and VRTX rise in robust fashion. Of course more conservative investors prefer the fund for diversification, as NVTA cratered 50% between last August-November. BIIB last week recorded its second 25% plus WEEKLY gain last week, with the week ending 10/25/19 rising almost 31%.

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