Biotech Boogie:
The group via the XBI seems to be gathering some steam as it demonstrates it is not afraid near the very round par number. It is above the double bottom pivot of 97.74, albeit fractionally so, and is higher by more than 1% this week, after rising 2% the week before, and 7% the week prior to that. It is gathering courage as it nears the round 100 number which has been pesky resistance. There have been some interesting developments in the space, with Warren Buffett making a purchase of BIIB. The chart is showing nice momentum, but it seems like an odd play for him, as I remember him a few years back saying he only invests in things he understands inside and out. It has been outperforming AMGN, which has been the king of the “big four” (CELG was bought out and GILD has been dead money for a few years). Bears will probably be proclaiming the Oracle’s venture into the space is a sign of a top. As always ignore the chatter, and focus on PRICE action.