Biotech Boomerang:
Back to back winning sessions from the XBI today were the first in nearly one month. The biotechs were not “immune” to the vagaries of the overall market slump. It is a well constructed ETF, as the holdings are nowhere near as dense up at the top, as say an XLE or XLY. The largest holding, REGN makes up less than 3% of the fund, and the stock has enjoyed a nice run since last September. It has however shied away from the very round 500 figure, as it was above on 3/17 and 3/19, but reversed 20 and 30 handles respectively too CLOSE beneath. BIIB is dealing with its own round number of 300 currently, and made a decent run Wednesday off the 200 day SMA. Below is the chart of the XBI and it backed off session highs today, recording a spinning top candle near an upside gap fill. GILD certainly contributed to the intraday lukewarm reversal for the XBI. The expanding ranges in that name, which had 7 point intraday ranges for 5 sessions in a row between 3/16-20 is a bit concerning.