Biotech Green Shoots?
The XBI rests 5% off most recent 52 week highs, and is enjoying a sturdy start to the week up better than 4%. The ETF the week ending 9/18 also recorded a robust advance of more than 11%, but it was unable to follow through, with the last 2 weeks being down by a bit more than 5%. If one wants to take the optimistic view, it is digesting the big gain, and perhaps looking to tack on to the upside going forward. Mondays move seemed to be courtesy of REGN’s publicity over the weekend in regards to the President. If this move higher for the overall space is it speaking to clues what will occur with the election in November? There has been some noticeable bifurcation within the biotechs with very stern selloffs in names like NBIX and BMRN, with the former being rejected near the very round par figure Tuesday. TWST and NVTA continue to act in stellar style. Below is the chart of the XBI, and many have given up on it, but it seems to hang around and keep escalating the proverbial wall of worry.