Mature Biotech Blues:

Biotech players such as REGN, GILD and BIIB all now 16, 31 and 34% off their most respective recent 52 week highs. Those are just the most recognizable. Sure there is BMRN, which has been unable to penetrate the round 80 number to the upside, and the fact that it has been unable to regain any of the 35% plunge from 8/19 is quite alarming. The longer it trades sideways the more likely the next direction will be another leg lower. VRTX is 31% off its annual peak, although it seems to be finding a floor near the very round 200 figure. SGEN declined 11 of 13 sessions coming into the week. I think one gets the picture. Below is the chart of another former leader in NBIX. It now trades nearly 30% lower from its late July highs, that began the week ending 7/24 with a WEEKLY bearish engulfing candle that fell more than 4%. The stock has risen just 3 weeks since then, and one should remain cautious as long as it swims underneath the 200 day SMA.

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