Biotech Bountiful:

The XBI continues its ascent higher as it has advanced more than 6% this week so far, breaking out above a 3 week tight pattern, as the last 3 weeks all CLOSED very taut, within just 1.15 of each other. Keep in mind that type of PRICE action often leads to very powerful moves, especially at all time highs. The top components within, have made some dizzying moves with NVAX up another 26% this week, after the week higher ramped up by 74%, not a typo. In the opposite direction the second largest holding in VXRT rose 67.8% last week, and this week has plummeted 64% from the intraweek high with one day left. No wonder more conservative investors play the sub sector within healthcare via the XBI. Below we see the ratio chart comparing it to the XLV, and one can see how the biotechs have dominated the larger cap healthcare cousins. JNJ, the largest holding in the XLV at almost 10%, looks to be ready for a fifth tight WEEKLY CLOSE. PFE on the other hand is looking at a 7 of 8 week losing streak, and trades basically in bear market mode down 19% from most recent 52 week highs.

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