Big Three Back?

Often we like to compare how the IBB and XBI are acting toward one another and this year so far has not been much of a contest. The IBB has more mature players in its top holdings with names like GILD and AMGN making up the top 2 components at 15% (other former top 3 player BIIB is the 8th largest in the fund at 3%). That mature feel has it lagging behind the XBI, and it is a good risk on gauge within the space. If higher beta plays like XBI are acting better risk is on and vice versa. Looking at the one and 3-month returns between the 2 and the XBI is clearly leading up 12 and 29% respectively with the IBB rising 8 and 14%. But that does not mean there is no potential within. AMGN is just 3% from its most recent 52-week highs and VRTX has now cleared the very round 300 number. Below is the MONTHLY chart of GILD and it sports a bearish descending triangle but keep an eye on the round 70 number in the near term as that would represent a break ABOVE the pattern and we know from FALSE moves come fast ones in the opposite direction.

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