On Monday of last week the biotech sector ($IBB) opened higher, but then never really saw an uptick after that. By the end of trading on Thursday, things looked bad. Very bad. Stocks like Biogen ($BIIB) managed to lose almost 30 points for the week. Same for ($JAZZ).
At one point $IBB had lost about 17 points for the week, and on Thursday, the $IBB lost its 50 day moving average. However on Friday, the etf managed to take back its 50 day ma. and the volume was also decent.
The Friday bounce in the biotech sector was important and also much needed. IBB will need to hold Thursday’s low for the bulls to stay in charge I think, and it may be tested this week as some big earnings reports in the sector will be released. If earnings cooperate, then I think you can look at Thursday’s low as a decent short term bottom.
Look for earnings in the following biotech names next week:
$GILD – Wednesday after close
$BIIB – Wednesday before open
$CELG- Thursday before open
$ALXN -Thursday before open
$ILMN – Wednesday after close
$ITMN – Thursday after close
Good luck next week. Long BIIB, JAZZ
Premium subscriptions are available here.