Biotech Stocks off to an Early Lead in 2017
I like paying attention to what moves quickly out of the gate come the new year.
In 2016, we were in a spiral lower, so correlations were high and “sell everything” was the only thing we needed to know for the first 30 days.
This year, we’re in a stable uptrend and can make note of early out-performers for clues to new or persisting trends.
It’s only been two days but biotech stocks are already up nearly 5% and have cleared through December resistance around 275.
The longer term weekly chart tells a story of consolidation as we spent the entire year in 2016 trading between 245 and 295 , a 50 point 20% range.
If we can get a strong weekly close north of 275 that could pave the way nicely for a re-test of this long term $295 resistance.
Some of those big cap components that make up a large piece of this ETF like $AMGN $GILD $BIIB look equally encouraging for a bounce/move higher.
We hold no positions in any of the above at this time.
Thanks for reading and good luck out there.
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