Time To Pay Attention To The Most Hated Sector Of 2016
I know we’re all suppose to hate Biotech stocks ($IBB) in 2016 but there are a lot of individual names firming up in this sector in what I would consider actionable bases.
Let’s first take a look at the $IBB itself. We’ve been moving sideways trading in a range now between 245 and 265 over the past couple of months. Price currently sits right in the middle of that range and with flat moving averages and a prior intermediate downtrend it’s tough to really get behind this sector from this picture alone.
But if we start to drill down and look into some of the individual names that make up this index, we can actually see that there are a number of interesting looking stocks that are close to breaking out or have just recently broken out. Take a look at the names below.
When I see a large number of names in a sector start setting up like this it always grabs my attention. Particularly if the heavy weighted components in this index like $AMGN $BIIB $GILD are not out there leading, the index itself could look a bit more sluggish then what’s really going on under the hood.
With the $SPY and $IWM pulling back now a few days in a row, perhaps early next week if we see a bounce, this is a sector that could surprise.
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