Resistance Is Now Support For Biotech
After slamming through the spike high a week and a half ago, the IBB has now pulled back to test the breakout. Bottom line, that resistance has now become support.
Most of the solar system is calling a bubble here, so its always good theater, and it makes every day interesting. A couple of things here can make you go to the bubble camp, or at east move the possibility from the back of your mind to the front. For instance, just about two months ago, Barclays “started” coverage on the biotech group. Really? Late much?
Also, your favorite degenerate stock trading etf, Direxion, started a new uber long bio etf last month (LABU). This a 3 timer. As if you don’t have enough risk trading a pre-clinical biotech stock with a billion dollar valuation already. LOL.
And this bad boy (MCRB) went public on Friday, it IPO’d at 18 and traded to 50. Evidently they analyze feces. Good times.
My takeaway is that the bulls will continue to play the momentum to the upside through year end and I think this will be supported by M&A. Probably a fair amount of it. The second half also offers the possibility of some big drug approvals as well.
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Resistance Is Now Support For Biotech
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