The biotechnology sector began 2012 with an incredible price thrust supported by obvious heavy buying volume. Although they have cooled off at various times as the market has corrected, the IBB sector ETF remains not far from all-time highs. Usually, when a sector starts the year on a tear and holds most of those gains during the inevitable peaks and valleys of the market, you see a secondary move later in the year.
A few weeks back, one of the few long setups I posted was Seattle Genetics, a biotech taking its city’s namesake. While Seattle no longer has the NBA’s Sonics, who have departed for Oklahoma City and are now headed to play for a world championship, they sure appear to have a champ in SGEN. If SGEN can behave this way in a correction, think about how it, and many other similar-looking biotechs, can act when we see another uptrend. The weekly chart below notes the massive, high volume breakout this week. Unlike many damaged stocks merely bouncing back to logical resistance areas, the biotechs continue to display strength.
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Do they make kawfee[sic]?
some of that too
KD is going to displace LB this year as reigning monarch of the NBA.