Best Week Of The Year For Biotech Stocks

Biotech stocks are leading once again, and having their best week of 2017, up 7.3% as an industry. Right out the gate $XBI & $IBB are leading, both up 2% to start the day.

Best week of the year for biotech stocks: up 7.3%$XBI @CNBC pic.twitter.com/rYQRZaLCBV

— Carl Quintanilla (@carlquintanilla) June 21, 2017

__

Here’s your morning sector breakdown showing Healthcare, Tech, & services in play today:

I’ll be back in a minute with some runners to watch for the upcoming day. Biotech continues to be where the action is….

Uber announces an option to “tip” to compete with rival Lyft for drivers. Riders will also be charged by the minute if they keep an Uber car waiting for more than two minutes, another incentive for the drivers. Here’s the latest:

SAN FRANCISCO — Uber is enabling passengers to tip its U.S. drivers with a tap on its ride-hailing app for the first time, part of a push to recast itself as a company with a conscience and a heart.

The tipping option, long available in the app of Uber rival Lyft, will be available beginning Tuesday in three cities — Seattle, Houston and Minneapolis. Uber plans to make it a staple in its app in all U.S. cities by the end of July. The other features will roll out in August.

The attempt to smooth over its sometimes testy relationship with drivers is part of a broader effort to reverse the damage done to Uber’s reputation by revelations of sexual harassment in its offices, allegations of trade secrets theft and an investigation into its efforts to mislead government regulators.

At least not today, with large moves found in one of Option Addict’s favorite solar names, $VSLR, and relative newcomer to the solar arena, $RUN. Sunrun, stock symbol $RUN, is currently breaking out on a weekly timeframe and is a thing of beauty, see chart below:

__

$VSLR just decided it wanted to go parabolic:

___

$TAN, the ETF that tracks the solar industry, continues to act bullish in 2017, now hovering above all major moving averages. Let’s see if the industry starts to get active here:

$FIT is active again amongst traders as the stock continues to teeter on the all important $5 threshold. In my opinion, if we breakdown below $5, we may see a $3 handle on this stock which will put this thing trading right at cash.

Apple’s iWatch is gaining momentum and superior to the fitbit on just about every level, except their active software. Fitbit is extremely easy to integrate in third party apps, which makes fitbit extremely useful on the corporate wellness side of things. Apple will eventually catch up, they are not there yet.

If I’m Samsung or Under Armour for that matter, I would find $FIT very attractive on a further decline. If Apple would somehow make a bid for $FIT, which also makes perfect sense to me, they would own the wearable fitness tracking market.

With many insurance companies getting on board, and more wearables on the market today, software becomes important. However, in the interim the question becomes: how ugly will it get before someone steps in? $FIT needs to hold the $5 level here.

$CMG is down another 6% today, and trending over on the stocktwits board. The company had a downbeat outlook slashing future earnings and noting higher than expected operating costs due to marketing.

Due to margin pressure in the second quarter the stock is down 31 points today, down 70 from it’s high back in May. With the stock trading back down to the 200 day moving average, are you a buyer here on this dip?

__

Long term, I think you will win in the end with $CMG. Short term, I think $CMG still has a few bumps in the road as evident by its latest update. I’m expecting to see some buyers show up at the 200 day, only to be washed away as we fall back below $400. I’ll gain interest sub $400.

Long live Burritos.

$IBB, the Nasdaq Biotechnology Index Fund, is breaking out above $300, a level it has struggled with over the last few months. If you want to find out where the action is today, look no further than biotech up a cool 2% as a whole:

______

Today’s runner screen inside Exodus is loaded with tickers within the industry, here are a few of my favorites to watch:

_

The full screen can be found HERE.