Stock Trends

Biotech makes a move

Good morning,

In this week’s Monday Morning Playbook, we looked at a potentially constructive long-term setup in biotech. And as volatile as its been, we’ve managed to hang onto XBI (equal-weight biotech) in our Ultra-Growth ETF portfolios.

But the group has shown even more strength to start this week and I believe deserves a closer look at the individual stock level.

This week, we’ll review potential long opportunities in biotech as well as:

• Weakness in homebuilders

• Wednesday’s biggest movers

• Key levels on major tech names

• and more!

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Biotech: Large-cap leaders

LLY is leadership until proven otherwise

Eli Lilly has already hit the measured target from its base and the MACD is cresting but this stock remains a leader in a strong uptrend. Pullbacks and pauses should be bought until that changes.

NVO also strong

Fellow weight loss giant Novo Nordisk looks more timely, pulling back 2% yesterday after breaking out from a 3-month base. $138 is first support.

Regeneron riding a steep uptrend channel

REGN hit a 52-week high on Tuesday and bounced off the bottom of a month-long uptrend channel yesterday.

Vertex pause should prove buyable

We’ve been highlighting Vertex for the past few months and the stock remains a leader in the space. Extreme overbought conditions have mostly been worked off over the past 3 weeks.

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Biotech: 2 for the speculative crowd