Biotechs Are Bubbling Up

Yesterday I mentioned that the biotech group was strong in the face of overall market weakness. This is a welcome change from the prolonged downtrend that the group has been in since peaking in February.

A look at the chart (below) of the BTK shows that the index has broken said downtrend, shot above its 50-day average, and is within striking distance of its overhead 200-day.


Stocks like DNA and GILD have turned sharply higher over the last week or so. I like both of those stocks on pullbacks. But the one stock I like that has lagged, and is now in position to play catch-up is AMGN. I would look to add to this one on any weakness.

AMGN actually peaked in December 2005, and has been in a long downtrend. The stock now looks like it could be breaking out of this trend, and getting over its 50-day, which has provided stiff resistance for months.

long AMGN