The biotech sector is on fire as the new week begins. The iShares Nasdaq Biotechnology ETF (NASDAQ:) is posting its best gain of 2021 on extremely heavy volume. This powerful move is driving the ETF past the March/April highs on what is already heaviest upside trade since Nov. 4, 2020.
Details: Despite trading at new three-month highs the IBB is far from overbought (daily MACD=neutral). There is plenty of room to run.
The IBB has been trading inside a five-day range (March 1-5). This narrow sideways action is giving way with an upside breakout.
The Top 5 XBI holdings: Amgen (NASDAQ:), Gilead Sciences (NASDAQ:), Moderna (NASDAQ:), Illumina (NASDAQ:) and Vertex Pharmaceuticals (NASDAQ:).
Investment Objective: The iShares Nasdaq Biotechnology ETF seeks to track the investment results of an index composed of biotechnology and pharmaceutical equities listed on the NASDAQ.
Note: We are long GILD and ILMN in some managed accounts.
You can read Gary S. Morrow’s original post here.
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