Get started
SPDR S&P BIOTECH ETFSPDR S&P BIOTECH ETFSPDR S&P BIOTECH ETF

SPDR S&P BIOTECH ETF

No trades
See on Supercharts
Overview Analysis News
Ideas
Discussions Seasonals

SSGF trade ideas

Biotech down on news, may enter new downtrend.The biotech sector fell today news that Donald Trump intends to sign an executive order demanding that pharmaceutical companies give the US government "favored nation" prices. The news may not be as bad as it sounds, because Trump is apparently only launching a pilot program that will effect a small number of drugs. However, it's hard to predict the market's reaction to the news. Biotech is still above its trendline and its MACD is still above the signal line, so it's still bullish for now. But it could breach both tomorrow and enter a downturn. Beware if XBI falls below about 84.90 tomorrow.
AMEX:XBI
by ChristopherCarrollSmith
Technical and Fundamental Factors Point to Shorting OpportunityRising wedge to triple top @ 93-94 then bearish confirmation breaking the neckline @85. Also, upside momentum declining as indicated by the RSI and MACD divergence, with MACD crossing the zero line. Political rhetoric by both Democrats and Republicans suggesting government intervention as the solution for combating rising healthcare cost. Also, majority of constituent names have weak fundamentals (e.g., negative PE) and may be first to be discarded in a major downturn for their high-beta speculative nature. VIX also at all time low and a spike in vol could propel name to the downside quite aggressively. Severe short squeeze may be possible along the way (as we saw today) due to very large short interest in the name. But near-term path of least resistance (trend) appear to be down rather than up.
AMEX:XBIShort
by NSAM