The Gilmo Report

September 3, 2017

September 3, 2017

The stampede into stocks over the past four days has been nothing short of ballistic. In my Wednesday report I discussed the resurgence in the bio-tech sector, led by sharp upside moves in the biggest of the big-stock bio-techs, Amgen (AMGN), Biogen Idec (BIIB), Celgene (CELG), and Gilead Sciences (GILD).

These four names make up the bulk of the weightings in the iShares NASDAQ Bio-Technology Index Fund ETF (IBB). All four stocks have had similar moves this past week, and we can see this in the ETF’s sharp, four-day upside move to new highs on heavy volume. The last time the IBB had a move this ballistic was back in June.

From that point in June, the IBB then briefly pushed to higher highs in July before rolling over and making lower lows in August. That action looked quite bearish, and one can see a sort of fractal head and shoulders formation forming from late June to late August.

But in the Ugly Duckling robo-market, when something looks that ugly, well, it’s time for a rally! And that’s just what we got as bio-techs surged back to life and made another high-volume run to new highs. At this point, this is likely to back and fill a bit here as it did after the June move, but big-stock NASDAQ bio-techs have helped send the NASDAQ Composite Index to all-time closing highs on Friday.

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