The decline from $400 in $IBB, the IShares Nasdaq Biotechnology Index Fund back in July 2015 and then tumbled 40% to $240 on February 9th , 2016 and later retested $240 on June 27, 2016.
The mid-point of that decline is $320 and a line drawn from the top at $400 down through the $320 level on June 27th gives you a line that is now down below $275 and that line has been violated to the upside, retested and is turning back up again and THIS TIME it is with President Trump pushing for faster "time to market" in exchange for lower drug prices. Will the deal go through and will it make a difference? Time will tell.
For now, the Yellen-Bubble-popping bear market has been dramatic since August 2015 as it tumbled a whopping 40%.
But there might be signs of life here in Biotech Bubble land, even with fears of price gouging still lingering over these stocks .
For now: Average in over the next 2-3 months and see if this story pans out.
12:31AM EST February 2, 2017 280.42 last $IBB. Other symbols for Biotech $FBT, $XBI, $BBH
I am constructive about $IBB here on today's 2 point pullback. Add to positions here and on new highs and on each "average range advance".