Cut Them Down as They Reach for the Sky

A major key for my current biotechnology sector short, via long BIS, is going to be the performance of individual component, Biogen (BIIB). 

Bingen has essentially appreciated from $40 to over $400 per share since 2009, quite an impressive move indeed considering this is a large cap biotech. And not only is Biogen a large cap biotech, but it is also the most heavily-weighted component in the IBB, sector ETF. 

As such, you can see the reversal on Friday from the upper Bollinger Band on the daily chart below. Seeing as the stock is a "ten bagger," it merits watching all the more closely to see if this reversal amounts to anything meaningful, with downside confirmation of course necessary for the bear case.

The risk to shorts, at this stage in the biotech rally, would be a blow-off top higher into the month of March, as they reach for the sky.