The Claws Are Ready

I remain short GILD with minor profit cushion on my entry, playing for that 200-day moving average (yellow line on daily chart, below) to eventually succumb to selling pressure after buyers have tried to defend it for quite some time now. As a general rule in technical analysis, the more well-defined support is probed, the more likely it is to eventually give way. 

Even in this runaway (at times) bull market, that concept helped me with wins on the short side in FB and TSLA earlier this year, and avoided getting buried with longs such as BABA and GPRO late-last year. 

With respect to the selling in the biotech sector at-large today, the consensus seems to be that dip-buyers will show up any moment now. History of this bull suggests that is correct. But even if that happens to a degree, I am playing GILD on its own merits at this point.

To be sure, GILD has lagged other major biotech players like BIIB REGN in recent months, which is another reason I took the short. 

I would consider adding to the position with a decisive break below the 200-day.