Some Old-Fashioned Island Hopping

The drifting action into the FOMC continued today, with pockets of momentum largely relegated to the small and mid-cap biotechnology arena. I am very light here in terms of my exposure, but after The Fed tomorrow there are a few of the biotechs on my radar. Indeed, it seems as though biotech bulls are island hopping within the space, which brings us to Galapagos. 

Galapagos, below on the weekly timeframe, is yet another example of a surging biotech this week. You can see price breaking sharply up and out of the highlighted consolidation. We have a few plays lining up behind GLPG to potential follow suit, not unlike the AGIO idea we posted yesterday on this site. 

Of course, The Fed decision and, most importantly, the market's reaction to it tomorrow and the rest of the week could easily supersede the biotech bonanza we have seen of late. So that is why I am holding off until at least tomorrow before diving in.

Nonetheless, it is worth adding that natural gas and some soft commodities are having a great week and are often some of the few markets oblivious to The Fed.