Back in the Doghouse

Gilead has been one of the bigger duds among larger cap biotechnology issues for a while now, a name we highlight daily for Members in terms of running through sector leaders. The issue was whether other biotechs would pick up GILD's slack, as the stock merely tried to regain its footing.

For a while there, it seemed as though AMGN BIIB CELG REGN would do just that, especially BIIB.

However, sector pressures came to a head with this week, with the ALNY blow-up a symbolic sign of a risk coming out of the group for now. As an example, note the IBB ETF below, back under its key $290 level which stretched back several quarters. I suspect those pressures are keeping a lid on some of the better charts among mid-cap bios, too, like GLPG. 

The pressure can be alleviated if bulls get their acts together next week and beyond. But with this type of action a wait-and-see approach is still likely correct. In the meantime, we are looking to see if other sectors can pick up the slack caused by biotechs this week.