An Island Hopping Campaign in the Biotech Theater

The healthcare and biotechnology complex has mostly experienced plenty of fits-and-starts this summer, with upside momentum blunted, especially in late-July. However, some of the more prominent bios, like AMGN BIIB CELG GILD REGN, have not exactly crashed and burned, ether. 

Instead, plenty of the top IBB holdings are flashing signs of simply needing more time to build out bases, possibly in anticipation of a rally later this year. 

When we dig a bit below the surface for some mid-cap biotechs, the likes of KITE ONCE and a few others have been standouts with their strength.

Moreover, Galapagos, a Belgium-based biotechnology company updated on the weekly chart, below, continues to steadily move higher since we last observed the chart a few weeks back. 

Indeed, the sector, at the moment, smacks of having narrow pockets of momentum and requires bulls to engage in something akin to an island hopping strategy for now in lieu of broad sector rallies. Similar comments apply to healthcare and the medical device space.