Not Funny "Haha," Funny QURE

Although we can point out the likes of AMZN and FB looking like the best "FANG" names here, alongside OLED continuing to exude excellent relative strength to its downtrodden peers in the semiconductors, not to mention some decent software action, the reality is that today's session belongs to biotechnology and select healthcare stocks. This is all happening as we zoom towards the big, bad, June FOMC on Wednesday afternoon, sure to set the monetary tone in terms of Fed policy until at least Labor Day, barring an exogenous event. 

We know ARRY is the big winner today on the back of the PFE deal, but QURE is another gene therapy play up more than 10% as they are exploring various options, namely a sale. 

What is most impressive about the IBB XBI rallies today in biotech is that the strength seems broad-based and has, thus far, avoided the dreaded fade. I increased my exposure to the sector today beyond my SAGE long, a name I had previously noted for Members was rather annoying to trade, as is the norm with bios unless the sector is red-hot. 

However, M&A is the ultimate wildcard for biotech. And if this buying spree persists we simply must be willing to throw our hat into the ring and take a shot here and there. If the XBI can close and hold back above its 200-day moving average, it would seem logical that strong, heavily-shorted bios like ESPR, below on its daily chart, would be ripe to squeeze shorts into the sky this summer. Note the tight base as the daily chart has been steadily improving. 

Plenty of traders have an aversion to biotech in general, which is completely understandable. Oftentimes, they are correct that it is probably not worth the risk to dabble with smaller bios especially, when they are not comfortable in the sector to begin with at all.

However, M&A spurts are rare and we may be in the midst of one now. Seeing moves in ARRY QURE is no laughing matter and is surely wiping the smirk off the many cocky biotech shorts out there who are likely playing with fire in a sector undergoing some form of consolidation/M&A.

Thus, I want to stay active in terms of looking for opportunities.