05Aug11:24 amEST

Renegade Biotechs

adjective: renegade

having treacherously changed allegiance.

The XBI sector ETF for biotechnology issues is turning in an impressive morning, thus far, as the likes of BEAM EDIT NTLA lead the charge higher. 

For a good while now, we have profiled the relative and even absolute weakness in many bios, despite the jaw-dropping rally in shares of virus-related plays like MRNA. However, the tables may indeed be turning here, with renegade bios changing allegiance in favor of a strong daily candle at the moment. 

Indeed, on the updated XBI ETF daily chart, below, we can see as much. And bulls needed this performance at its current location, given how fragile the sector looked to an imminent breakdown. To be clear, the breakdown thesis is far from dead. 

But a relief rally into the middle or even latter part of the month (say, around Jackson Hole in the last week of August) is a colorable thesis at this point, especially if a new wave of M&A emerges for the gene editing stocks.

FATE and NTRA are two other strong XBI holdings with clean, tight chart patterns.  

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