Two Diamonds in the Rough

I have been fairly sour on biotechs for a long while now, and for good reason: The IBB and XBI sector ETFs have largely lagged at many junctures, defying many bold calls for an imminent rotation. 

That said, Madrigal and Mannkind, respectively below on their daily charts, are in two hot areas of biotech. More importantly, it is hard to quibble with the technicals, as they are easily as impressive as any chart in the entire sector, flagging above rising moving averages. 

To be clear, I am still reticent to turn bullish on biotech at-large.

However, the smarter play may very well be to buy calls on the following names and bet on these outperfomers continuing to exude relative strength either way. 

As for the market overall, semis are catching the speculative fervor again to kick off a busy summer week. The transports continue to be act poorly, well under the radar of most who do not notice or do not care.