Biotech

Scott Maragioglio (212-692-6392) smaragioglio@epiphanyresearch.com

Biotechnology is oversold on a long-term basis. This sector is looking like an attractive counter-trend long right here. I like the way the concept holds together as well. The group produces a consumer staple product (if they happen to have a drug on the market), and its a high beta growth sector. Portfolio managers may see the group as a way to play growth while sticking to their consumer staple theme.
The sector has generated an oversold reading in the % of stocks > 200-day moving average. This suggests that traders have abandoned the group and long-term bearish sentiment has swung to far. This reading tells us that the downside momentum in the sector is exhausted and the group is ready to start rebuilding a new primary uptrend.

Comments

[Bud Rainsberger]

Scott and John,

I really like this format and the way the ideas are presented. We can use this for internal or external client diwscussions this way. Thanks for being part of our success.

Bud