Bull markets come in all shapes and sizes. This week it was the billion dollar move in $DNDN and the prostate .
A bull market in biotech won’t be the easiest to manage , because like Gold, there is no cash flow in the most exciting names. Very little is predicatable.
The biotech charts are littered with Gaps. For that reason $IBB has been my vehicle of choice.
As wealth spreads around the globe and our population ages, it makes common sense that we are in the midst of a biotech boom.
I am not sure about the rest of the markets, but the price action in the Biotechs, while wild, is trending strongly.
To get a boom going, the FDA might do well to visit the offices of Moody’s $MCO as the rating agencies sure now how to throw a market party.
I agree about playing biotech through IBB. I’ve tried finding a better vehicle with a greater variety of smaller names, but IBB seems to be the best we have right now. Many will try to chase DNDN and the like and you will sometimes get the huge gains. But, then you wake up one morning to find out that the FDA didn’t approve something and you are down 50% quick. Building your own portfolio of names is also tough. It sounds good in theory, but some of these names trade so wildly and are so thin that I think you end up racking up a lot of frustrating stop outs (I don’t think, I know).
With all the dumb etfs they have come out with, I don’t get why IBB is the best they can do with biotech. It is ok, but we should have a better vehicle.
I agree about playing biotech through IBB. I've tried finding a better vehicle with a greater variety of smaller names, but IBB seems to be the best we have right now. Many will try to chase DNDN and the like and you will sometimes get the huge gains. But, then you wake up one morning to find out that the FDA didn't approve something and you are down 50% quick. Building your own portfolio of names is also tough. It sounds good in theory, but some of these names trade so wildly and are so thin that I think you end up racking up a lot of frustrating stop outs (I don't think, I know).
With all the dumb etfs they have come out with, I don't get why IBB is the best they can do with biotech. It is ok, but we should have a better vehicle.