Biotechnology Stocks Are Hot

One way I judge the health of the market is by the amount and type of results I get from my scans and biotechnology stocks are really hot right now. I’ve been noticing this for awhile now but because the market hasn’t been very stable, I’ve held off buying any of these. That has now changed with the move in the markets this week as I’m seeing a lot of healthy charts and a number of breakouts. On top of that, my bullish call that I made last week has received another vote by a confirming indicator that I use. I believe it’s about as safe as it’s been in awhile to own stocks long. Keep in mind, I’m coming from a position that I have some gains banked from this past week, so I have some psychological wiggle room to withstand a day or two of losses.

Here are a few and this is by no means a comprehensive list of the biotech/healthcare sectors. If there are any that aren’t here that you like, feel free to leave a comment with ones you are watching. All of these are momentum but BTIM, which I’ve included because it was so highly touted at the Agora conference for the research that they’re doing. While it’s not a buy for me due to technical reasons, if you are a long term investor I suggest doing your own due diligence if you’re looking for a spec biotechnology stock  play.

One other thing to consider about biotechnology stocks is even if the market does decide to fool everybody and move lower, this sector has been known to be a safe haven when markets drop. I personally don’t like to hold anything when the market drops, but for those of you that aren’t as short term focused, this could be another buying reason in this sector.

SLXP VRUS ARNA NXTM EW ENDP BTIM