Written by Rich B. Meier
TopEquityNews.com
In what was a dismal day – from bell to bell – two biotechnology ETFs managed to climb the avalanche of selling. iShares Nasdaq Biotechnology (IBB) gained 4.78% and SPDR S&P Biotech (XBI) added 2.58% on a day when the three major indexes lost at least 1.86%.
The main catalyst for the performance of both exchange-traded-funds was Pharmasset, Inc. (VRUS). It was up more than 84% after being purchased by Gilead Sciences Inc. (GILD). We congratulate anybody reading this that owned VRUS. TEN is jealous.
Pharmasset was the only biotech stock in the duo’s portfolios to put in a good day’s work. In total, 13 stocks managed to gain 2.5% or more – IBB and XBI share seven of the thirteen. They include:
- Geron Corporation (GERN) GRADE: C
- Regeneron Pharmaceuticals, Inc. (REGN) GRADE: C
- Savient Pharmaceuticals, Inc. (SVNT) GRADE: C
- Spectrum Pharmaceuticals, Inc. (SPPI) GRADE: B
- Ariad Pharmaceuticals Inc. (ARIA) GRADE: C
- Dendreon Corp. (DNDN) GRADE: C
- Amylin Pharmaceuticals, Inc. (AMLN) GRADE: C
One of the metrics Top Equity News reviews closely is money in/out on a weekly basis. Consider it the stock market’s version of a quote attributed to bank robber Willie Sutton. We do it because, “It’s where the money is,” and following the money will lead you to many a winner.
Hands down, Dendreon Corp. (DNDN) won the race with more than $9 million of accumulation. That represents nearly 1% of its market-cap.
DNDN’s stock price has been hammered. Late summer, the price was in the $40s. Now it is $8.36. Maybe, just maybe, Wall Street is about to bring Dendreon back to life. According to our reading of their stock chart, a couple of buy signals have emerged. TEN sees the short-term moving averages reversing course and starting to trend higher. A bullish MACD crossover is another potential indication that more money could pour into the biotech. A few million more dollars and a run to resistance at $12.50 is possible.
Regeneron Pharmaceuticals, Inc. (REGN) is another biotech that benefited from good news. The FDA approved Regeneron’s injectable eye drug Eylea. The company will start selling the drug this week; which was approved as a treatment for “wet” age-related macular degeneration – a common cause of blindness.
The FDA OK pushed shares up 10.42% on Monday and the priced settled the day near a resistance level. If a little profit taking comes REGN’s way, then $53.50ish could be a nice entry point. As recently as the first week of September, the stock was living in the $70s neighborhood. Again, TEN eyeballs a bullish MACD crossover near the indicator’s low point for the year. The last time this signal occurred at nearly the same level, patient investors rode the stock from $47.50 all the up the mountain to $79.90 in about a month.
ETF Trends: Come Trade with Dr. Feelgood is an article from: 
