💊 What's Going on with Biotech Stocks?

Sector to Focus On

As I often recommend, to determine where strength is, compare each sector and see where money is flowing.

The chart below shows sector performance since the start of 2024. Biotech is leading by a wide margin. You need to be watching names in this space.

Chart Analysis

XBI is just now breaking out of a multiyear base.

This is incredibly important to understand because the longer a stock bases, when it breaks out, the magnitude of the move higher typically increases.

Our first target for LABU is $150.

What are the Catalysts?

Right now JP Morgan is hosting a biotech conference with many players in the space giving presentations.

A ton of names have seen outsized moves as a result. Look at the performance of names like BHVN, APLS, RXRX, and CYTK in recent days.

Next Steps

If you are a member of the Alpha Chasers trading community, you would know that we have been trading CYTK for some time and have done exceptionally well in LABU over the past few weeks.

I don’t think that the move in this space is over since we are just breaking out. This is a sector that you need to be focusing on.

For more information, watch the short clip below: