The world's largest biotech fund, the iShares Nasdaq Biotech ETF, has had a quiet couple of months. For the last four months, the fund has been consolidating in a tight range between about 285.00 and 303.00. That changed abruptly this week, with prices surging out of that range to hit a high above 320.00.
Some of the actively managed funds that have performed the best since the Nov. 8 presidential election are switching from "Trump Trade" bets on financial and infrastructure stocks into beaten-down sectors such as retail, apparel or biotech.
Biotechnology companies, whose U.S. shares soared Wednesday after Republican Donald Trump's presidential election, may soon see another benefit: an uptick in biotech M&A.
There should be enough time in this daily cycle for the Nasdaq to complete a full test of the all-time highs at 5,231 before the next drop down into a daily cycle low.
The point is this: we’ve had an intense start to this rebound very similar to what you’d get in a Christmas rally. But think back to all those rallies with a time limit of 3-4 weeks.
