Your Invitation Inside — Ray’s Biotech Profit Party
Things are looking up for biotech stocks.
Take for instance Puma Biotechnology (NASDAQ: PBYI).
After consolidating for the past few months, PBYI stock is up over 11% for the week.
Better yet, PBYI is still trading well below its 200-day moving average of $73.08. At a price of $53.80 there’s good chance more gains are coming soon.
And they’re not the only one. Another biotech we’ve kept a close eye on, Clovis Oncology (NASDAQ: CLVS), is popping too.
The stock is up over 8% on the week. And like PBYI is currently still trading well below its 200-day moving average.
And this rising trend in biotech right now is not just helping out a select stocks.
The entire sector is in the money.
The Nasdaq Biotechnology Index (NBI) is moving well off its lows from early last month, now pushing out a 3% gain for the year.
Additionally, the iShares Nasdaq Biotech ETF (IBB) have also soared recently. After quietly consolidating above its 2018 lows for the better part of the past four weeks IBB is up 4.85%.
Great news for biotech investors!
These two indexes however, are pretty heavily weighted toward large and mega-cap biotech and pharma names.
Here at Tech Profits Daily, we like to focus on more of a mix, which includes talking about smaller biotechs, since they typically offer the biggest upside potential
And right now things are looking great for small-cap biotech stocks.
The S&P Biotech ETF (XBI), which tracks the S&P’s biotech index, is far richer in these smaller biotechs than its Nasdaq and iShares siblings.
Last week, we watched XBI quietly rally off April lows to post new all-time highs.
Small biotechs are crushing it right now, and many of these speculative names have posted incredible gains over the past couple of weeks.
We could be on the verge of a major breakout.
That rising tide could be great for a lot of biotech trades, raising many stocks to highs we’ve never seen before.
Take for example one of investment expert Greg Guenthner’s recent favorites, Ocular Therapeutix Inc. (NASDAQ:OCUL).
Thanks to a strong breakout move, folks with positions in OCUL can close out Friday’s trading on very high note.
For the week shares are up almost 12%
Not too shabby for a week’s worth of work!
And there should be plenty more gains like this throughout biotech over the next few weeks and months.
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Chief Technology Expert, Technology Profits Daily