Weekend Sector Watch: Biotech

Healthcare, particularly Biotech stocks have been charging higher as of late. The biotech EFT, XBI popped this week to 18 month highs with the large cap heavy ETF IBB making a similar push. Before you get too excited, know that while this sector can offer huge gains, the reality of possibly getting caught in the down draft of a developmental biotech company can do serious damage to your trading account. Here at TTP trading we take a cautious approach to trading in this area. We don’t over expose ourselves to the sector and we keep position size in most cases smaller than we normally would. We might also suggest limiting your exposure to seasoned companies that already have products on the market or use the available ETF’s to limit your risk. For those who want to be a bit conservative yet want more bang for the buck, the ETF LABU gives you three times the leverage. A few stocks that are on our radar are GILD, BIVV and ENZ. Here is a look at a few of the charts.






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