Biotech has had an insane run up the last year, and specifically the last 14-15 months where it broke out of its 30wma channel and relative consolidation. At the moment, almost daily we are seeing new bioteches with all sorts of "ideas" no revenues, high valuations come into the market. this is similar to tech booms in my eyes, although not yet as overextended...
In my opinion a very strong sign when the outperforming sector breaks out again. If it's a failed breakout the next days will be very volatile and IBB would have big losses. Tight stops are helpful to avoid bigger losses. I am long this IBB. This is not a recommendation - only my personal opinion.
