I love the biotech group ($DJUSBT) and it's not something new. I've been discussing the relative strength of biotechs for months now. As the overall stock market struggled on Friday afternoon over renewed coronavirus fears, one group continued to benefit from such fears and it was the DJUSBT. Noting relative strength among industry groups is a very important step in developing a sound investing/trading strategy. The next step, which
should be fairly obvious, is to find the leading stocks in those industries. In biotechs, we have four stocks - REGN, VRTX, SGEN, and AMGN - in our four portfolios. Clearly, we have confidence in those. But where else can we look? Well, for starters, watch for key levels of resistance to see if they can be broken. ILMN is an example of a biotech stock awaiting such a breakout:
