Last Week's Biotech Tailspin Sends Stocks Plummeting
(Continued from Prior Part)
XBI’s stock trading at varioius moving averages plummets
The SPDR S&P Biotech ETF (XBI) has 103 stocks in its portfolio under various subgroups. XBI’s moving average took a hit in the week ended September 25, and most of its stocks were trading below all the moving averages. Only 7.77% of stocks in XBI were trading above their 20-day moving averages, 8.74% were trading above their 50-day moving averages, and 14.56% were trading above their 100-day moving averages.
Compared to the previous week ended September 18, 2015, the fall was massive. The numbers last week were 77.08%, 46.88%, and 44.79% for 20-day, 50-day, and 100-day moving averages, respectively.
The above graph reflects XBI’s moving average trend on a week-over-week basis. For the week ended September 25, only eight stocks out of 103 were trading above the 20-day moving average. Nine stocks were trading above the 50-day moving average, and 15 stocks were trading above the 100-day moving average. In the previous week, the numbers stood at 74, 45, and 43, respectively.
Myriad Genetics trades above 100-day moving average
Myriad Genetics (MYGN) fell 3.22% last week. It was one of the stocks that bucked the trend, although it did lose some ground. It may have remained strong because of its announcement on September 24 at the European Society for Medical Oncology Annual Meeting that it had new results from its diagnostic and prostate cancer tests. MYGN stock closed at $38.48 and was trading above the 100-day moving average. MYGN has a weight of 0.97% in XBI’s portfolio.
Clovis Oncology (CLVS) fell 18.39% but still continued to trade above the 100-day moving average. The stock closed at $93.35 on September 25. CLVS has a weight of 0.95% in XBI’s portfolio. On the positive side, Reuters reported on September 24 that Clovis “today announced that three oral presentations and four scientific posters highlighting updated results from clinical studies of the company’s two compounds in advanced clinical development are being presented at the 2015 European Cancer Congress (ECC), which will take place Sept. 25-29 in Vienna, Austria.”
Stocks like Amgen (AMGN) and Bluebird Bio (BLUE) were trading below 100-day moving averages.
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