Don’t Sleep on Biotechs

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Health Care has become the forgotten sector.

It’s been the worst performer year-to-date — totally left behind while everything else trends higher.

Nobody wants to touch it as the risks have been well advertised. 

And it shows. The sector just wrapped up one of the worst streaks of underperformance in its history.

But here’s the thing about market extremes like this. 

When everyone’s piled onto one side of the trade… there’s no one left to drive it any further.

That’s precisely when the tide turns.

So what if Health Care starts catching a bid?

What if it plays a little catch-up here?

Strazza’s been pounding the table about this strategy lately.

And to me, Health Care fits the bill perfectly for the next rotation.

Now, if we’re going to talk about Health Care, we have to talk about Biotech.

It’s the most aggressive corner of the space — high beta, ultra-sensitive to interest rates, and pure risk-on.

And right now, it’s knocking on the door of a huge breakout.

Just pull up the chart of the cap-weighted Biotech ETF $IBB.

It’s pressing right up against 135 — and that level matters.

It marks the prior cycle highs from 2015.

It’s also where the anchored VWAP from the all-time highs lands.

And if you throw on a volume-at-price indicator, you’ll see a massive buildup of price memory right around that area.

This major polarity zone has acted like a magnet for nearly a decade.

Any decisive move above 135 could light the fuse and mark the beginning of a new leg higher.

Don't sleep on biotechs.

We’re not.

In fact, a couple weeks ago we did a full deep dive — highlighting the best biotech setups for ASC Premium members.

If you want access to these trades, click here.

Stay sharp,

Alfonso