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Tradable Bottom In With Biotech But Don't Go Crazy

|Includes:Gilead Sciences, Inc. (GILD), IBB

Large Caps Are Recovering But Follow Q1 Earnings Closely

Fidelity Select Biotech FBIOX( $176 ) must hold $172 for new buys.

Healthcare sector XLV ($56.94) lagging industrials and energy.

April 15 Low Must Hold IBB ($207.70)

  • Our top picks that are off 5 day bottom and higher: ABBV ALKS ALXN, BIIB, GILD.
  • Even laggard Celgene (NASDAQ:CELG) down 16% YTD is catching bids.
  • MOMO and Smaller Caps-Dip In For Day Trades Only -XBI ($125.44) low at $115.40

Valuation Models From October 9, 2013 Revisited

  • Onyx buy-out by Amgen (NASDAQ:AMGN) at $10B still high-water mark so M&A action should be mid-caps.
  • Stocks higher on list: ALXN, INCY, PBYI.
  • Stocks lower on list: ARIA, BMRN, CLVS, PCYC, REGN, SGEN.

Small and Mid-Cap trading action is volatile with good volume.

Disclosure: I am long ABBV, GILD.

Additional disclosure: I am long FBIOX and short mid-cap biotech stocks on a daily basis,

Stocks: GILD, IBB