Based on technical analysis, it appears biotechnology may have reached a top yesterday. Why? First, the daily chart put in a significant top signal (doji). Today, the move is confirming as the index is declining. This came on the back of an explosive move known to traders and investors as a blow-off top (previous 2 weeks). In addition, stocks like Amgen, Inc. (NASDAQ:AMGN) and Gilead Sciences, Inc. (NASDAQ:GILD) reported earnings. Significant distribution appears to be taking hold on these names. Ultimately, while timing is not Fed Chair Janet Yellen's forte, nor was it Greenspan's, it is important to take it as an important heads up. Combining their viewpoint and the charts could yield a significant shorting opportunity worth 30% or more.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com