Moving average analysis of the pharmaceutical subgroup
The pharmaceutical subgroup has a weight of 23.82% within the iShares NASDAQ Biotechnology Index ETF (IBB). As of July 31, 2015, 61.29% of the stocks were trading above the 20-day moving averages, 70.97% of the stocks were trading above the 50-day moving averages, and 75.81% of the stocks were trading above the 100-day moving averages.
The 100-day moving averages saw an 8% rise on a week-over-week basis. There were 42 stocks in the 100-day moving average zone for the week ending July 24, 2015. However, for the week ending July 31, 2015, the numbers rose to 47 stocks.
The above graph reflects the number of stocks that are trading above the 100-day moving averages on a week-over-week basis. It starts from the week ending July 24, 2015.
Akorn, Grifols, and Endo International
For the week ending July 31, 2015, the stocks that moved into the 100-day moving average zone include Akorn (AKRX), Clovis Oncology (CLVS), Endo International (ENDP), and Grifols (GRFS). In contrast, Dyax (DYAX) fell out of the 100-day moving average as it announced its 2Q15 results. According to the company’s press release, it reported a net loss of $8.4 million. The 100-day moving average is considered to be a good measure of medium to long-term investment.