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Moving Average Analysis of the Pharmaceutical Subgroup

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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.

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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.

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