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XBI Stocks: 33% Are Trading above the 20-Day Moving Averages

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XBI’s moving averages

The SPDR S&P Biotech ETF (XBI) fell substantially in the moving averages. From August 10–17, 2015, only 32.63% of the stocks were trading above the 20-day moving averages, 33.68% of the stocks were trading above the 50-day moving averages, and ~43% of the stocks were trading above the 100-day moving averages. There has been a drastic fall in the stocks’ moving averages—compared to the week ending August 7, 2015. The percentages for the period were 52.63%, 67.37%, and 63.16%.

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In terms of absolute numbers, 31 stocks are trading above the 20-day moving averages, 32 stocks are trading above the 50-day moving averages, and 41 stocks are trading above the 100-day moving averages, respectively, for the current week. For the previous week, the numbers were 50, 64, and 60 stocks, respectively.

The above chart shows the percentage of stocks with different moving averages on a week-over-week basis. The fall in the percentage of shares in each moving average category is an indication of the weakness prevailing in the biotech sector.

Companies trading outside the 100-day moving averages

As of August 17, 2015, Bluebird Bio (BLUE) ended at $131.69. The stock fell by 5.42% for the week. The stock is trading below the 20, 50, and 100-day moving averages. The 14-day RSI (relative strength index) is at 28. This indicates that the stock is oversold. The stock witnessed some big selling after it announced its 2Q15 results. According to the company’s press release, Bluebird Bio recorded a net loss of $51.8 million for 2Q15—compared to a net loss of $1.5 million in 2Q14. The company has a weight of 1.59% in XBI.

Acadia Pharmaceuticals (ACAD) has a weight of 1.19% in XBI. It’s trading below the 20, 50, and 100-day moving averages. However, the stock remained flat for the week. Acadia announced its 2Q15 results on August 6, 2015. According to the company’s press release, it recorded a net loss of $39.4 million—compared to a net loss of $21.5 million for 2Q14.

Opko Health (OPK) is trading below the 20, 50, and 100-day moving averages. Its RSI is at 24. This indicates that the stock is oversold. However, the stock fell 5.19% because its 2Q15 results were lower than expected. According to the company’s press release, it recorded a net loss of $42.8 million. However, the revenue was $42.4 million. Along with these stocks, Alnylam Pharmaceuticals (ALNY) is also trading below the 100-day moving averages.

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