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Biotechnology Traded below Moving Averages in Last Week of August

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Sep. 30 2015, Updated 9:19 p.m. ET

Biotechnology on downward trend

With a combined weight of 71.53%, biotechnology and pharmaceuticals are the two largest subgroups of the Health Care Select Sector SPDR ETF (XLV). XLV has seven stocks in these biotechnology subgroups, including Amgen (AMGN), Biogen Idec (BIIB), Vertex Pharmaceuticals (VRTX), Gilead Sciences (GILD), and a few others. In the biotechnology subgroup, 100% of the stocks are trading below their 20-day, 50-day, and 100-day moving averages.

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Similarly, in the pharmaceuticals sector, 94.12% of the stocks are trading below thire 20-day moving averages, 94.12% are trading below their 50-day moving averages, and 88.24% are trading below their 100-day moving averages. In terms of absolute numbers, only one stock out of 17 is trading above its 20-day and 50-day moving averages. Two stocks are trading above their 100-day moving averages.

The above graph reflects the moving averages of the biotechnology and pharmaceuticals subgroups.

Eli Lilly and Hospira trade above 100-day moving averages

Eli Lilly and Company (LLY) makes up 2.68% of XLV’s portfolio. LLY rose 2.01% from August 25–31, 2015. The stock went up on news that the FDA (U.S. Food and Drug Administration) approved Synjardy tablets for adults for the treatment of diabetes. The stock closed at $82.35 on August 31.

Hospira (HSP) stock was also trading above its 100-day moving average. HSP makes up 0.54% of XLV’s portfolio. The stock moved up marginally from August 25–31, 2015. HSP and Cerner (CERN) agreed to advance the integration of I.V.-EMR Technology. HSP closed at $89.97 on August 31, 2015.

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