Analyzing the moving averages
Within the iShares Nasdaq Biotechnology ETF (IBB), the biotechnology subgroup and the pharmaceutical subgroup have a weight of 75% and 22.5%, respectively. The biotechnology subgroup has 75 stocks and the pharmaceutical subgroup has 61 stocks. As of October 13, 2015, 16% of the stocks in the biotechnology subgroup were trading above the 20-day moving average, 9.9% of the stocks were trading above 50-day moving average, and 9.9% of the stocks were trading above the 100-day moving average. In the pharmaceutical subgroup, the stocks were trading 11.5% above the 20-day moving average, 13.1% above the 50-day moving average, and 11.5% above the 100-day moving average, respectively.
The above graph shows the pharmaceutical and biotechnology subgroups’ different moving averages. The biotechnology subgroup has more stocks trading in the 20-day moving average. The pharmaceutical subgroup has more stocks trading above the 50-day and 100-day moving averages.
Grifols and Myriad trade above the 100-day moving averages
Grifols (GRFS) only fell by 0.34%. It bucked the trend. There were talks that Moody’s upgraded the ratings from “negative” to “stable.” The stock closed at $32.46. It was trading above the 20-day, 50-day, and 100-day moving averages. The 14-day RSI (Relative Strength Index) stood at 56. This indicates that the stock isn’t overbought or oversold. GRFS has a weight of 0.42% in IBB’s portfolio.
Myriad Genetics (MYGN) fell by 2.5% and closed at $37.82. It still traded above the 50-day and 100-day moving average. However, it was below the 20-day moving average. Myriad Genetics presented new data on its myRisk hereditary cancer test at the 18th annual meeting of the Collaborative Group of the Americas on Inherited Colorectal Cancer (CGA-ICC) held on October 11–12, 2015, in Baltimore, Maryland. Myriad Genetics has a weight of 0.44% in IBB’s portfolio.