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Moving Averages of XBI’s Holdings Have Improved

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Moving averages of XBI holdings improved

The moving averages of the stocks in the SPDR S&P Biotech ETF (XBI) have seen drastic improvements recently. The number of stocks trading above their 100-day moving averages has doubled since October 23, 2015. As of November 2, 2015, 86% of its stocks were trading above their 20-day moving averages, 54% of its stocks were trading above their 50-day moving averages, and 34% of its stocks were trading above their 100-day moving averages. As of October 23, 2015, these numbers stood at 64%, 30%, and 16% for 20-day, 50-day, and 100-day moving averages.

The above graph reflects the moving averages of XBI holdings over two different periods. The moving averages of XBI holdings have been on the rise since October 23, 2015. Out of the 101 stocks in XBI, 87 stocks are trading above their 20-day moving averages, 54 stocks are trading above their 50-day moving averages, and 34 stocks are trading above their 100-day moving averages.

RARE moves into 100-day moving average zone

Ultragenyx Pharmaceuticals (RARE) rose 10.4% for the day and closed at $109.63. The stock surpassed its 20-day, 50-day, and 100-day moving averages. The stock went up on the news of research collaboration with Arcturus Therapeutics. As per the press release, RARE announced that it has “entered into a research collaboration and license agreement to discover and develop messenger RNA (mRNA) therapeutics to certain rare disease targets using Arcturus’ UNA Oligomer chemistry and LUNAR nanoparticle delivery platform. Under the terms of the agreement, Ultragenyx will make an upfront payment of $10 million to Arcturus.”

RARE has a weight of 1.0% in XBI. The other stocks that are trading above their 100-day moving averages are Radius Health (RDUS), Myriad Genetics (MYGN), and Geron (GERN), which gave returns of 4.7%, 3.7%, and 6.1%, respectively.

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