Mish’s Daily: Focus on Big Brother Biotechnology IBB

2 weeks ago 147 views 4 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Focus on Big Brother Biotechnology IBB

Written by Michele ‘Mish’ Schneider

As of the latest data available, the top three holdings in the iShares Biotechnology ETF (IBB) are:

1. Gilead Sciences, Inc. (GILD)
2. Amgen Inc. (AMGN)
3. Vertex Pharmaceuticals Inc. (VRTX)

These three companies collectively represent approximately 25.68% of the ETF’s total assets.

With GILD in top technical position, AMGN and VRTX are also looking interesting.

As part of our Economic Modern Family, Biotech the ETF, is an interesting member.

Part cyclical and part non-cyclical, IBB has been a political football for years. Big pharma also represents a significant lobbying influence.

I also figure you watch a chart long enough, it starts to speak louder and louder.

The daily chart shows that today, IBB is clearing the 50-DMA. The slope on the moving average is down.

That is a pretty good reason why the last 4 times IBB tried to clear the 50-DMA, it failed to hold above it.

Weak recuperation phase.

So, the first thing is we need to see a second consecutive close above the 50-DMA.

Real Motion shows a better scenario over its 50-DMA as in the momentum is improving.

IBB performs on par with SPY.

On the weekly timeframe,

I like where IBB found support during the flush in 2023.

Similarly, the flush this past April 2025, IBB found support around the same levels or approximately $115.

Now, it is possible a double bottom on the weekly chart is forming.

The stronger signal on that double bottom will be a weekly close above 123.50.

But, since it is only Monday, we go back to the Daily chart and will first watch for confirmed phase change.

IBB has been underperforming the market for the last 3 years. This is the classic contrarian trade potential, only advised if you use chart analysis and risk management.

Educational purposes only, not official trading advice.

For more detailed trading information about our blended models, tools, and trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

Get your copy of “Plant Your Money Tree: A Guide to Growing Your Wealth”

Grow Your Wealth Today and Plant Your Money Tree!