What’s in a tweet? Check out various biotech stocks…and compare them to gold. Here’s your analysis of $IBB $MYL $TEVA and $GLD (August 24, 2016)
IBB MYL TEVA IBB TEVA IBB TEVA MYL GLD GDX TEVA
Kind of a crappy day in the market, a particularly bad day for biotech. But this may be an opportunity, we just have to see how it goes for the next few days; really something that you want to look at next week. Because here’s the deal: Look at this on an intraday basis, “Oh my gosh! What happened here? What the heck happened here that made this go down?” Some of you may know this, some of you may not. Hillary Clinton, the ‘biotech babe’, tweeted that “EpiPens can be the difference between life and death. There’s is NO justification for these price hikes.” Which, by the way, I don’t really disagree with, but that’s just me. You can see about where this took place and things really started to accelerate to the downside. But none of that stuff means anything, and she’s made that tweet. I remember one time when Bill Clinton was president, he made some innocuous comment about the biotech sector and it absolutely just got crushed. And then he said the next day, “One little thing I said and I crashed the biotech sector.” This happens with politicians.
But the one that you really want to keep an eye on is Mylan ( NASDAQ:MYL ). This is the EpiPen, expletive deleted. They had no competition. It was amazing to me that CNBC started their segment yesterday morning, before they figured it all out, just talking about Mylan ( NASDAQ:MYL ) in isolation. They just have no competition right now. The other one got knocked out of the game for a while. So if you look here at the daily chart, this happened yesterday basically right at the open on some really nasty press, and then this continues lower. But if you look at Teva ( NYSE:TEVA ), this has a whole different thing. They are the generic drug manufacturer, maybe they’re going to have a hand in these EpiPens. But look at what happened here. At the same time as the biotech sector ( NASDAQ:IBB ) started selling off, so did Teva ( NYSE:TEVA ). The difference was that this came down, met a ton of buying, look at the volume here on the 15-minute chart, it met a ton of buying at $50.00 and then traded up a bit.
Why am I talking about this? I’m saying a tweet from HRC has absolutely no bearing on Teva Pharmaceutical ( NYSE:TEVA ). It doesn’t have any bearing on anything. But these are the types of opportunities that you get in this type of environment. Pro or con HRC, Libertarians, Progressives, Conservatives, all of that stuff, it doesn’t matter. There’s going to be a lot of headlines back and forth and you have to really stop and think, is this sell-off an opportunity? Or, is it a signal that I really hit the road? Here, with Teva ( NYSE:TEVA ), I think it’s an opportunity and so does the market. The reason I’m saying that is because this HAD the fall DURNING the day, then started to rebound. The IBB ( NASDAQ:IBB ), not so much, it just kind of stabilized. So withTeva ( NYSE:TEVA ), I would say yo. With Mylan ( NASDAQ:MYL ), frankly, I would say no.
So what I was just talking about, as far as, is it an opportunity? Or is it a signal to hit the road? Look at gold ( NYSEARCA:GLD ) for example. I don’t really care about this move that happened right after the close. What I care about is this: With Teva ( NYSE:TEVA ), with biotech, probably an opportunity there. With gold ( NYSEARCA:GLD ), not so much. This ( NYSEARCA:GDX ) is a major deal and the only news that this is on is the speech on Friday by Janet Yellen, what’s going to happen. So this is a KEY technical breakdown. This is the end of the road. With Teva ( NYSE:TEVA ), it hasn’t been the greatest acting stock anyway. But I think one thing that at least I would say pretty definitively, until or unless the stock proves me wrong, lower highs, lower lows, that’s what a downtrend makes; a breakout above the 50, another channel down, a BIG dramatic pullback, huge volume that only came to 50.00. It essentially TESTED this low, this level, and passed the test. So I think this is your opportunity for Teva ( NYSE:TEVA ).
Free Chart