From the Desk of Steve Strazza @Sstrazza
Breadth has expanded in a big way since last week, with more and more stocks finally joining in on the bull market as big-cap tech leaders take a breather.
At the sector and industry group level, our list of indexes that are in uptrends continues to grow.
Some notable new members on this list include regional banks, small-caps, and various speculative growth funds.
After years of basing in accumulation patterns, these groups are just now completing primary trend reversals.
What does this mean?
In its simplest form, it means there are more ponds we can fish in for long opportunities. There are more stocks -- and groups of stocks -- that are in uptrends.
It’s just more options for us.
One of the groups that has broken out with authority recently is the biotechs.
Regardless of what index you're looking at, the path of least resistance is now higher for this health care subsector.
We’ve identified some of the strongest biotech stocks with asymmetric risk/reward setups and clear levels to trade against.
We think these are the best vehicles to bet on a biotech rally into the end of the year.
Before we dive in, check out this textbook bearish-to-bullish reversal pattern in the Nasdaq Biotech Index $IBB:
As long as IBB is above 140, a new bull market is underway, and we want to be looking for biotechs to buy.
Let's take a closer look at some of our favorite names.
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