IBB Underperforms the Market in the Last Week of 2015
(Continued from Prior Part)
Moving averages of IBB
In this part, we’ll analyze the moving averages of the iShares Nasdaq Biotechnology ETF (IBB). As of December 28, 2015, 66% of IBB’s stocks were trading above their 20-day moving averages, 55% were trading above their 50-day moving averages, and 50% were trading above their 100-day moving averages.
During the week of December 21, 2015, 53% of IBB’s stocks were trading above their 20-day moving averages, 60% of the stocks were trading above their 50-day moving averages, and 44% of the stocks were trading above their 100-day moving averages.
The above graph reflects the different moving averages of IBB’s holdings on a week-over-week basis for the month of December 2015.
Myriad Genetics trades above its 100-day moving average
Myriad Genetics (MYGN) rose 0.75% on December 28, 2015. The stock closed at $43.40 and was trading 8.7% higher than its 100-day moving average price of $39.92. The stock witnessed a trading volume of 374,000 shares compared to its three-month average trading volume of ~841,000 shares per day.
MYGN has an RSI (relative strength index) of 52, indicating that the stock is neither overbought nor oversold. Year-to-date, MYGN has given a return of ~27.4%. Its trailing-12-month price-to-earnings ratio is 35x. It has a book value of $9.9 per share. With its current price, the stock is trading at a price-to-book value of 4.38x. MYGN has a weight of ~0.48% in IBB’s portfolio.
Other stocks that are trading above their 100-day moving averages as of December 28, 2015, are Ironwood Pharmaceuticals (IRWD), Mylan (MYL), and Seattle Genetics (SGEN).
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