There is no mistaking that the hottest and most productive group in 2013 was biotech. A slew of names were strong all year and finished on a high note. Given its strength, it made sense to see some give back early in the new year, and we saw it.
But I am a believer in the technicals, and when momentum stocks run, they tend to lead for a long period of time. Oh sure, we’ll have some choppiness, but the dips in the leaders should be bought – and that brings us to Biogen-Idec (BIIB). This stock has been in a strong upward trend. Even with the recent market sell off, BIIB had little-to-no price erosion. This high flyer has mostly been in the hands of institutional players, and they refuse to sell it. The chart is still in great shape, so any pullback signals a trigger to buy.