Biotechnology & Health Care Stocks & ETFs Continue To Lead The Stock Market Higher

Biotechnology and health care stocks and ETFs continue to lead the market.  This is becoming a dominant theme within the broad technology sector.  It is likely that health care and biotechnology stocks continue to grow in relative market cap weight in the major US indices (i.e. NASDAQ 100 & S&P 500).

Akamai breaks out. Tech leadership expands.

What began as market leadership in biotechnology stocks quickly spread to internet stocks and is now perpetuating in the NASDAQ 100 mega cap stocks.  We are entering a period of broad based tech market leadership which may continue for the duration of this bull market that began in 2009.  It is important to note that both the biotechnology and the internet index has doubled in a 2 year time frame.

QQQ Continues To Lag S&P 500. PerfChart QQQ SPY EEM XLF IWM MDY FDN IBB XIU

Mega cap tech stocks (QQQ) have been lagging the S&P 500 for most of the year, largely due to the poor performance of a few big names (i.e. AAPL, MSFT, INTC).  Biotechnology (IBB), on the other hand, is way out front.

IBB vs. FBT Extreme Biotechnology ETFs

If you can stomach extreme volatility (ie. a near 50% correction like in 2011), FBT by First Trust is the ultra biotechnology ETF.  They're also the creators of FDN, the Dow Jones Internet Index ETF which is also on fire (it's 10% GOOG).

Biotechnology Mega Cap Stocks 5 Year Chart Comparison

Biotechnology is leading the way forward for the NASDAQ.  AMGN, CELG and GILD are the biotech mega cap leaders.

Biotech Shows Strength While Mega Cap Tech Gets Hit

This is unusual.  Mega caps hit will selling due to earnings misses, yet biotech shows strength.  IBB will lead us out of darkness...

Shawn