Buyers hesitated for a couple of minutes but they jumped in and started chasing the gap-up open very quickly. The iShares Nasdaq Biotechnology ETF (IBB) is leading the charge with a jump of over 4% due to the takeover news in the group. There are quite a few sympathy moves in the group as speculation about the next takeover target heats up.
Biotechnology has already undergone a correction from the July highs and is in an excellent position for a sustained run at this point. I'm adding to positions in names like Sangamo (SGMO) , MyoKardia (MYOK) , Horizon Therapeutics (HZNP) , BioXcel (BTAI) , and several others.
Overall market breadth is running 3 to 1 positive and there are other pockets of interest. One theme I'm looking at here is lithium which is used for EV batteries. Tesla (TSLA) has its annual 'Battery Day' on September 22 and there is a possibility they may mention Lithium Americas (LAC) which is developing a mine in Nevada close to the Tesla factory. Another lithium name that is acting well is Livent (LTHM) .
The indices continue to trend higher intraday and that will lead to some short squeeze and 'fear of missing out' the longer it continues. Quite a few bears were anticipating downside follow-through in the big cap technology names after the breach of some moving averages on Friday, but that is not developing.
This is great action for stock pickers right now especially if you stick to themes like biotechnology, SPACs, EV batteries and others.