Chart of the Day - Tuesday, June 23rd, 2020

Today's Chart of the Day was shared on Twitter by Strategas Research (@StrategasRP). It's a weekly bar chart of the Nasdaq Biotech Index over the past decade. Some of the top holdings in this index include; Amgen ($AMGN), Vertex Pharmaceuticals ($VRTX), Gilead ($GILD) and Regeneron ($REGN). Biotech had a terrific run from 2010 up until 2015 when Hilary Clinton allegedly 'killed biotech' with a tweet about prescription drug pricing. To be clear, we don't care what killed that stellar trend, or why it ended when it did. The point is, Biotech stocks are finally breaking out to all-time highs after spending the past five-years consolidating their gains from earlier in the decade. Strategas emphasizes, "This is one of the best charts we can find, anywhere." Breakouts from multi-year bases like this are a real crowd pleaser among technicians. As we like to say, "the bigger the base, the higher in space!" Could this be the start of a new cyclical bull market for Biotech stocks after going nowhere for five the past years?