While Yamada noted “You never know how far a parabolic can go up but you do know is when it does come down it’s going to hurt,” she also told Yahoo Finance that when securities like IBB fall 25%, there is often some sort of recovery.
Yamada’s technical views on IBB come on the cusp of what could be an epic earnings week for the ETF. On Tuesday, Amgen (NasdaqGS: AMGN), Gilead (NasdaqGS: GILD) and Illumina (NasdaqGS: ILMN) step into the earnings confessional. Each is a top-10 holding in the ETF and the trio combine for 20.6% of the fund’s weight. [Huge Earnings Week for QQQ]
Three more IBB constituents – Biogen Idec (NasdaqGS: BIIB), Alexion Pharmaceuticals (NasdaqGS: ALXN) and Celgene (NasdaqGS: CELG) – report this week. Those are IBB’s second-, third- and fifth-largest holdings, respectively, and combine for 23.6% of the ETF’s weight, according to iShares data.
iShares Nasdaq Biotechnology ETF
