Is the XBI Okay? Why Are We Seeing Record Lows?

October was a brutal month for the index with >80% of the components in the red, with mroe than half of these down more than 10%!

Despite the 2.5 sigma bounce to start November, more than 70% of publicly listed biotech stocks trade with an enterprise valve below $100 million. Remarkably, a record >30% of the entire universe currently trade below cash value. The key debate is whether the low is in for the year or if the index will break below the quadruple bottom support. Levels below this support have not been seen since 2016.