Most Interesting Chart of the Week:
Biotech Sector Breakout?
At StatsEdgeTrading, we lean heavily on systems with decades of backtesting behind them. But that doesn’t mean I ignore macro setups — especially when they help prioritize the trades that do show up in the systems.
This week’s chart that caught my attention: XBI, the biotech ETF.
📊 Why XBI?
Just logged two weekly closes above anchored VWAP from the prior cycle high
Anchored VWAPs, especially from major highs, are key sentiment gauges — and often magnet levels for breakouts
We’ve seen similar moves in $META, $NVDA, and $HACK where breaking above the AVWAP sparked sustained uptrends
Interest rate context: biotech is highly rate-sensitive due to its reliance on debt-fueled R&D. A falling rate environment can unlock capital and spark sector interest.
🧪 HALO Trade Setup
One name inside XBI that mirrors the broader setup is HALO. It recently coiled above its own AVWAP from the May tariff scare, and is breaking higher. This could be a longer-term hold if biotech gets hot.
Example trade structure:
Entry: $85
Stop: $80
Target: $100+
That’s a 2:1 risk/reward on first target, more if the rotation sustains.
🧠 Why This Matters Systematically
Every Friday, I run the scans that produce 30+ swing setups for StatsEdgePro members — all filtered by backtested edge.
When multiple biotech names show up, and I’ve already seen something big in the ETF itself?
📌 That’s when I lean in.
Even though I trade systematically, I always look at sector context to help prioritize names and stay in sync with what the market is telling me thematically.
📬 Want access to all of next week’s trade ideas (plus day trade alerts and investment portfolios)?
👉 Join StatsEdgePro and trade with edge.
Until next time — get your plans set this weekend, then get away from the screens.