Thursday, October 17, 2013

The leader of the Biotech bubble

I've written about Gilead Sciences (GILD) before. It's one of the stocks I'm both short and in the red. It's one of the three biggest Biotech companies in the world and of them it has the most bubbly chart. It reminds me of one of the leaders of the Dot Com bubble: Microsoft.

Before the top it started to get very jagged. It hade a large number of tops and overshoots (when the chart goes back down and then shoots up over the last top). This is what happened next:

If GILD follows Microsoft it would mean one more big overshoot up and then a big rollercoaster fall down.

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