The recovery is slowly underway in the land of biotech, and these equities are getting a lift from Pfizer’s (PFE) planned merger with Allergan (AGN), announced Monday. Since testing the current down trend at $339 two weeks ago, the NASDAQ Biotech Index Fund (IBB) pulled back slightly to re-test support at $320 before bouncing and breakout of of the current trend last week. This is the next step to confirming that a recovery is fully underway, and our inclination is that we’re on our way back to highs as the long-term trend resumes. The PFE-AGN news, the upcoming American Society of Hematology annual meeting, and the JP Morgan healthcare conference in early January all act as tailwinds for the sector. How long this move lasts in the face of an election year becomes the follow-on question, but this is still months away. For now, we like how the sector is setting up for a run into year-end.
Pulling back further, I want to point out what biotech has done over the last few decades, as it offers some better perspective on the bull market we’ve experienced for the last three years. 
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