XBI Potential

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What is XBi?
XBI provides exposure to one of the broadest portfolios among US biotech ETFs. The fund equal-weights its portfolio, which in turn emphasizes small- and micro-caps and greatly reduces single-name risk. Thus, the weighted-average market cap is much smaller than some competitors. Unlike other funds in this segment, XBI is a pure biotech play, with relatively small pharma overlap as we see it. This highly efficient fund, which charges less than competing funds, has a history of beating its index due to revenue from securities lending. It has attracted a large asset base and trades with excellent volume. The fund’s alternative take on the space earns it a place on our Opportunities List.

Looking like we could see a pull back here or breakout.
Risk and reward is in our favor here. if it rejects, it can go to $95 area, if it breaks out, we can just stoploss for $1.

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