Biotech may resume its bull run

About 2 years ago I saw a strong uptrend for the biotech sector. Hope you would agree with me that it was a perfect call! As shown in the chart below, PBE, the ETF I held back then, has substantially outperformed the overall stock market (the green line: S&P 500). But about 2 months ago, I noticed the biotech started to shown its weakness and was likely in the correction mode. To protect my profit, I sold my PBE position to cash in. Looks like it was also a good call.

 

Now it appears the biotech sector is resuming its bull run again. It is especially important to note that the biotech has again shown its relative strength over the general market starting 2 weeks ago. In other words, it increases much more than the market when up or decreases much less when down. This kind of relative strength often indicates that this uptrend has its teeth and is sustainable. I'm considering to get back to this sector. In addition to PBE, another good ETF for biotech is IBB.