Is It Closing Time At The Biotech Bar?

The following is the opinion of the author and has not been edited.

You don't have to go home, but you can't stay here.

Is the Biotech sector on its last legs? Not the companies, and not the stocks longer-term. But the sector's ongoing rally has become the poster child for out-of-whack allocation based on easy money. The sector is nearing a time and price point where that will need to be discounted. The video below contains actionable parameters for recognizing it.

Sad news greeted this week's open in Biotechs.

One component -- Gilead Sciences, Inc. GILD -- announced the death of a patient using one of the company's two major drugs. And both of the drugs may cause abnormally slow heartbeats.

Gilead is trading about 2 percent lower. So is the iShares NASDAQ Biotechnology Index (ETF) IBB, of which Gilead is a component. There are a couple of worse performers today in the index, but -2 percent is about the mean.

Today's performance(s) might seem contradictory to the gap up at Friday's open. But the two sessions are no less related to each other than are two sides of the same coin.

And while the index might extend higher, there are signs of this latest round of buying being the last until a major correction has run its course.

In this video, I review the 10 compenents of the IBB index, identifying their specific objectives and actionable parameters. Components are reviewed in order of their weighting in the index, smallest to largest, with specific actionable parameters..

• BioMarin Pharmaceutical Inc. BMRN, grudgingly higher, and being rewarded for its trouble.
• Mylan NV MYL, established, extended and dull.
• Illumina, Inc. ILMN, only attacking resistance, which at least doesn't point down.
• Alexion Pharmaceuticals, Inc. ALXN, all broken out, with nowhere to go.
• Vertex Pharmaceuticals Incorporated VRTX, unless a dip is quickly rejected, deeper is cheaper.
• Regeneron Pharmaceuticals Inc REGN, this is the one that's ready to drop, if only to wait for the rest.
• Gilead, its bad news is quantifiable, so it's holding up alright.
• Celgene Corporation CELG, if not the best performer, then the most reliable.
• Amgen, Inc. AMGN, not so fast there, already retesting its high after shallow dip.
• Biogen Inc BIIB, laggard making up for being tardy, and being rewarded for showing up.
• Check out the video for more.