Biotech Breakout: Strategies from Josh Brown on Trading the Surge

Josh Brown explains how breakaway gaps signal strong biotech moves, citing Merck’s recent Phase 3 success with Moderna’s mRNA vaccine combined with Keytruda. The trial met its primary endpoint, driving Merck to an all‑time high and adding roughly $100 billion to mRNA‑linked stocks. He notes the gap formed above $137, held above $145, and remains supported by rising 50‑day and 200‑day averages. Brown also highlights Amgen’s steady ascent, its broad product‑line growth, raised guidance, and technical strength, with the stock holding above the $390‑$400 zone and the 200‑day average near $353 serving as a floor. He concludes that while RSI readings are elevated, the underlying fundamentals justify the momentum, and traders should watch for a close below the gap low or key support levels as a sign of reversal.

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