Gilead May Work as a Tell for Biotech

Biotech catching a bid! That's not easy, given that bellwether Genentech (DNA - commentary - Cramer's Take) is on vacation from the bid side, despite the Avastin news.

Biotech's another casualty of the minerals momentum play. The highest-quality companies have just taken nosedives here.

When we have had these gigantic selloffs before, what has tended to wake the group up from its slumber and slide is a takeover bid from an established pharma or a big FDA approval. We have had a couple of approvals of late, but they have done nothing.

I am watching Gilead (GILD - commentary - Cramer's Take) as my tell. Gilead found its way into Morgan Stanley's model portfolio today, and is actually up. That could embolden other analysts to step up to the plate. Don't forget Alkermes (ALKS - commentary - Cramer's Take) and Cephalon (CEPH - commentary - Cramer's Take) are before the Food and Drug Administration for an anti-alcoholism drug. An approval could give you a second day's worth of up action.

Again, just trying to assess leadership. Not a lot of it out there.

At the time of publication, Cramer was long Cephalon.

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