This week and next as you know is the heavy quarterly rebalance period for passive institutional money. Passive tute money spends just as good as active tute money and often with less concern about the actual price of the execution and more about pegging the close. With over 1.5 mill shares on/near /after the close today it will be interesting to see what % of the total was XBI related. However, when passive tutes orders are complete for the quarter they don't support the stock (nor cause resistance) at any given level.
The XBI added 210,000 of Ziop between Wed and Thursday's closes and I'll report sometime on Monday what they did on today's close. Given the share price direction one would expect it was a rebalance addition.
I remember one of Berks teachings that stocks can remain in overbought or oversold conditions for a decent amount of time but with Ziop running at that upper Bollinger band level and slow stochastics in overbought territory and passive tute rebalance well over 1/2 done I expect Ziop to certainly pause or dip from here unless positive news is released. I remain long Ziop stock but expect all of my short March 3.50 calls to be exercised against me. I don't plan on replacing that called stock portion unless a good buy/write presents itself with decent implied vols.