XBI Approaching Top of Wedge Pattern

XBI (Biotech ETF) has already rallied back to the top of the wedge in just one trading session since tagging the bottom of the pattern yesterday. Although this prices could pop above the pattern any day now, keep in mind that any breakouts over the next week or two run an increased rate of failing due to the year-end position squaring & low trading volumes. Previous & updated 60-minute charts:

2016-12-23T15:44:56+00:00Dec 23, 2016 3:44pm|Categories: Equity Market Analysis|Tags: , , |1 Comment

Biotechs Bullish Falling Wedge XBI IBB PBE

There are some potential bullish developments on the 60-minute charts of the biotech ETFs (XBI, IBB & PBE) worth mentioning. XBI (which tracks the same biotech index as the popular 3x leveraged ETFs, LABU & LABD) appears to be challenging the top of a nearly mature bullish falling wedge pattern while IBB has recent broken out above a descending price channel, also confirmed with positive divergence, on the 60-minute time frame as well. As I'm being extra selective on establish new positions at this time due to the extreme overbought conditions in the broad market couple with the negative [...]

2017-03-08T21:19:18+00:00Dec 16, 2016 10:49am|Categories: Equity Market Analysis|Tags: , , |6 Comments

Biotech Sector Outlook (video)

As this video ran longer than I had anticipated, I'll sum up my thoughts for those that don't have the time or inclination to watch the entire video. Despite the fact that the biotech sector has been drifting higher in a choppy but overall bullish trading range since the February lows, there is very little, if any, evidence on the long-term charts that indicates the bear market off the July 2015 highs is over. The biotechs very well could be on their way to new highs but again, the technical evidence to support that case just isn't there yet, although it [...]

2017-03-08T21:19:37+00:00Jul 26, 2016 3:36pm|Categories: Equity Market Analysis|Tags: , , , , , , , , , , , , |5 Comments

Equity Market Overview 6-13-16 (video)

This video takes a comprehensive look at the diversified U.S. stock indices as well as many key sectors of the U.S. market. These index & sector ETFs are discussed in the following order: SPY, QQQ, IWM, XLF, USO, XLE, XOP, XES, XLV, XBI, IBB, PBE, XRT, XLP, XLU & GDX.

2017-03-08T21:19:44+00:00Jun 13, 2016 7:30pm|Categories: Equity Market Analysis, Gold & Commodities|Tags: , , , , , , , , , , , , , , |8 Comments

Another Biotech Wreck Pending

Back on July 30th in this post & video, when the biotech sector was roaring to new all-time highs in one of the most powerful bull markets of any sector in years, if not decades, I made a clear case that a top in the biotechs, to be followed by a bear market of at least 20% was imminent. That call was made a mere 10 days, or 8 trading sessions after the biotechs printed an all-time high on July 20th, with the sector plunging near 50% in under 7 months since then. I stated back in this post personally not [...]

2017-03-08T21:19:56+00:00Mar 21, 2016 12:20pm|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , , , |5 Comments