Fundamental & technical analysis on a few key sectors including the automakers, biotechnology, semiconductors, technology as well as the volatility indexes. The following stocks & sector ETFs are covered in this order: F, GM, TSLA, TM, XBI, IBB, PBE, SMH, XSD, SOXX, XLK, TECS, $VIX & $VXN.
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:
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 [...]
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 [...]
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.
A detailed look at the chart of the biotech sector ETFs: XBI, IBB & PBE as well as some of the leading stocks in the biotech sector. As this video went a bit longer than I anticipated, I decided to post the daily charts of some of the top individual biotech stocks in static format below.
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 [...]