The ‘AI’ Dog Keeps Biting

Upward price action in the SOXX, held overnight and then some.

A discretionary exit was made in the pre-market session at SOXS 8.42 (not advice, not a recommendation).

Switching gears, we’re leaving the SOXX and AI alone for now.

As mentioned in a prior post, the life insurance sector appears to be correlated with biotech. It’s a fact the life insurance companies are talking a hit from ‘excess’ payouts.

We all know or should know just what’s causing the ‘excess’, so we’ll leave it there.

That leads to the biotech sector (SPBIO) and what appears to be a downside reversal.

Biotech SPBIO ($SPSIBI), Weekly

When looking at the chart for the past three years, one thing is certain; this is not a bull market.

The blue arrow shows the location of a short position opened (via LABD @ 14.70) in today’s pre-market session (not advice, not a recommendation).

A Hard Stop for the position is LABD 13.31.

Since that’s a fair distance from the entry, a discretionary exit may be made by the trader at any time based on the behavior of price action going forward.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279