Biotech … The Big One?

September 10, 2025 By in $SPSIBI, Biotech, GDX, GDXJ, Gold & Silver, Gold Miners, Greg Hunter, HOOD, IBB, Karen Kingston, LABD, LABD-25-10, Nasdaq, ORCL, Positions, QQQ, S&P, S&P 500, SPBIO, Speck-Effect, SPY, The Speck, XBI 3 Comments

Next Leg Lower

Unfortunately, the (mad scientist) graphic at left, is not too far removed from what’s really going on in biotech.

While the S&P, Nasdaq Qs, Gold Miners, Semiconductors, Financials, The HOOD, ORCL, and others, continue to make all-time highs, conspicuously absent is biotech, XBI and IBB.

Now, it appears that quietly, in the background, XBI is reversing to the downside.

Biotech XBI, Daily Close

The up-thrust is there, but is a weak penetration of resistance.

Even so, on the ‘test’, volume contracted by -49.24%, when compared to volume on the upside penetration.

Until proven otherwise, this set-up appears to (currently) be the best short opportunity.

With that said, all other short positions have been closed to focus on biotech.

Leveraged inverse fund LABD is being used at this juncture: Trade LABD-25-10, with stop at the session low (not advice, not a reocmmendiaton).

Stay Tuned

Charts by StockCharts

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

3 responses

  1. Lance’s substack has a pair of charts highlighting the huge divergence between home builders and lumber prices. And another with energy stocks and oil prices. To summarize, passive money flows into ETF’s have distorted stock prices and these divergences will resolve someday via a big correction. Which we kinda already knew. But the divergences are getting more pronounced given the recent weakness in commodities.

    Liked by 1 person

    • Thank you for the heads-up on the divergences.

      The lumber/homebuilder topic reminded me of a YouTube channel called Uneducated Economist. He sells lumber and building products in Astoria Oregon as a retail outfit, so he has his finger on the pulse of that industry. He broadcasts updates from his car or truck while he’s on lunch break.

      You may already know of him.

      If not, take a look and see what you think.

      On the builder side, I’m watching HD, BLDR, LEN, PHM, and XHB, the (ETF) index.

      Of those, it looks like BLDR is about to break down out of its wedge, PHM has posted an up-thrust as well as the index EFT, XHB (not recommendations).

      It feels like something is about to break 🙂

      Thanks again,

      Paul

      Liked by 1 person

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