If transportation is shut down as a result of cyber attack, fuel pipelines off-line, no grease to lubricate the wheels or any number of other (planned … and don’t think there’re not) events, the last thing that’s going to help get anyone through, is a ‘stack’ of inedible metal.
It’s no secret this site’s been using the Biblical precedent of Genesis 41.
That is: Grain and Corn come first … then gold and silver.
The ‘stacking’ public has got this message reversed. Of course, this is not advice or a recommendation.
However, for those that can see, it’s so obvious the goal is ‘controlled demolition’ of the supply chain. All of it.
We’ll put everything back to ‘normal’ if you just get injected.
Meanwhile, biotech IBB, and SPBIO, have both posted a new daily low.
IBB is poised to penetrate the resistance area identified in this update, and come back to test the wide bar.
If that happens, we have a Wyckoff up-thrust in play. More analysis of biotech to follow.
In a situation that’s straight out of any typical trading text: ‘When a market goes into a throw-over and then enters back into the range, it’s a classical analysis sell signal’ (not advice, not a recommendation).
That’s where Moderna (MRNA) is now.
Moderna’s the ‘chief cook and bottle washer‘ for the world-wide kabuki theater. So, we’re using it as a proxy for the biotech sector as a whole.
Separately, biotech index IBB, is retracing but has not posted a new daily low.
Inverse SPBIO fund LABD, has formed an hourly reversal bar and looks to be forming a daily reversal bar. As of this update, it has yet to post a new daily high.
Looking at the weekly close chart, we can see the wide range.
In addition, there’s a significant bullish divergence that (technically) gives the dollar, UUP, enough energy to test the top of that range; a potential that’s completely opposite the current narrative.
A this juncture, silver, gold and the miners are still correlated.
Yesterday, a potential top and reversal in miners GDX, was identified. Today, it appears to be hovering and looking unsure of its direction.
GDX has not posted a new daily high or low as of this update.
A sustained dollar rally (along with the bond market?) would be unexpected given what seems to be apoplectic hyperinflation ranting.
Separately, in biotech, the market (IBB) has stalled to the upside in a higher than expected test. Inverse fund LABD, made a new daily low and it too, has stalled.
Downward thrust energy on LABD is dissipating.
Technical update for biotech, planned for tomorrow … market permitting.
It’s about 80-minuts before the close and already, IBB’s printed more single day volume than in the past four years.
There must have been a huge number of stops at the resistance area for price action to launch so decisively.
Now, as we get near the close we’ll see if it was just short covering, or if there’s really some kind of demand to hold and move prices higher.
The 4-Hour chart (below) shows a potential reversal as we head into the closing hour.
It’s the trader’s discretion on how to interpret and position (if warranted) in this environment. This site does not make recommendations.
However, based on the technical and fundamental data provided over the past year, we’re expecting at some point, a complete collapse of the sector; bottoming-out sometime in mid to late October, this year; not advice, not a recommendation.
If IBB continues to push decisively upward from here, meaning, tomorrow’s session is follow-through action, it will most likely (but not fore sure) invalidate the ‘collapse’ scenario.
We’re at the danger point
One of many other factors helping the bearish assessment is the release of this report: