… What It Could Mean For Biotech …
So, now it starts.
At least one previous post (No.1, linked here), has shown the phenomenon is not a one-off event.
Now, according to the link above, there’s an estimated 300,000 affected … and we’re just getting started.
Insiders Sell … Retail Buys
Do those at the highest levels know their customer base is about to evaporate on a world-wide basis?
While they may not know every detail, they at least know something’s up. Steven Van Metre discusses the insider selling in his latest update, linked here.
Front End Phenomenon
We’re still at the beginning stages of an event that in the opinion of this author, is going to last the lifetime of those reading this post.
‘Hyperbolic statement’ one might say.
To that, I would counter with this; when it was posted, the ‘elephant’ was hyperbolic as well.
Now? Not so much.
Keeping that long range thinking in mind also keeps one from choosing the ‘insane’ human behaviors discussed by Dan (I Allegedly) in his latest post.
So, let’s take a look at what type of insanity we have going on in the markets today.
Of course, that points us to our chief cook and bottle washer, biotech (IBB).
When we last left our hero, savior, and protector of all that is natural immunity, the biotech discussion was on Moderna (MRNA).
The thrust higher, detailed in this post was thought to be too fast for a sustained reversal. Well, it was right and wrong at the same time.
Moderna wound up reversing … sort of.
At the same time, the biotech sector headed lower to support and is now moving higher.
The weekly IBB, chart has the support (lower blue line) and potential up-thrust location (also 50%, retrace) identified.
The zoom shows the narrow gap between the weekly bars and 50% retrace.
If price action makes it past the resistance bars and into the gap, IBB would then be in up-thrust position (not advice, not a recommendation).
Charts by StockCharts
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