The last update on Moderna, here, said that price action had slammed into resistance.
The chart shows that MRNA, has gone from resistance. to wedge, to measured move.
With the S&P and Qs, stalled at all-time highs, SOXX, DIA, XLF, IYR well off their highs with the biotech sector in an apparent reversal, one has to wonder what’s next (not advice, not a recommendation).
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 Dow (DIA) all-time highs were on August 5th, the S&P (SPY) on August 13th, the Qs (QQQ), way back on June 3rd; Semiconductors (SOXX), June 22nd, and the list goes on.
We have updates by the day, if not the hour, like this, this, and this, letting us know in real-time, the air’s coming out of the bubble (not advice, not a recommendation).
The chart has an added bonus, showing the potential trading channel.
Trade Action: Yesterday, XBI-26-11, was exited at break even, then re-established (short) as XBI-26-12, and well-in-the-green by the close (not advice, not a recommendation).
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.
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.
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.
It’s been two days of straight up, for the Nasdaq.
Tomorrow could make it a third but is that ‘normal’ market behavior, given the chart at left?
After breaking through one level of resistance and then, hitting another, the more probable action is to retrace and test the lower support (not advice, not a recommendation).
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.
If the Nasdaq, QQQ manages to breakout higher from its wedge pattern, the rally may last into August; the top of the market in 1987 (not advice, not a recommendation).
Such a rally would need to start soon, if the pattern is in-effect.
Otherwise, we may see it morph into something else or fail, with a decline from here.
Nasdaq QQQ, Daily
Note how Force Index (zoom area) has oscillated itself into an inflection point.
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.
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.
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).
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.
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 Russell 2000 has been recovering (along with the rest of the major indices) from the lows posted on April 7th, and 9th, this year.
What the index has not done, unlike the Qs, and the S&P is post new-all-time highs.
At this juncture, tracking fund IWM, is at a Fibonacci 61.8%, retrace, and giving just a hint, it might be finished with further upside.
Russell 2000 ETF, IWM, Daily
As the chart notes, we’re in up-thrust ‘position’; meaning, there’s no new daily low to help confirm a potential reversal.
As presented many times in previous posts:
‘In the markets, you’re either early, or late’.
Upside risk (on a short) is set at last Friday’s IWM high; risk is low (but not zero).
With that said, a short position was opened (after-hours session, yesterday) in the IWM, via leveraged inverse fund TZA, trade TZA-25-03 (not advice, not a recommendation).
Note: There was no ‘new daily low’ in the IWM tracking fund to ‘confirm’.
However, in the pre-market, IWM is trading lower at 214.72, and threating to post a new daily low at 214.13.
Open Positions
At this juncture, 8:50 a.m., EST, open positions are as follows (not advice, not a recommendation).
Short Wal-Mart: WMT-25-03, Stop @ 98.16
Short Tractor Supply Co.: TSCO-25-01, Stop @ 52.93
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.
