AlexPrather
Short

Biotech: An end to a bubble?

NASDAQ:IBB   ISHARES NASDAQ BIOTECHNOLOGY INDEX FUND
207 1 3
Biotech has had an insane run up the last year, and specifically the last 14-15 months where it broke out of its 30wma channel and relative consolidation. At the moment, almost daily we are seeing new bioteches with all sorts of "ideas" no revenues, high valuations come into the market. this is similar to tech booms in my eyes, although not yet as overextended because the general public is not as invested in the stock market as it was back in 1998-2000. Regardless I believe this run up will end. will it be now? The hardest part about bubble is calling the top, and unfortunately timing is everything, All I can do is take high reward/ low risk opportunities and take tight tops on insane overextensions.

In this most recent rally again healthcare/biotechs was a considerable rallier and in the lead w/ utilities, although biotechs have probably had a much crazier overextension. I think we might be coming near the end, but as always, the last push is always the craziest as everyone goes all in. regardless it is usually at around this spot 14-18 months where bubbles in stock market sectors begin their decline or last push, so keep this on watch for low risk entries and as always have VERY tight stoploss when playing bottoms and tops. remeber you can always get back in once the situation favors you

Conclusion: Monthly RSi is over 87, weekly rsi is starting another breakout and etf is breaking out of upper bollinger band . A small short position could be taken here using a VERY tight stop loss with inverse 2x etf BIS. Preferably I would wait for one full candle over bollinger , w/ open and close over upper bollinger band on weekly. I
AlexPrather
2 years ago
wow what an amazing call, I ended up being 1-2 days early. Too bad I didnt act on it in any meanigful way.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out