Biotechnology belongs to the sectors of the stock market which were rather moderately affected by the Coronacrisis. In fact, in the second half of april the NYSE ARCA Biotechnology Index even managed to surpass its pre-corona levels to attack its previous high at about 5.420. However the advance of the preceding days was too strong to get beyond that level and in...
The biotech sector is really interesting when you dive down into the symmetry of the last few cycles. Early 2000s-2008 and 2016-2018 are mini rallies within the bigger wedge. If this pattern is to continues, you can look for entry around the end of 2020 when we bump up against the larger support line (around $3600), and expect to hit the resistance of the larger...
A blowoff top is possible to around 7000. This happened during the last stage of a wave 3 of the same order.
Anyway the situation is getting riskier. There are signs of fatigue. The ascent is less steep, there is a divergence, fib relations would indicate a possible termination of the impuls right now, since wave 5 would be 76% of wave 3 and wave 1 is 0,24 % of...
Definition: The Bump and Run is a reversal pattern that forms after excessive speculation drives prices up too far, too fast.
The first phase is a uniform bullish trend with a trend line slope of 30 to 45 degree, then a period of excessive bullishness with a trend line slop of 50+ degrees, and finally the Run phase which is a period of sell-off.
I am looking for...
Definition: The Bump and Run is a reversal pattern that forms after excessive speculation drives prices up too far, too fast.
The first phase is a uniform bullish trend with a trend line slope of 30 to 45 degree, then a period of excessive bullishness with a trend line slop of 50+ degrees, and finally the Run phase which is a period of sell-off.
I am looking for...
Here we are today. Financials breaking down and under performing. Biotech going parabolic. SPY and XLF is scaled left and Biotech index and QQQ scaled right. I think IBB will continue to run for a bit longer but any harsh snap in this industry will likely be similar to what happened in 2000s. Speculation will burst, and people will be running out the doors. ...
We've heard that financials have led this rally too new highs and we need financials to continue to run. It isn't until institutions need to find more yield and start investing in speculative areas such as IPOs and Biotech (this should sound very familiar). This run on financials and SPY is amazing (scaled left) . Biotech and QQQ/COMP is just as...
