Every trader worth their salt needs to trade in at least one crappy biotech.
I say trade, but chances are you will end up an investor... just like those guys who bought at $100.
AXSM has a very nice pipeline. The drop was due to incorrect FDA filing. Perhaps the clean up their act and release some drugs for all the kids (and elderly) to enjoy.
I was meditating on the container ship issue. The root issue is China does not need raw materials for construction, because they overbuilt. Theis is due to the evergrande situation, and the collapse of their real estate sector.
Their alternative to real-estate was tech, specifically the Digital Yuan. The problem was it was bad, really bad. Instead of making DY...
Looks like a 50 SMA test. Any lower and we open the door for a test of the 100 SMA.
This sell off is different than the last few, feels more like march than june.
Wait for confirmation before buying the dip.
Left side is current market. notice the perfect time cycles.
Right side is last year. notice how the vix rainbow is signaling on the right but not yet on the left.
Safe short would be to give current market another week or 2.
Poor Vix Ratio
High Vix Correlation
Market is over extended (what is this, a 5% rally without a 1% drawdown ?!)
Looking for short entries in rate sensitive names otherwise cash.
If we do sell off hard, targeting the 50 and 100 daily SMA.
- Breadth sucks
- VIX is signaling, especially with banks and tech
- Earnings next week
- Bonds signaling
- CQQQ signaling
- Bearish bias, but expecting "Le Chop Chop" around here
- Playing each level, waiting for volume reversals then trading with your favorite momo indicator
- First commodities, then the miners, then the industrial equipment, then the transporters, then the financials... now the hedges are coming off.
- See support at 320 and 329.
- Ratio says put buildup is over
- Ratio usually double bottoms (hits green twice)