Way back in December I called attention to the huge explosion in volume in the triple leveraged mining fund NUGT. I warned that it meant smart money was accumulating ahead of a big move that was coming. Of course the usual dumb money crowd said that I was wrong. They had a million excuses for why I was mistaken and it was different this time. Well the rest is history and the mining stocks soon rallied 85%.
A huge explosion in volume is now occurring in the energy sector. As usual the wrong way crowd is disbelieving. They are convinced that the “fundamentals” will turn oil back down and as usual are missing another great opportunity.
And now we have probably the most intense surge of all in the biotech ETF LABU and again, Joe SixPack cannot see past the daily action to the bigger picture. An incredible investment opportunity is developing in this sector. Biotech is in the final stage four bottoming process of the stock market’s 7 year cycle low. You can learn from previous mistakes and take advantage of this opportunity or you can wait until it has rallied 100, 200 or 300% before you finally get on board.