Baby Bull Round Two – Biotech
Here we go again. Remember when I warned traders not to short the baby bull in miners and exhorted them to not lose their position because surprises would come to the upside? Needless to say, many ignored that advice and they cost themselves dearly.
Now we have a second baby bull just getting started in Biotech. It still has a long ways to go. Yet I’m seeing some traders making the same mistakes again.
The size of the bottoming pattern and the massive volume in LABU is screaming that a big BIG move is coming. Don’t make the same mistake again that you made with miners. Get in and sit tight. This rally will last at least 2 months before it needs to take a break.
Today was the recognition day where the market realized the breakout is for real. We don’t need to look for an intermediate top until the weekly stochastics reach overbought. This rally is just getting started.