11 thoughts on “BIOTECH UPDATE

  1. Steffmeister

    My analysis is playing out nicely, Gold up and Spx stalling, ready for a breakdown in May.

    Gold was ready for a correction move early/mid April but it never happened, so the cycle has inverted. A cycle can invert at any time so you must keep your guard up.

    We are in a deflationary cycle and it will not end until 2019.

    1. Gary Post author

      LOL if we are in a deflationary cycle then gold will be taken down. Look what happened to gold during the last deflationary cycle in 2008.

      No no no, gold is already warning that an inflationary cycle is beginning.

  2. Surf City

    Yes, BioTechs have found resistance. With Apple and the broader market struggling a bit here will the FMOC through the market another lifeline or will they surprise and either raise rates or perhaps deliver a more hawkish message? Here are some of my charts on IBB, SPX, TLT and Gold.

    Bonds / TLT pricing in a rate hike?

  3. bill

    Holding LABU till at least friday, earnings are on Thursday with upgrades or down grades either way we will get the much anticipated break out or we break down and sit and churn…

  4. babolat

    Gary, couldn’t it be the dips in XBI are related to SRPT weakness and not so much sector overall? Looking at AMGN, GILD, and others, I don’t see the same weakness. Perhaps I’ll watch that 100dma closely from here on out.

    1. Gary Post author

      Very possible. As I said in my morning report I would really like to see the stock market drop and give us a recognizable DCL over the next 4-6 days. That would be something I could work with and it would take the runaway move off the table and put us back on a naromal cycle pattern.

  5. plo888

    Not even a week in to you runaway move call and you quickly do an about face. Market are not designed to do what you expect it to do. ibb to 264, spy to 186

    1. Gary Post author

      Nothing has changed for me in the metals. I’m just patiently waiting for a clear ICL. Probably not till June. That’s when I intend on buying heavily.

      I’m certainly not interested in chasing 21 weeks into an intermediate cycle. A top could form at any time and catch you in an intermediate decline.

      I made enough on the gold trade. I’m not interested in doing something stupid this late in the cycle because I couldn’t control my greed and I didn’t have enough patience to wait for an ICL.

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