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Friday, April 26, 2024

XBI - Support and Resistance

XBI Biotech has been weak and is only finding some temporary support at the 200 daily average. This is a common chart and typically lower prices follow. Daily

55 comments:

  1. XBI I believe is about to plummet to $75

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  2. While SPX had seen a 5% correction, Biotech has dropped 20% so far...

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    1. SC - oil pulling back - let us know when you think is a good time to load up on XLE calls? or still have more time to wait?

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    2. Oil consolidating a little. Looking at XLE the weekly chart continues to show tremendous strength with both 50 and 200 averages pointing up. We do have to wait for timing, the 200 should start turning up more aggressively.

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  3. well, one dovish comment by powell, reducing runoff by 25Billion a month and one bad job report, bearish thesis wiped out for biotech now

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    1. VIX is relatively low but can stay lower for extended periods so it's all about timing. I think we could do something with VIX this year possibly to 30. So let's wait until it's ready.

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  5. As I say the best opportunity out there in my view is long oil shares.

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    1. Probably it will see a fresh high but it's going to have more difficulty advancing. It'll be slower going with corrections.

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  7. META certainly looks like a short...

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  8. Americans spending most on groceries in 30 years!!!

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    1. Yor right realstate is gonna pop to upside and my target spx could be 200 points higher on spx 5471 to 5500 last time july 12 we hoped 150 plus pointsin 2 weeks let's see what happens

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  9. Have a tendency to manipulate these things out of control

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  10. Market has been up past 3 weeks. Time for correction yet?

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  11. https://x.com/NorthmanTrader/status/1792915308312732079

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    1. Interesting weekly SPX RSI here...see if it develops into anything like the past two...

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  12. "Biden to release 1 million barrels of gasoline to reduce prices at the pump ahead of July 4"

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  13. The attempt to manipulate gasoline prices may backfire and kick off panic buying instead!

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    1. Oil pretty much the only commodity that hasn't spike yet

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    2. SC - do you think it's time for XLE calls yet? Oil getting ready to spike soon?

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    3. It's a go and will happen. Charts look excellent for Oil. I notice major Oil companies have been buying everything. However this is a big play and we're still waiting on timing. For the XLE calls plan to position just as it happens.

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    4. ok will wait for your signal - thanks

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    5. Oil getting crushed. Economy about to break lol?

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    6. Oil getting ready to move to 95-100? Biden going to drain more SPR before election. This move going to backfire badly at some point soon?

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    7. https://www.yahoo.com/finance/news/warren-buffett-9-day-buying-173906465.html

      Buffett buying more Oxy shares

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    8. Nice! Buffett now up to about 29% of OXY. He continues to increase...

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    9. Thanks Rob. Biden has been selling gasoline before July 4 which only has a short term effect. So after July 4 could be more interesting. And of course leading into the election.

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  14. "The rollout of the Biden administration’s CHIPS Act award money has so far focused on providing major awards for major companies, with just four leading-edge semiconductor manufacturers receiving the lion’s share of the $33 billion that has been allocated to this point.

    Now, with $6 billion remaining, the focus is shifting to sending smaller awards to smaller companies—dozens of them, up and down the supply chain."

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  15. It appears that much of the AI run can be accounted for by CHIP Act money and the money is coming to an end...

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  16. i own nvda and mrvl soun any other stocks that are cheap you like in AI

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    1. NVDA has the momentum and can rise more but likely more choppy as it runs further.

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    2. Louis, I do have one stock play coming up. Just waiting for the right price.

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  17. FYI we have a Hindenburg Omen.

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    1. Significant divergence between SPX/Dow/Dow Transports...is VIX ready for a pop?

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    2. Market conditions are weakening but I think we are in for more consolidation.

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  18. This is the second time we've seen the Hindenburg Omen this year, correct? SC, do you think there's potential for the up, or are we headed for a crash?

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    1. With the Hindenburg Omen what we want to watch for specifically is a cluster of events. So we have a single event. Let's watch for a multiple event 3 or 4 and that becomes a serious warning.

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  19. Trump convicted on all 34 counts in criminal trial! They got him on tape.

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  20. SC, what is the single event

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    1. Markets had experienced a single Hindenburg Omen event recently. Once they start to cluster in multiples then we can see conditions ripe for the selloff. We know it's coming.

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    2. Let's see how this develops. We could be due for another correction soon.

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  21. SC do you still expect we get a big correction here or ?

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    1. Next economic phase looks horrific. 75% of mortgages coming due.

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    2. does the stock market get a correction this year?

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    3. This may be the most profitable Election to trade ever!

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    4. SC - we got to your 5400-5500 target pretty quickly. Is the next move down to 2800-3000?

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    5. My S&P target has been met! So we have to watch here, markets are moving quite slow now, and with the Recession approaching.

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  22. Replies
    1. I have an update coming for energy markets. In short term prices may still come down further but a run is coming...

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  23. Gold forming H&S top which might portend a drop to 2100. Wonder if dollar is about to surge

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  24. The debate is done and not much will happen now in terms of Election for a while. DJT could come down under $15. I'll plan to get in before the Election.

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