Wednesday February 28th
The General Markets obviously remain bullish, but this week we are also seeing The Biotech sector and Crypto break out in a big way , so we’ll discuss those areas a bit more at the end of the report.
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SPX – We are on day 35 as of Tuesday, and the General Markets are coming due for a dcl, but so far they haven’t even been able to drop down and fill that gap.
XBI – After that breakout on Monday, the Biotech Sector exploded on Tuesday! LABU was up 17% and many biotech stocks were up nicely. I will discuss a few at the end of the report, but to be honest, MANY are now too extended to recommend, just like XBI. We would have to wait for a pullback (maybe when the markets put in a dcl), or a flag. Look at the November to January run…
Take a look at the November to January run and you’ll see up, over, up, over. We may see that on this run too, and those pauses may offer entries on individual stocks.
WTIC – Is Oil finally ready to breakout from the chop and run? Stay tuned, but this is a bullish set up.
The USD has been weakening and chopping sideways ever since that strong surge to the 105 area, and Gold has been chopping sideways too.
GOLD – Gold has been unusually strong this late in an intermediate cycle. At this point we are still expecting a drop into an ICL as drawn, but if the USD suddenly rolled over and Gold were to breakout higher, then we would likely have a low in place within this long consolidation.
GOLD IN YESTERDAYS REPORT – This hasn’t changed from my weekend analysis either. If it breaks to new highs there is a stealth ICL, but it should roll over 1 more time to form a bit of a deeper low for the ICL. You may want to re-read the weekend report on Gold, it was fairly detailed.
SILVER is also starting to show strength rather than weakness, and the MACD is showing divergence. So far the Silver stocks are still right at the lows, so there is no concerns about not being invested yet.
GDX – To be honest, does look like it has bottomed, but with Gold & Silver unable to put in a visible ICL, I am not buying it. It has been chopping at the lows for days, so we haven’t missed any kind of an upside move yet. Why does it look like a low?
1. GDX has that a-b-c down, and
2. I see what looks like a capitulation high volume low too.
3. If I draw a channel lower, it looks like it can still go lower, but if I draw a bullish descending wedge, it looks like a shake out and recovery. We are in a tight Apex, so keep an eye on GDX.
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I am mainly focusing on Biotech and Crypto sectors for trades. Bitcoin has been exploding, but the Crypto stocks were a bit disappointing yesterday. They gapped open, sold off, and then stalled, with some closing up 2 or 3 %, but others were actually down. I’ll discuss that below with a few Biotech ideas too. Right now the markets remain bullish and Biotechs have come to life in a big way this week. Enjoy your Wednesday trading.
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~ALEX
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BITCOIN surged higher again overnight. This has been explosive, so even though Crypto stocks stalled yesterday, I really would expect them to move higher today. Bitcoin is suddenly almost at $60,000 and its only day 36 or 60.
RIOT gapped open and closed red. This was unexpected with Bitcoin surging higher, but it happened to almost all of the crypto stocks, so we’ll see what we get on Wednesday. I used this chart to simply show that in the last run, Crypto stocks gapped open and ran again and again, so it is puzzling as to why this gap open and sell off took place.
WULF – Here I am just showing that we have seen ‘1 day drops’ in the middle of the last run up too, so again, with Bitcoin up on Monday, Tuesday, and Wednesday, I am interested in seeing what these can do today.
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The Biotech Sector broke out this week in a big way, but we have been trading it for weeks with CRSP, ESPR, TWST, INO, LABU, etc. Today I want to post just a couple more biotech trades ideas below, but also now that it broke out, I am thinking of running through many of these on my watchlists and just adding then to a report, possibly tomorrow.
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INO – We traded INO above the 50sma, and then it pulled back. I think that it wants to run back to the highs, so I actually re-entered it yesterday. The volume was solid and a move from here to the highs is a good move. Earnings is scheduled for March 6.
AHT started to break out from the lows and normally I would have bought this but they have earnings today, so I am watching this and EDIT. They both look like buys, but I just want to wait for their earnings reports to pass.
I mentioned EDIT above, and you may recall The bullish CRSP trade.
EDIT, NTLA, and CRSP have similar ‘Gene editing’ development as a business model.
NTLA released earnings and is starting to take off, so at this point we have CRSP & NTLA responding bullishly, and EDIT may be next.
EDIT broke out yesterday, and releases earnings at 7 am today.
ESPR released earnings and sold off, but then it suddenly reversed at the 50sma, so this is a buy.
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PRTA also released their earnings, but it had no reaction as it languished at the lows. It now looks to be starting to push higher as the sector becomes more and more bullish. This tiny move was $25 to $30 and it looks like it wants to go higher.
PROK – Ed mentioned this a week ago and I have been watching it. What a base. The RSI is showing strength and the MACD is rising as it crawls along the lows. I think that it will run, but with some of these its hard to know if they’ll need funding or are struggling, so I am watching it and may enter if it starts higher.
