Beautiful move in Chinese equities with almost all holdings pushing above short term hyper extension levels; thereby initiating a sell rule. That even China decides to test out their missile capabilities, you can’t make this up.
For the rest of the market the chop continues, was interesting to see XBI and IWM sell off then reclaim a partial amount of the move. There will be a lot of impatient traders/investors getting extremely fed up at this point. This creates even more chop yet far greater opportunity once things get moving.
I am still under the belief that biotech and sub sectors represent extreme value propositions. It’s part of the reason I like ARKG, the issue is Cathie keeps tampering with the weightings and holdings. As far as my research has taken me BEAM and NLTLA are the best two bets. Both are scheduled to release big data in Q4 which could really kick the whole sector off.
XBI and IBB other more risk-adverse exposure to the sector.
IWM still looks good with the daily flag building above prior resistance. We’ve had multiple washouts to lower trust amongst bulls and increase the confidence in bearish bets. Meaning there should be a lot under-exposed.
QQQ has also built a nice tight daily range and remains bullish both short and long term.
So as it stands there’s no reason to be bearish.
The one name that does look more and more bearish is LLY, they continue to make the headlines with “good news” yet the market fails to push higher. Something well worth keeping an eye on.
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