The market yanked back hard from its hyper extension levels, as we discussed earlier in the week. What I had not expected was for Biotech and “everything” to slam with it.
XBI has sold off 4ADR in 4 days and is now technically bearish, a wild contrast from Mondays price action.
Quite a few “super investors” continued to pile into China stocks and many are now underwater on their positions. Alibaba’s earnings will help determine where we go from here.
I genuinely feel I have little edge anywhere right now, it’s all a little too messy, conflicting and expensive. Even after this pullback so many names trade at eye watering multiples that will be tough to grow into.
I knew this at the start of the week but what I’d expected to happen/see was rotation, not broad based selling. I need to see some confirmation that my thesis is correct before adding risk to my overall port.
XBI must now move a whopping 9% just to get back too Mondays high and ARKG 14%.
IWM is fine in my opinion as long as it holds $227, a break below that would be concerning from long positions.
Quantum computing and space stocks remain strong, check the weekly on IONQ, RGTI, QBTS etc.. Very impressive given the state of other sectors.
So for today I’ll be sitting out whilst I continue my deep dive into multiple names and sectors.
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