When I look at the sector charts above I think to myself that we could be in much worse shape. Yes, we’ve had a market pullback, and volatility is back, but based on the crappy action above, we’re in good shape. The only sector that’s respectable is technology. XBI (biotech) isn’t listed, and that’s been hanging in there.
When they asked Willie Sutton why he robbed banks, he said, “because that’s where the money is”. That’s true with stocks too. You follow the money and ride momentum. Stay away for the bad sectors. Don’t make it harder than it has to be.
I could be wrong, but biotech to me looks like it could be on the verge of massive breakout. I’ve been fooled before, but if the financial engineers don’t screw it up next week, we could see a really nice “risk on” market for a couple of weeks.
I am looking at a few biotechs for entry and will possibly add them shortly. They include: ALDR, CHRS, TBPH, ANIP, RGEN
Short sales I have my eye on include: SIG and STMP
As always check into the P&L tab on the blog to stay updated on any adjustments or stop changes.