Markets were essentially flat today. Most sectors were slightly red or green but biotech (XBI) had a nice move, as it broke out above some lateral resistance and rose 1.7%.
We've been watching this resistance level for a while. If we can now get a follow through with volume, the shorts could start running and XBI could really put on a show. Follow through is everything now.
If it can break above that level, then all-time highs come into play at that green line. You can see this in the weekly chart below.
This helped long position LABU add +5.0% today. We are now +22 points on this one and it could go much much higher still.
I sold the balance of ERX today for +5.00. It was a good trade and I got what I wanted out of it. XLE traded right to the 200-day moving average today and hit lateral resistance, so it was a good place to take the profit. I'm not sold on the prospects of energy yet, but we squeezed what we could out of it.
I added two longs today in the bio patch, CLVS and SGMO. Please refer to today's email on SGMO for the chart and brief summary.
CLVS is a perpetual takeover story as you know, and we have traded it many times in the past. Lately, it's starting to buzz again and the technicals are improving. After tagging 98 bucks back in late July it sold off and came very close to filling that mid-June gap up. It also found support near its 200-day moving average on 9/11 and since then it has started to rebound.
It now has put in two consecutive closes above its 50-day moving average and the volume is improving. 90 & 100 are my targets.
See you in the morning.