The biotech sector is positioned in a breakout position in a vertical bull market! IBB and XBI are the two major biotech ETFs. IBB is weighted more towards mega cap biotechs, XBI is weighted more towards smaller biotechs that are the candidates having the potential to be acquired by the big ones. Both IBB and XBI have gone thru significant correction since the summer 2015 peak. XBI just broke out the 2015 peak and IBB has a little ways to take out the 2015 top.
The market took a drastic turn on the upside since the beginning of the year. It has defied a lot of conventional methods of technical analysis; it basically just went up like a straight line. This is a very unusual market condition that only happens maybe once a life time. This is called vertical market condition
The US government was shutdown over the weekend. It is a big deal as it affects many people’s lives and the economy. But in this vertical market, this shutdown will be just a blip that the impact to the market is almost negligible. The bull market will brushoff the event like it has been doing since 2017.
It was the 13th day in the first daily cycle and the 3rd week in the current weekly cycle on Friday, January 19, 2018 before the shutdown.
The S&P 500 cash index ran 114 points in the last 9 trading days! What a great start of 2018! It officially kicked off the new weekly cycle on the first trading day in 2018. It just finished the 2nd week in the weekly cycle. With the incredible momentum, we expect the current rally to continue until at least April 2018.
We at Pricentime.com run daily, weekly and monthly scanners to search for stocks that are ready to take off. The focus of the search is the study of price and volume information in the given stocks to predict pending movements. We also scan unusual options activities to find winners.
