Some interesting activity in the biotech sector...
Experienced traders know that when an asset holds steady – or even rises – when it should be falling, it's a bullish sign. They say the asset is "acting well." The same works in reverse. When an asset falls when it should be rising, it's "acting poorly."
Now here's what's interesting: In the past two weeks, folks have sold off all kinds of stocks... and riskier, more volatile assets like gold stocks and Chinese stocks have taken the worst beatings. Biotech stocks are considered some of the market's riskiest, most volatile assets. Yet as our chart today shows, the S&P Biotech fund (XBI) has not only held steady... it has struck a new 52-week high. This is impressive strength from biotech, considering its risky cousins are down big.
Longtime readers know we consider biotech stocks one of the great "boom and bust" market sectors. When a bull market gets rocking here, the gains easily go into the hundreds of percent. If the broad market rallies to new highs after this correction, expect biotech to lead the charge.
Experienced traders know that when an asset holds steady – or even rises – when it should be falling, it's a bullish sign. They say the asset is "acting well." The same works in reverse. When an asset falls when it should be rising, it's "acting poorly."
Now here's what's interesting: In the past two weeks, folks have sold off all kinds of stocks... and riskier, more volatile assets like gold stocks and Chinese stocks have taken the worst beatings. Biotech stocks are considered some of the market's riskiest, most volatile assets. Yet as our chart today shows, the S&P Biotech fund (XBI) has not only held steady... it has struck a new 52-week high. This is impressive strength from biotech, considering its risky cousins are down big.
Longtime readers know we consider biotech stocks one of the great "boom and bust" market sectors. When a bull market gets rocking here, the gains easily go into the hundreds of percent. If the broad market rallies to new highs after this correction, expect biotech to lead the charge.
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