The run up into the solar eclipse has made Biotech investors giddy with speculation. Pre-Market the IBB was $375 now it is $366. This looks like an exhaustion move to me. The rate of ascent in the IBB chart looks like it wants to fold back on itself. Last time we had this rate of ascent in March of 2014 we had a 14% drawdown. The Fly has flagged the overbought situation here. I hope you don’t mind if I take advantage of your profit taking. I have purchased some Biotech puts out three months into the frenzy this morning.
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Now You’re talking.
Long the Apr 360/350 Put vertical. Playing for a quicker snap-back.
Another thought: Biotech was a huge beneficiary of the deflation trade. Organic profit and revenue growth with little pricing pressure. As the $DXY corrects into its seasonal cycle low I suspect both IBB and IWM will have a relative bad time of it.
I do believe you will be proven correct. Imminently.
Now this is what I’m talking about. An actionable, realistic trade on a specific sector not asset class. Fully on board with this one.
Sink da $BIS
Blue, Good luck on this one I’m with you. There is nothing more pathetic then the Boomer’s rush into the oldest con on earth. Snake Oil. The coming Biowreck implosion will be a fitting ending to the most selfish generation in recent times. May the side effects be felt.
Bought a small starter position $BIS Friday.