Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,861 Blog Posts

The Patient is Still Sick


The leading parts of the market, dating back several quarters, are largely under heavy selling pressure again this morning.

Because of this, I am lightening up on my longs inside 12631, as breakout plays are largely suspect amid the ongoing carnage in the biotechnology sector, for example. Small caps are also a huge concern.

On the biotech daily ETF, updated below, note the potential now for a massive head and shoulders top spanning all of 2014, heretofore (light blue lines).

Any way you slice it, biotechs had become too extended longer-term, as we have been arguing for a while now.

I am seeking to finally pounce on some shorts I have been stalking for a while, such as Starbucks, if the weakness persists broadly.

Despite the S&P hitting a new all-time high once again this morning, it is as an unhealthy series of all-time highs as you will likely ever see, given the action in the leaders.



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  1. StockCats

    that pic is classic! DaVinci FTW

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