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BBH

Biotech symmetry. Let the market settle down, and then go long.The biotech sector is really interesting when you dive down into the symmetry of the last few cycles. Early 2000s-2008 and 2016-2018 are mini rallies within the bigger wedge. If this pattern is to continues, you can look for entry around the end of 2020 when we bump up against the larger support line (around $3600), and expect to hit the resistance of the larger wedge ($10,000). There is also a lot of confluence around the $7500 mark so we could fall back to that after hitting 10k. This would repeat this pattern for the third time. Near term, I have some shorts in this sector because I think many of this small biotech companies have been operating at negative cash flow with a ton of free credit. I don't expect massive gains on these shorts, but I will certainly be going long towards the end of 2020.
NYSE:BTKLong
by warrenbudget
Biotech's 40% Bear Market is OverThere is one useful way to determine when a trend is over and that is using a 50% "speedline" of a move. The decline from $400 in $IBB, the IShares Nasdaq Biotechnology Index Fund back in July 2015 and then tumbled 40% to $240 on February 9th, 2016 and later retested $240 on June 27, 2016. The mid-point of that decline is $320 and a line drawn from the top at $400 down through the $320 level on June 27th gives you a line that is now down below $275 and that line has been violated to the upside, retested and is turning back up again and THIS TIME it is with President Trump pushing for faster "time to market" in exchange for lower drug prices. Will the deal go through and will it make a difference? Time will tell. For now, the Yellen-Bubble-popping bear market has been dramatic since August 2015 as it tumbled a whopping 40%. But there might be signs of life here in Biotech Bubble land, even with fears of price gouging still lingering over these stocks . For now: Average in over the next 2-3 months and see if this story pans out. Tim 12:31AM EST February 2, 2017 280.42 last $IBB. Other symbols for Biotech $FBT, $XBI, $BBH
NASDAQ:IBBLong
by timwest
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