"Markets are never wrong, only opinions are."
-- Jesse Livermore
Back in November of last year we started recommending to overweight biotech stocks, as the chart suggested a bombed out sentiment on that market segment. The chart of the SPDR S&P Biotech ETF (XBI) illustrates that ‘bombed out’ sentiment conveniently below (black circles). That call turned out to be more than timely.
For those who missed the first upleg, the next opportunity lays at hand now. Yesterday’s release of impressive results by Viking Therapeutics (+130% on the day) on a new obesity drug, jolted the whole sector higher. Technically, Biotech stocks are now above major resistance (red lines and circle) and ready for the next phase of the rally.
Disclaimer:
Don’t do foolish things in investing