Biotech: An end to a bubble?
Biotech has had an insane run up the last year, and specifically the last 14-15 months where it broke out of its 30wma channel and relative consolidation. At the moment, almost daily we are seeing new bioteches with all sorts of "ideas" no revenues, high valuations come into the market. this is similar to tech booms in my eyes, although not yet as overextended because the general public is not as invested in the stock market as it was back in 1998-2000. Regardless I believe this run up will end. will it be now? The hardest part about bubble is calling the top, and unfortunately timing is everything, All I can do is take high reward/ low risk opportunities and take tight tops on insane overextensions.
In this most recent rally again healthcare/biotechs was a considerable rallier and in the lead w/ utilities, although biotechs have probably had a much crazier overextension. I think we might be coming near the end, but as always, the last push is always the craziest as everyone goes all in. regardless it is usually at around this spot 14-18 months where bubbles in stock market sectors begin their decline or last push, so keep this on watch for low risk entries and as always have VERY tight stoploss when playing bottoms and tops. remeber you can always get back in once the situation favors you
Conclusion: Monthly RSi is over 87, weekly rsi is starting another breakout and etf is breaking out of upper bollinger band. A small short position could be taken here using a VERY tight stop loss with inverse 2x etf BIS. Preferably I would wait for one full candle over bollinger, w/ open and close over upper bollinger band on weekly. I
In this most recent rally again healthcare/biotechs was a considerable rallier and in the lead w/ utilities, although biotechs have probably had a much crazier overextension. I think we might be coming near the end, but as always, the last push is always the craziest as everyone goes all in. regardless it is usually at around this spot 14-18 months where bubbles in stock market sectors begin their decline or last push, so keep this on watch for low risk entries and as always have VERY tight stoploss when playing bottoms and tops. remeber you can always get back in once the situation favors you
Conclusion: Monthly RSi is over 87, weekly rsi is starting another breakout and etf is breaking out of upper bollinger band. A small short position could be taken here using a VERY tight stop loss with inverse 2x etf BIS. Preferably I would wait for one full candle over bollinger, w/ open and close over upper bollinger band on weekly. I
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