Markets enjoyed a lukewarm start to the week Monday as the Nasdaq was UNCH and the S&P 500 rose .5%. Both of those benchmarks were up 1% early on and both dipped negative briefly before finishing up in the green. The source of frustration was the biotech group which was slammed on some political developments, much like when GILD was not too long ago. Truth be told the group has been acting skittish as of late and this was just putting some gas to the fire. The BBH lost close to 4% and undercut its 200 day SMA. BIIB, once a darling in the space, has now receded more than 30 handles from last Thursdays intraday high which met 50 day SMA resistance. As the Nasdaq fell 1.4% on Friday in huge trade, aided by bulging trade related to quadruple witching, some of the bigger names in the space acted well like AMZN and FB, which both gained last Friday although with very small advances. They tacked on decent gains Monday with AMZN taking out a 539.59 double bottom pivot point Friday and adding another 1.5% on a flat Nasdaq. Looking at an ETF we used to like to watch to get a feel for where markets could turn around was the levered SDS. This vehicle should not be thought of as a long term investment, but can be used to hedge longs. But today it recorded a “golden cross” with its 50 day SMA crossing above its 200 day SMA. It has not formed a bullish rising wedge and one can enter with a buy stop, and as always a CLOSE above, at 22.60.
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