“Risk Back On”:
This Monday we wrote up about the XBI, how we thought in the presence of some bottoming candles and familiar PRICE memory one should look for confirmation above 83.50 to get long. This has now occurred and perhaps we could see another leg higher in the fund. Looking at the updated chart now it has catapulted above its 21-day EMA and now has its focus set on the 50-day SMA and perhaps a double-bottom pivot above that. Probably the best thing this ETF has going for it is that no one believes it can accomplish any of these things. The WEEKLY chart if it can hold in this area Friday will also complete a bullish morning star and remember that doji candle last week after the 22% decline from the first week in March’s bearish dark cloud cover candle was a good sign a change in the prevailing direction was likely. The big boys like AMGN and BIIB seem to be acting better as of late and perhaps this nascent bullish narrative will be backed up by some M&A. Never base an investment thesis on this but respect the PRICE action, and for the time being it says stay long with CLOSES above 86.50.