Broad Market Outlook
Nasdaq, Consumer Discretionary's , Materials, Tech, Healthcare and Biotech's are either back to there precorona high or higher. It feels like years ago the market was dropping 10% back to back and now we are right back to highs and higher.
The Nasdaq has shown us so far that it has been able to push to new highs, which is common at the retest with impatient traders rushing in. Instead of selling into resistance, as the market continues to pop higher, respecting the low of day stops seems to be the wiser move. Looking back at some of my best trades on Thursday become my worst trades on Friday. Had I followed this rule more closely it would have been far more beneficial then selling into strength.
With most sectors and stocks up 20,30,40,50% in the last few weeks, a lot of the easy money is behind us in the short term. This tends to be the time when most start bringing up "long term holds" because everything is working. Just think of all of your friends telling you to buy Airlines after the pop they had on Friday.
Let's continue to do what we do best, find the best charts, let the entries come to us, protect ourselves when were wrong and lock in profits.
Macro Rotation Outlook
MDY Mid Caps
IWM Small Caps
Sensitive - sectors that have moderate correlations to overall market conditions.
Cyclical - sectors that are more sensitive overall market conditions.
VCR Consumer Discretionary
Defensive- sectors that tend to outperforming during sub par market conditions.
VDC Consumer Staples
IBB Bio Tech
Big Picture Set Up
This BIIB has been basing all year around this $310 area, for now the real out is vs $290 however once it takes out $310, I will be looking to up that vs $300 then LOD, its still inside quite the macro flag so I would not be too surprised if it has a hard time trading higher then $380. If it can however then its ready to run it back to the prior highs of $440. Reminds me a bit like REGN peep below.