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Since the October broad market lows, XBI is up almost twice as much as the 500 Index.
In the past when the Biotech ETf (XBI) broke below rising support it seems like the S&P 500 followed its path in short order. Is the breakdown in XBI something to respect this time around or just some profit taking from a very hot sector?
Right now, the picture the market is giving is so rosy. Nothing could possibly go wrong now??
I think we get to at least 1500 this year. The market seems more “right-translated” as of late. Correction in March to ~1300 and then another 10-15% move into the summer before a significant pullback? Could it coincide with the announcement that project twist is ending??? Hmmm…..
I simply have to wait for a correction before I get back into the ring. Risk/reward is high here. I actually hope that the market follows XBI so that the euphoria subsides a bit.
Thanks,
Aaron