This market has been quite loopy these first few days of the new year. Thankfully we’re in good shape and are exposed to a sector that thankfully has been semi immune to the selling. The IBB was off a bit today , but overall is acting superbly on a relative basis.
As you can see in the chart below, the SPX has violated the the 20,50 and 100 day moving averages over the last 3 days. It also violated the uptrend line (white line). This isn’t pretty, but as I say, this market has a way of getting corrections over with quickly and bulls step up to buy the dip. Let’s hope. The SPX managed a close one handle under the 100 day moving average. Lateral support is 30 handles away, just above the 200 day moving average.
The Russell 2000 (IWM) has dropped a quick 5% from the highs and managed a bounce off its 200 day moving average today.
My favorite sector biotech (IBB) sold off a bit today, but our stocks, BLUE and JUNO were stellar. KITE made more new highs and actually broke out above its bull channel. As you can see below, it managed a close at its 50 day moving average and also managed to hold its uptrend line (red line)
I’ve updated the P&L and have no new names tonight, but have my eye on a few. More tomorrow.
Have a great night.
Joe