Home » The Machines Are Alive-S&P 500 Falls Again, Biotech Sector Are On The Rise

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The Machines Are Alive-S&P 500 Falls Again, Biotech Sector Are On The Rise

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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The Machines Have Runamuck

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More signs the machines have been reprogramed. Of course, that is a joke, right; everyone knows the machines don’t control trading, right? (sarcasm). Once again, the S&P 500 gapped lower, and failed to fill the gap by days end. Notice any patterns in the chart below recently; you should, the last 4 out of 5 days, have seen the same thing happen. Gap lower, recover some of the losses, just about enough to get back to the opening print, and then the rally just falls flat on its face, not able to go positive. Anybody think, tomorrow will make 5 out of 6 days? Chances are pretty good we see the same pattern again.

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SPX S&P 500 SP500

I still believe we are headed to 2,500, again it is nothing catastrophic even if did.  In fact, to start the year, very few if any investors saw the S&P 500 rising to 2,500. We’ll I did. But that is not the point; this is likely to be a minor 4-5 percent pullback in a much longer-term uptrend, bull market.

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Surprisingly,  I called the rise to over 2,500 on December 22, 2016


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Biotech’s Signal A Bottom

GE: Just Not Worth It Anymore

Disney Is Just Too Cheap

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Biotech Sector Comes Alive

Look at the strength of the Biotech sector in a lousy tape. Look at that chart below of the Biotech ETF, $IBB, see what I see? Yeah, a double bottom, over two days, In a horrible market.

biotech

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Even more impressive look at the close for 4 of the big 5. Celgene, Biogen, Gilead, and Regeneron. All up, not far off the highs of the day either.

CELG Price Chart

CELG Price data by YCharts

The sector has been pounded for over a month, but the technical support level at $300 to $303, has held firm and will not be easy to break.

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biotech

Watch the biotechs, and watch the big 5 stocks. Stocks that don’t go down in a lousy tape, only have one way left to go, up.

Good night.

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Michael Kramer and the Clients of Mott Capital owns shares of CELG

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

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$spy, $SPX, $IBB, $CELG, $BIIB, $AMGN, $REGN, $GILD, #SP500, #biotech, #stocks, #celgene