The Stock Market Is Moving Back To A Risk-On Mentality
The risk-on asset classes had good days, with Biotechs (XBI) up 1.4 percent, Chips (SOXX) up 1.3 percent, and materials (XLB) up about 1.2 percent. Risk-on is what one wants to see start to happen more because it tells us that investors are looking to move into more aggressive parts of the market, and that bodes well for a rise higher.
The S&P pieced together a decent day, rising about 40 bps, recovering about 2/3 of yesterday’s decline. It seems the past three days have been a game of back and forth filling the gaps from the previous day. The good news is that today, there was no gap up or down, and that should hopefully mean tomorrow we continue higher.
The XBI continues higher and appears to be heading back to the previous highs.
The setup in Chips also continues to be very strong.
What is ironic is just how much alike the two charts look. I guess the chips and biotechs are part of the same risk-on algo running.
Materials are also breaking out, and that, of course, is a positive as well.
Not only that, but the Russell 2000 is breaking out as we talked about the other day.
Nektar broke out today, after bouncing off our support level around $70.
Intercept looks close to breakout too.
Micron broke out and appears to be heading back to $61 now.
Lam Research also appears to be breaking out and could be heading back to around $224.
Texas Instruments back to $120.
The suspense in Amazon is just killing me! BREAKOUT ALREADY!
It looks like the dollar finally broke out, and it seems clear which way it is going.
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