#$ibb

Here are some of the most noteworthy highs and lows from across the markets for Friday, August 7, 2020.

SPDR Gold Shares $GLD Hitting All-Time Highs

U.S. 30-Year Fixed Mortgage Rate Hits All-Time Low

20 Years Later, Qualcomm $QCOM Finally Hits New All-Time High

Corn Testing ~13-Year Lows…Again

Biotech ETF $IBB Testing Breakout Level At Former Highs

If you’d like to see these charts as they come out in real-time, follow us on Twitter and StockTwits. And if you’re interested in the daily “all-access” version of all our charts and research, please check out our site, The Lyons Share. You can follow our risk-managed investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!

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Here are some of the most noteworthy highs and lows from across the markets for Friday, April 17, 2020.

Amazon $AMZN Hitting All-Time Highs

Netflix $NFLX Hitting All-Time Highs

Walmart $WMT Hitting All-Time Highs

iShares Biotech ETF $IBB Hitting ~5-Year Highs

Value Stocks Hitting All-Time Lows Relative To Growth

If you’d like to see these charts as they come out in real-time, follow us on Twitter and StockTwits. And if you’re interested in the daily “all-access” version of all our charts and research, please check out our site, The Lyons Share. You can follow our risk-managed investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!

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Here are some of the most noteworthy new highs and lows across the markets for Friday,February 7, 2020.

Johnson & Johnson $JNJ Breaking Out To New All-Time Highs

Biotech ETF $IBB Testing ~5-Year Highs

Italian Stocks Testing Decade Highs

Oil & Gas Exploration & Production ETF $XOP Hitting All-Time Lows

Industrial Metals Hitting 3-Year Lows

United Arab Emirates ETF $UAE Drops To All-Time Low

If you’d like to see these charts as they come out in real-time, follow us on Twitter and StockTwits. And if you’re interested in the daily “all-access” version of all our charts and research, please check out our site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!

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Here are some of the most noteworthy trendline developments across the markets for Wednesday, November 27, 2019.

Bitcoin Testing Post-2015 Up Trendline $BTC $BTC.X

Value Line Geometric Composite $VALUG Bouncing Off Broken Post-2018 Down Trendline

iShares Biotechnology ETF $IBB Testing Post-2015 Down Trendline

Russell 2000 Volatility Index $RVX Hitting Broken Post-2018 Down Trendline Again

Wheat Testing Decade-Long Down Trendline

iShares Australia ETF $EWA Testing Post-2007 Down Trendline

If you’d like to see these charts as they come out in real-time, follow us on Twitter and StockTwits. And if you’re interested in the daily “all-access” version of all our charts and research, please check out our site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. PLUS>>our BIGGEST SALE OF THE YEAR is going on right now, so there's never been a better time to sign up! Thanks for reading!

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Biotech stocks are one of the sexy areas of the market. And they are one of the most volatile when dealing with individual company stocks. A failed trial can cut the stock in half overnight, while a success gives a double. So for many without the expertise or time to understand the science (like me) investing in them comes best with an ETF.

This smooths out the wide swings of any one company. And it allows investors access to the entire sector. The Biotech ETF, $IBB, is one good way to get exposure. And if you did not hold your nose and buy on Christmas Eve it is giving you a reason to right now.

The chart above shows the price action since the top in early October. It pulled back and consolidated through November before dropping to that December low. Since then it made a quick retracement of 61.8% of the total drop and consolidated. This was also right at the top of the November consolidation range.

Since making a low on Christmas Eve, equity markets have had a remarkable push higher. My bear market friends are quick to point out that some of the strongest rallies happen in a bear market. But we have also witnessed some very strong ‘V’ shaped recoveries in the past 5 years. While the debate rages on one thing is certain. Biotech stocks are outperforming.

The chart of the Nasdaq Biotech Index, $IBB, below adds some color to that. Since making a bottom it has retraced between 50% and 61.8% if the move down. This is a 20% move higher. In contrast the S&P 500 has retraced about 38.2% of its move down and gained just under 12%. This is the kind of outperformance you want to look for in volatile markets.

The question now is, will it continue? That is not so easily answered. Momentum indicators suggest a pause at least and possibly some kind of reversal is in store. The RSI is pulling back and the MACD leveling. These are not bearish indications short term but waning momentum. It could lead to a consolidation to reset the indicators or it could result in a pullback in the Index.

Kanye can go from happy to upset in a mater of seconds. Biotech stocks seem to be mimicking him. Biotech stocks ran higher from May through to August. There were a couple of set backs along the way, but a strong move higher. Large cap healthcare was looking good. Companies like Eli Lilly and Pfizer were climbing. The Medical Devices field was also showing strength. It seemed like a change of leadership in the stock market was upon us with healthcare taking the lead.

After a short pullback in September Biotech stock prices were rising again into the end of the month and finished September at 3 year highs. All looked well for the sector. And then October started. Of the first 7 trading days in October the Biotech Index has been down 6 of them including the last 4. A 6% drop in just over a week. Is it time to panic?

The pullback brought the Biotech Index ETF, $IBB, back to its 100 day SMA. It bounced the last time it touched there in June. But momentum is weaker this time. The RSI is making a 6 month low and pushing into the bearish range. And the MACD is negative. It has not dipped to negative since May, when it was rising out of the April low.

These alone do not state the case to sell Biotech yet. Looking at the price action, it has stalled in the move lower at the prior low from August, creating a channel. If it continues below the July dip there is likely trouble ahead as a double top would confirm. Time to protect you Biotech and watch closely.

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The Biotech sector has been a difficult place to put money over the last year.  There have of course been many winners, and many losers.  For the investor who does not have the resources to pick a winner out of the field it has been a challenge to stay involved.  The ups and downs of the sector can be seen in the Biotech ETF, $IBB.  And there have been a lot of them over the last 12 months.

The chart below shows the move over resistance in June of 2017 and continuation higher.  It stalled in July and pulled back to retest that break out level.  The reversal made a higher high and we were off to the races.  But then another pullback to retest support.  And another higher high in January.  But that one could not hold up either and a third test of support ensued.  

A close look at this last move higher reveals some interesting price action.  The rebound off of the April low was only to the 100 and 200 day SMA's and it fell back again.  the rise from that May low kept going though.  Confirming a double bottom as it passed over the 200 day SMA.  A drop back in June tested the 200 day SMA as support and held, leading to a reversal and higher high.  Again.  This time the pullback found support at a higher low.