IBB: Once a Chart Guy…

While I currently work with all sorts of macro-fundamental indicators and inter-market ratio charts, I started out just loving the act of creating and analyzing nominal stock and market charts. I have a habit of obeying charts and while this has been a positive in the big picture, it sometimes shakes me out of positions simply because I saw something in a chart. The little hint shown on the chart could so easily just be an in-day shakeout, but truth be told I’ve wanted to get rid of IBB for a while now.

And so I think I see something in the chart of IBB and the Biotech sector (although I still hold the relatively bullish ABBV) and this daily chart.


So in light of a continued (for now, at least) hold of the relatively bullish ABBV and in light of the sentiment/CoT dynamics going on in Treasury bonds, and in light of the fact that Bio is not a sector that usually does well in a rising interest rate environment, and in light of the fact that NFTRH 449 unearthed more caution signals on the stock market… it is time to manage risk here for a limited loss. This includes raising cash and slowly creeping further short select areas.

Here is the Citi graphic correlating market sectors to interest rates.

sectors and yields

Subscribe to NFTRH Premium for your 40-55 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).