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One of the noteworthy developments in recent days has been the move in biotech.  The group has been on a tear after the late June selloff was met with a new wave of buying interest.  The SPDR S&P Biotech ETF (XBI) rose 0.49 percent Thursday, bringing its YTD gains up to nearly 15 percent, outperformed the S&P by a wide margin.  Now the question is whether the rally has more legs?  Below is an update look at a trade in XBI.

The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges.  As shown, the underlying is in a short-term bullish trend when the price bars are painted in green.  The underlying is in a short-term bearish trend when the price bars are painted in red. 

Chart 1.1 – SPDR S&P Biotech ETF (weekly)

Our “U.S. Market Trading Map” painted XBI bars in green (buy) – see area ‘A’ in the chart.  After a strong run of outperformance since early 2016, XBI peaked in late spring and rolled over.  The March correction tested and respected support at the 23.6% Fibonacci retracement.  The April rally pushed the ETF above the February-March highs, signified…Click here to read more.

You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.

 

This is just an example of many successful trades that our member had enjoyed recently. After all, aren’t you glad you subscribed?

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