August 21, 2023
Mish's Daily
By Mish Schneider
Biotechnology has traded basically sideways since the start of 2023.
In the face of higher rates, stronger dollar, inflation, FDA approvals and busts, and an emerging winter season, the ETF IBB has a serenity to it that appears drug-induced if you will.
Of the top 10 holdings, Regeneron is the big winner as of right now while Biogen is under pressure. Note-would keep your eyes on a potential bottoming pattern in BIIB.
Furthermore, and even more interesting, is that the ETF does not really reflect the big movers. Rather, IBB is holding as a result but not flying.
Is it time to buy IBB?
On the Daily chart and what is not shown here, is the July 6-month calendar range low at 124.11.
Only once has IBB traded below that level in 2023 in March after the bank mini crisis.
Hence, we feel good calling 124 the bottom of the trading range and risk point.
The top of the trading range of the July 6-month indicator is 130.50.
Again, IBB traded above that in early 2023 when it soared to 138.
However, since then, 130-132 has been resistance. We feel good calling that level the top of the trading range.
As far as other indicators, Real Motion looks like a double bottom from early July and now, although we would like to see more momentum.
On the weekly chart, we can say the same.
Our Leadership indicator shows IBB outperforming SPY on a daily timeframe, but still underperforming on a weekly basis.
On the price, over 128 will pique our interest.
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Mish in the Media - All clips here
Schwab Network with Nicole Petallides 08-21-23
Your Daily Five 08-18-23
Daily Briefing Real Vision 08-17-23
Business First AM 08-13-23
CNBC Asia 08-10-23
StockchartsTV Final Bar with Dave Keller 8-10-23
Benzinga Morning Prep Show 08-10-23
Business First AM 08-08-23
Yahoo Finance 08-01-23
Coming Up:
August 22 and 24 Mario Nawfal Spaces hosted by Dr. Danish
August 24 Live Coaching with Mish
August 28 Chuck Jaffe Money Show
September 7 Singapore Breakfast Tadio 89.3 FM
October 29-31 The Money Show
ETF Summary
S&P 500 (SPY) 437 is the July 6-month calendar range low-will look for a return above or a trip to 420
Russell 2000 (IWM) 181.94 the low of the week is key-180.72 the 6-momth calendar range low
Dow (DIA) Relative strength here-a return over 346 positive
Nasdaq (QQQ) 363 the July 6 month CRL-BUT held a key weekly MA at 357
Regional banks (KRE) Outperformer as all this did was fall to the July range high at 44.40
Semiconductors (SMH) 145 a weekly MA support level with 150 pivotal
Transportation (IYT) Landed on the July 6-month calendar range low. If holds a positive
Biotechnology (IBB) Compression between 124-130
Retail (XRT) 62.80 the July 6-mo. calendar range low-this held the 200-DMA as well
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