Weekend Report

Portions of the market bounced back strongly last week, led by technology.  Bonds also had a strong week.  Commodities continued to struggle, with gold and silver continuing to trend sideways to lower.  I did a short article on corn earlier in the week and thought it looked like an interesting trade to the long side.  The grains are still technically in a Stage 4 downtrend though.

Commodities are definitely in a do or die situation now as if they continue much lower from here the entire complex will be back in a Stage 4.  If that transition occurs maybe the broad markets will continue to head higher.  Semiconductors still look strong so they might be a good sector to look at for market leadership.  Biotech is also looking like it wants to resume a Stage 2 uptrend.  Many biotech stocks transitioned back into Stage 1 or 2 last week.  Checkout the chart of IBB below and notice it has formed a potential cup and handle continuation pattern higher.  It is also once again outperforming the S&P 500.


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