Here we go again. Remember when I warned traders not to short the baby bull in miners and exhorted them to not lose their position because surprises would come to the upside? Needless to say, many ignored that advice and they cost themselves dearly.

Now we have a second baby bull just getting started in Biotech. It still has a long ways to go. Yet I’m seeing some traders making the same mistakes again.

The size of the bottoming pattern and the massive volume in LABU is screaming that a big BIG move is coming. Don’t make the same mistake again that you made with miners. Get in and sit tight. This rally will last at least 2 months before it needs to take a break.

Today was the recognition day where the market realized the breakout is for real. We don’t need to look for an intermediate top until the weekly stochastics reach overbought. This rally is just getting started.

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Gary Savage
The Smart Money Tracker

Gary Savage authors the Smart Money Tracker and daily financial newsletter tracking the stock & commodity markets with special emphasis on the precious metals market.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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